A corporation offered to acquire my business in a C organization.  In
addition to my business I also owned a residential rental property
($420,000 FMV and $270,000 adjusted basis) that the acquiring
corporation does not want.  According to the reorganizational plan,
the acquiring corporation will issue voting stock in exchange for my
business assets and immediately after this exchange, I will liquidate
by distributing the stock and rental property to my shareholders.  The
FMV of the distribution will exceed my shareholder's aggregate basis
in their stock by $2 million.  What tax consequences result from the
fact that the acquring corporation is not acquiring the rental
property in the type C reorganization?

Can I have an answer tomorrow afternnon?

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Clarification of Question by lando60-ga on 10 Mar 2006 16:09 PST

I mean a corporation offered to acquire my business in a "type C
reorganization" ( not type C organization as previously posted).