Constructive Distribution
/kənˈstrʌktɪv dɪstrɪˈbjuːʃən/
Definitions
- (n.) A legal doctrine treating certain transactions as if a distribution occurred, even absent actual distribution, for tax or estate purposes.
The IRS applied constructive distribution to impute taxable income to the shareholder.
Forms
- constructive distribution
Related terms
See also
Commentary
Used primarily in tax and estate law to prevent avoidance of taxable events by treating benefits as distributed even if not physically transferred.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.