Sometimes a profitable business may want to share its profits with its owners; can’t readily do so with payments in the form of cash payments; but can do so by distributing company property to them that will have immediate value to them.  The post under the link below provides a brief but excellent discussion of this situation.  Briefly:  Multi-member LLCs and other entities that are taxable as partnerships can make these payments tax-free; entities taxable as C and S corporations can’t.

Here’s the link:  https://frostbrowntodd.com/checklist-for-non-cash-property-distributions-from-a-partnership/#page=1