Does anyone know what the tax effect of a 501(c)(7) Tax-Exempt Corporation (Social Club for hunting & fishing) selling an asset is?

This asset would be a portion of the land that the corporation owns. There are 39 members and most likely the net proceeds from the sale would be distributed equally to each member. There could be a capital gains tax due to the corporation but I'm not sure.

Secondly, it would seem that the individual member could treat the distribution as a "return of capital" and reduce his or her cost basis for their purchase of stock in the Club. Are there any comments on that?

Thanks in advance for you help.

Cannot help you! Tax consultation for 501c organizations is specialized tax work which I do not do.