Homework SourseWhich of the following redemptions normally will not qualify
Which of the following redemptions normally will not qualify for sale treatment?
| A. | A partial liquidation where the stock is redeemed from a corporate shareholder | ||
| B. | A redemption from an estate to provide cash to pay death taxes | ||
| C. | A redemption of all the stock that the taxpayer owns | ||
| D. | A redemption that reduces taxpayer ownership from 30% to 20% |
Solution
Solution: A partial liquidation with the stock redeemed from a corporation.
Explanation: A distribution in partial liquidation will not treated as a sale for a corporate shareholder because distribution does not qualify for partial liquidation treatment
