Raul's gross estate includes 1,500 shares of stock of Orange Corporation (basis to Raul of $600,000,fair market value on date of death of $4.1 million).The estate will incur $2.2 million of death taxes and funeral and administration expenses,and the adjusted gross estate is $9 million.Denise,Raul's daughter and sole heir of his estate,owns the remaining 500 shares of Orange Corporation's (2,000) shares outstanding.In the current year,Orange (E & P of $5 million) redeems all of the estate's 1,500 shares for $4.1 million.What are the tax consequences of the redemption to Raul's estate?

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The Answer of Raul's gross estate includes 1,500 shares of stock of Orange Corporation (basis to Raul of $600,000,fair market value on date of death of $4.1 million).The estate will incur $2.2 million of death taxes and funeral and administration expenses,and the adjusted gross estate is $9 million.Denise,Raul's daughter and sole heir of his estate,owns the remaining 500 shares of Orange Corporation's (2,000) shares outstanding.In the current year,Orange (E & P of $5 million) redeems all of the estate's 1,500 shares for $4.1 million.What are the tax consequences of the redemption to Raul's estate?

Raul's Gross Estate Includes 1,500 Shares of Stock of Orange