_____ 15. An individual shareholder may receive sale treatment on a corporate redemption if the shareholder has all of his or her stock redeemed and no related parties own any of the same corporation's stock.

Question

Quizplus · Accepted Answer

This statement is true. It is known as the "complete redemption exception" and allows individual shareholders to receive sale treatment (capital gains rates) on the redemption of their entire stockholding. However, if related parties own any of the same corporation's stock, the shareholder may not qualify for sale treatment.

_____ 15 an Individual Shareholder May Receive Sale Treatment on a a Corporate