The maximum amount of the stock redemption proceeds under Sec. 303 is determined by summing all of the following except
A)the estate's death taxes.
B)the estate's funeral expenses.
C)the estate's administrative expenses.
D)All are allowable.

Question

Quizplus · Accepted Answer

All the options listed (the estate's death taxes, funeral expenses, and administrative expenses) are considered in determining the maximum amount of stock redemption proceeds under Section 303. This section allows a portion of the stock in a closely held business to be redeemed by the estate without the redemption being treated as a dividend, to the extent of paying death taxes, funeral expenses, and administrative expenses.

The Maximum Amount of the Stock Redemption Proceeds Under Sec