A stock redemption to pay death taxes under Sec. 303 is generally treated as

Question

Quizplus · Accepted Answer

A stock redemption under Sec. 303 is not considered a return of capital or a dividend, so choices C and D are incorrect. It is also not considered ordinary income, as it is not characterized as earnings from the taxpayer's labor or investments. Instead, it is considered a sale or exchange of property, and the taxpayer would need to report any gain or loss on the redemption accordingly.

A Stock Redemption to Pay Death Taxes Under Sec