When the general liquidation provisions of § 331 apply, consideration should be given to the possibility of minimizing tax obligations.Available planning options include
A)Placing gifts in trusts
B)Arranging a series of liquidating distributions that spans several years
C)Selling stock for transfer to a trust with a reversionary interest
D)All of the above

Question

Quizplus · Accepted Answer

Arranging a series of liquidating distributions that spans several years can help in spreading out the tax liability, potentially minimizing the overall tax burden.

When the General Liquidation Provisions of § 331 Apply, Consideration