Ed Has Decided to Retire and Completely Terminate His Interest

Ed has decided to retire and completely terminate his interest in his closely held business.Currently, he owns 60 percent of the corporation while his son owns the remaining 40 percent.His son received his 40 percent over 20 years ago as a gift from his father.Ed will not be able to secure exchange treatment for a redemption of his stock because he will be treated as owning all of the stock of his son.