Twelve years ago, F persuaded his daughter to join in the family business by giving her 40 percent of the stock.He has retained the remaining 60 percent until now to ensure control.F now wishes to turn the business over to his daughter.A redemption of all of F's shares can qualify for capital gain or loss treatment.

Question

Quizplus · Accepted Answer

Since F is redeeming all of his shares, it can be treated as a sale and qualify for capital gain or loss treatment.

Twelve Years Ago, F Persuaded His Daughter to Join in the Family