Which of the following redemptions normally will not qualify for sale treatment?
A)A partial liquidation with the stock redeemed from a corporate shareholder
B)A redemption from an estate to provide cash to pay death taxes
C)A redemption that reduces taxpayer ownership from 30 percent to 20 percent
D)A redemption of all the stock that the taxpayer owns

Question

Quizplus · Accepted Answer

A partial liquidation with the stock redeemed from a corporate shareholder typically does not qualify for sale treatment because corporate shareholders often do not meet the requirements for sale or exchange treatment under the partial liquidation rules.

Which of the Following Redemptions Normally Will Not Qualify for Sale