A shareholder's holding period of property acquired in a stock redemption begins on the date of the distribution.

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According to the IRS regulations, a shareholder's holding period for property acquired in a stock redemption begins on the date of the distribution. This means that the holding period does not begin on the date the stock redemption agreement is signed or on the date the shareholder receives payment for redeemed shares.

A Shareholder's Holding Period of Property Acquired in a Stock