Noncorporate and corporate shareholders typically do not have the same preference for the tax treatment of a stock redemption.Explain why noncorporate taxpayers normally prefer sale or exchange treatment for a stock redemption,and why corporate taxpayers normally prefer dividend treatment for a stock redemption.

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The Answer of Noncorporate and corporate shareholders typically do not have the same preference for the tax treatment of a stock redemption.Explain why noncorporate taxpayers normally prefer sale or exchange treatment for a stock redemption,and why corporate taxpayers normally prefer dividend treatment for a stock redemption.

Noncorporate and Corporate Shareholders Typically Do Not Have the Same