Which of the following is an incorrect statement regarding the application of the § 318 stock attribution rules?
A) An individual is not deemed to own the shares owned by his or her siblings.
B) Stock owned by an estate is deemed to be owned in full by a beneficiary.
C) Stock owned by any shareholder owning 50% or more of a corporation's stock is deemed to be owned in full by the corporation.
D) Stock owned by a partnership is deemed to be owned proportionately by a partner.
E) None of the above.

Question

Quizplus · Accepted Answer

Stock owned by an estate is not deemed to be owned in full by a beneficiary. Instead, the stock is attributed proportionally to the beneficiaries based on their respective interests in the estate. The other statements are correct regarding the application of § 318 stock attribution rules.

Which of the Following Is an Incorrect Statement Regarding the Application