Oriole Corporation, a privately-held company, has one class of voting common stock, of which 1,000 shares are
Question:
Oriole Corporation, a privately-held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:
Larry Byrd........................................... 400
Paul Byrd (Larry's son) .................... 200
Lady Byrd (Larry's daughter) .......... 200
Cal Rifkin (unrelated) ...................... 200
Total................................................1,000
Larry is considering retirement and would like to have the corporation redeem all of his shares for $400,000.
a. What must Larry do or consider if he wants to guarantee that the redemption will be treated as an exchange?
b. Could Larry still act as a consultant to the company and still have the redemption treated as an exchange?
Step by Step Answer:
a Because this is a complete termination ofhis direct ownership interest in Oriole Corporatio...View the full answer
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
