A owns 60 of the 100 outstanding X shares, with a $600 adjusted basis. B owns the other 40 shares. If A wants to sell
A owns 60 of the 100 outstanding X shares, with a $600 adjusted basis. B owns the other 40 shares.
If A wants to sell a few shares and avoid distribution treatment, will A want to sell to B or to X?
How will B feel about A’s choice?
Will A’s and B’s concerns change if X is an S corporation with no E&P account?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A will want to sell to X to avoid distribution treatmentThis is because a sale to X will be treated ...
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Step: 2
Step: 3
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Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
