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Demiter Corporation has 100,000 shares of common stock outstanding. Leonard owns 18,000 shares, Leonard's cousin owns 2,000 shares, Leonard's brother owns 1,500 shares, and Leonard's
Demiter Corporation has 100,000 shares of common stock outstanding. Leonard owns 18,000 shares, Leonard's cousin owns 2,000 shares, Leonard's brother owns 1,500 shares, and Leonard's grandson owns 2,000 shares. On May 5 of the current year, Demetier redeems all of Leonards shares. Please discuss the potential tax treatment of the redemption.
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