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The sole shareholder of ABC Co . purchased the shares of the company in 2 0 1 6 for $ 2 5 , 0 0

The sole shareholder of ABC Co. purchased the shares of the company in 2016 for $25,000 and has recently valued the shares at $150,000. In preparation to sell the company to an arm's-length party, the shareholder decided not to issue the usual annual dividend of $20,000. What type of tax planning is the shareholder engaging in?

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