Code Sections-MC2- Stock redemptions

Question 1

301

Answer 1

distribution of property- applies if 302 is inapplcable

Question 2

302 (a)

Answer 2

distributions in redemption of stock

exchange (sale) treatment

Question 3

302 (b)

Answer 3

distributions in redemption of stock
redemptions treated as exchanges
(1) not essentially equivalent to a dividend
(2) substantially disproportionate
(3) complete termination
(4) partial liquidation

Question 4

302(c)

Answer 4

distributions in redemption of stock
constructive ownership
(1) reference to 318
(2) waiver of family attribution

Question 5

302 (d)

Answer 5

distributions in redemption of stock

redemption treated as distribution under 301 if 302(a) is inapplicable because no 302(b) condition is satisfied

Question 6

302(e)

Answer 6

distributions in redemption of stock

partial liquidation defined

Question 7

303

Answer 7

redemption to pay death taxes

Question 8

304

Answer 8

redemption through related corporations

Question 9

311

Answer 9

taxability to distributing corporation

(a) no loss recognized on the distribution of cash or depreciation (in value) of property
(b) gain recognized on the distribution of appreciated (in value) property

Question 10

312 (a)

Answer 10

effect on earnings and profits

reduction of E&P for 301 distributions

Question 11

312 (b)

Answer 11

effect on earnings and profits

301 distributions of appreciated property

Question 12

312 (n)(7)

Answer 12

effect on earnings and profits

adjustment of E&P for redemptions

Question 13

316(a)

Answer 13

dividend defined,

(a) GR: applies if 302(a) is inapplicable

Question 14

317(a)

317(b)

Answer 14

other definitions

(a) Property
(b) redemption: acquisition of corporations own stock from a shareholder in exchange for property

Question 15

318

Answer 15

constructive ownership of stock