Question

17. Describe the requirements for waving the family attribution rules in the case of a complete...

17. Describe the requirements for waving the family attribution rules in the case of a complete redemption. Attach Internal Revenue Code Section

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

IRC code 302(b)(3)

If a shareholder terminates his or her entire stock ownership in a corporation through a stock redemption, the redemption will qualify for sale or exchange treatment. The attribution rules generally apply in determining whether the shareholder's stock ownership has been terminated.

For waiving off the family attribution rules in case of complete redemption both the follwing requirements have to be met:

(1) The former shareholder shall have no interest(including that of an officer, director or employee), except that of a creditor, in the corporation after redemption for atleast 10 years

(2) The former shareholder files an agreement to notify the IRS of any prohibited interest within the 10-year post-redemption period and to retain all necessary records pertaining to the redemption during this time period.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
17. Explain the limitation on the destructibility of partnership losses by a partner. Attach Internal Revenue...
17. Explain the limitation on the destructibility of partnership losses by a partner. Attach Internal Revenue Code Section
What does Family attribution rules mean? There is a example: Kim owns 100% of a corporation....
What does Family attribution rules mean? There is a example: Kim owns 100% of a corporation. Kim’s son, John, is married to Susan. Kim’s ownership is attributed to John, and he’s treated as owning 100% through attribution. John’s interest can’t again be attributed to his wife, Susan. In tax purpose: What does "attribution" mean? What does "John’s interest can’t again be attributed to his wife" mean? please explain
Explain how the accumulated-earning tax may apply to corporate money set aside to fund a Sec....
Explain how the accumulated-earning tax may apply to corporate money set aside to fund a Sec. 303 redemption. Attach Internal Revenue Code Section
# Please select a business case scenario and complete the Project Plan (Windows Server Deployment Proposal...
# Please select a business case scenario and complete the Project Plan (Windows Server Deployment Proposal for medium-sized college). The Business Case The scenario will include your proposal for a Windows 2012 R2 Server Deployment. You will complete a section of the proposed solution. You will add an introduction and summary analysis section as a final deliverable. Describe the technical and business reasons for each choice, citing other resources as appropriate. The Windows Server 2012 or Server 2012 R2 operating...
Required information Chapter 17 Case: Reducing Ambiguity in Business Requirements The number one reason projects fail...
Required information Chapter 17 Case: Reducing Ambiguity in Business Requirements The number one reason projects fail is bad business requirements. Business requirements are considered “bad” because of ambiguity or insufficient involvement of end users during analysis and design.     A requirement is unambiguous if it has the same interpretation for all parties. Different interpretations by different participants will usually result in unmet expectations. Here is an example of an ambiguous requirement and an example of an unambiguous requirement: • Ambiguous requirement:...
Complete the requirements for each of the following independent cases:     Case A. Dr Pepper Snapple Group,...
Complete the requirements for each of the following independent cases:     Case A. Dr Pepper Snapple Group, Inc., is a leading integrated brand owner, bottler, and distributor of nonalcoholic beverages in the United States, Canada, and Mexico. Key brands include Dr. Pepper, Snapple, 7-UP, Mott’s juices, A&W root beer, Canada Dry ginger ale, Schweppes ginger ale, and Hawaiian Punch, among others.     The following represents selected data from recent financial statements of Dr Pepper Snapple Group:     DR PEPPER SNAPPLE GROUP, INC....
General John Jones is married with two children. His family consists of his wife Jen Jones...
General John Jones is married with two children. His family consists of his wife Jen Jones and his children James Jones and Jackie Jones. This case study is mainly surrounding John’s earnings, but Jen also works and receives a salary of $80,000 which SHOULD be included in the overall taxable income calculation and included on Form 1040 James Jones is 12 years old and lives at home. His parents fully provide for him Jackie Jones is 23 years old full-time...
Case 17-7 Mesmerizing Marketers Mesmerizing Marketers (MM) is a marketing company that offers a variety of...
Case 17-7 Mesmerizing Marketers Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically: • MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each functions independently of the other offerings. •...
To complete each assignment, you will need to read the case study. Assume that the client...
To complete each assignment, you will need to read the case study. Assume that the client described in each case study meets criteria for a DSM-5 disorder. You will then consult the DSM-5 criteria and write 1-2 detailed paragraphs in which you assign a primary diagnosis for the client and justify that diagnosis. In this section you should reference EACH of the DSM-5 criteria for the diagnosis you are assigning and provide evidence from the case study for or against...
To complete each assignment, you will need to read the case study. Assume that the client...
To complete each assignment, you will need to read the case study. Assume that the client described in each case study meets criteria for a DSM-5 disorder. You will then consult the DSM-5 criteria and write 1-2 detailed paragraphs in which you assign a primary diagnosis for the client and justify that diagnosis. In this section you should reference EACH of the DSM-5 criteria for the diagnosis you are assigning and provide evidence from the case study for or against...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT