Qualified_Stock_redemption_Sec_303

Qualified_Stock_redemption_Sec_303 - Red Corporation (E...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic: Sec 303: Distributions to pay death taxes (qualified stock redemption) Edward died owning 20% of the total Red Corporation shares outstanding (basis of $600,000), and the Red stock is included in his estate at its date of death value of $1 million. Edward’s adjusted gross estate is $2.5 million, and the death taxes and funeral and administrative expenses total $500,000.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Red Corporation (E & P of $6 million) distributes land (fair value of $500,000, basis of $340,000) in redemption of one-half of the estates stock in the corporation. The estate sells the land five month later for $520,000. Required : What are the tax consequences to Red Corporation and to the estate as a result of the redemption and sale?...
View Full Document

This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.

Ask a homework question - tutors are online