This preview shows page 1. Sign up to view the full content.
Unformatted text preview: for tax treatment? Explain your response. After reading this weeks materi as l I learned that for the Corporate shareholders their stock redemption is treated as dividends; while the noncorporate shareholders stock redemption are treated as a sale. They do not have the same tax preferences, and the stock redemption that have been treated as a sale will have capital gains that may be offset by capital losses and the basis of the shares redeemed reduces the amount of income recognized. However the stock redemption treated as dividend basis of the shares redeemed will not reduce the dividend amount. Reference: Anderson, Pope, and Kramer (2011), Prentice Halls Federal Taxation 2011: Corporations, Partnership, Estates & Trusts, Pearson Education, Inc...
View Full Document
This note was uploaded on 10/04/2011 for the course ACCOUNTING AC 430 taught by Professor Johndavis during the Spring '09 term at Kaplan University.
- Spring '09