corporate tax notes test 2

corporate tax notes test 2 - NOTES TEST 2 SECTION 306 In...

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NOTES TEST 2 SECTION 306 In case of sale of section 306 stock, the shareholder generally has OI on the sale = to the FMV of the preferred stock on the date of the stock dividend. 1. OI is treated as a dividend for purposes of the 15 % or 0% maximum tax rate on 2. No loss is recognized on the sale of P/S; the uncovered bases in P/S sold is added to the bases of the shareholder’s C/S. In case of a redemption of section 306 stock, the issuing corporation redeems the P/S from the shareholder, the redemption proceeds constitute dividend income to the extent of Section 306 stock is stock other than common that 1. Is received as a nontaxable stock dividend 2. Is received tax free in a corporate reorganization or separation to the extent that either the effect of the transaction was substantially the same as the receipt of a
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This note was uploaded on 04/05/2012 for the course ACCT 4221 taught by Professor Crumbley,d during the Spring '08 term at LSU.

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corporate tax notes test 2 - NOTES TEST 2 SECTION 306 In...

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