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Inessa05 [86]
2 years ago
10

Mitt redeems his entire ownership of stock in Dawn Key Corp. However, Mitt's sons, Rick and Newt, own all of the remaining share

s of Dawn Key Corp. after the redemption. What are the requirements that Mitt must meet to waive the family attribution rules for this redemption
English
1 answer:
MArishka [77]2 years ago
5 0

Answer:

Stock redemption refers to a corporation buying of its own shares. This may be done via money or landed property, for the purpose of either retiring the shares or holding them as treasury stock.

Mitt must take note of the following

i. It'll be impossible that Mitt hold the office of a director or consultant for the corp.

ii. He must report to the IRS if he acquires a forbidden interest in not more than 10 years of the redemptions

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