C.M. Read and the tax consequences of divorce-related redemptions

Article Abstract:

The author criticizes the Tax Court case Read which concerned the issue of IRC section 1041 nonrecognition of gain in corporate redemptions of jointly owned stock in the context of divorce settlements.

Redemption (Law)

---

Proposed regulations would prevent government whipsaw and permit spouses to choose the tax consequences of divorce-related stock redemptions

Article Abstract:

The author discusses proposed IRS and Treasury Dept regulations regarding the taxation of stock redemptions taken in divorce settlements.

Stock redemption

---

Small Business Job Protection Act raises questions concerning the treatment of an S corporation shareholder in a partial liquidation

Article Abstract:

The Small Business Job Protection Act of 1996's repeal of IRC section 1371(a)(2) was intended to benefit S corporations but has unintended negative tax consequences for stockholders in a partial liquidation. S corporations are now required to report dividend income arising because of a partial liquidation but S corporations cannot claim a dividends received deduction. Therefore, under the Act, S corporation stockholders must pay ordinary income tax on the partial liquidation dividends. Several suggestions for corrections to this section are included.

S corporations, Liquidation

Similar abstracts:

• Abstracts: "What sort of soil do rhododendrons like?" - comparing customer and employee responses to requests for product-related information
• Abstracts: New proposed code sec. 367(b) regulations govern the carryout of tax attributes in reorganizations involving foreign corporations
• Abstracts: Recent amendments to Code sec. 357: Congress responds to "artificial basis creation". Avoiding gain on excess liabilities in a Code sec. 351 exchange

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.