Questions from Individual Taxation

Q: When might a shareholder have to rely on the not essentially equivalent

When might a shareholder have to rely on the not essentially equivalent to a dividend test in arguing a stock redemption should be treated as an exchange for tax purposes?

Q: Why do you think the tax law imposes constructive stock ownership rules

Why do you think the tax law imposes constructive stock ownership rules on stock redemptions?

Q: Which members of a family are included in the family attribution rules

Which members of a family are included in the family attribution rules? Is there any rationale for the family members included in the test?

Q: What is the difference between a sales tax and a use tax

What is the difference between a sales tax and a use tax?

Q: Ilya and Olga are brother and sister. Ilya owns 200 shares

Ilya and Olga are brother and sister. Ilya owns 200 shares of stock in Parker Corporation. Is Olga deemed to own Ilya’s 200 shares under the family attribution rules that apply to stock redemptions?

Q: How does the tax treatment of a partial liquidation differ from a

How does the tax treatment of a partial liquidation differ from a stock redemption?

Q: What is meant by the term double taxation of corporate income?

What is meant by the term double taxation of corporate income?

Q: Why might a shareholder who is also an employee prefer receiving a

Why might a shareholder who is also an employee prefer receiving a dividend instead of compensation from a corporation?

Q: In general, what is the concept of earnings and profits designed

In general, what is the concept of earnings and profits designed to represent?

Q: True or False: A calendar-year corporation has positive

True or False: A calendar-year corporation has positive current E&P of $100 and an accumulated deficit (negative) E&P of $200. A cash distribution of $100 to the corporation’s sole shareholder at year...