Section 302 Irc

If a corporation redeems its stock within the meaning of section 317 b and if paragraph 1 2 3 4 or 5 of subsection b applies such redemption shall be treated as a distribution in part or full payment in exchange for the stock.

Section 302 irc. Internal revenue code section 302 b 3 distributions in redemption of stock. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. 302 b redemptions treated as exchanges.

The question whether a distribution in redemption of stock of a shareholder is not essentially equivalent to a dividend under section 302 b 1 depends upon the facts and circumstances of each case. Distributions in redemption of stock. Section 302 c 2 b provides that section 302 c 2 a shall not apply 1 if any portion of the stock redeemed was acquired directly or indirectly within the 10 year period ending on the date of the distribution by the distributee from a person the ownership of whose stock would at the time of distribution be attributable to the distributee under section 318 a or.

It does not matter whether the company calls the acquisition of its stock a redemption. The international codes i codes are the widely accepted comprehensive set of model codes used in the us and abroad to help ensure the engineering of safe sustainable affordable and resilient structures. Internal revenue code 302.

Unless the requirements of this code provision are satisfied your redemption will be taxed as a distribution dividend under 301. For purposes of this part stock shall be treated as redeemed by a corporation if the corporation acquires its stock from a shareholder in exchange for property whether or not the stock so acquired is cancelled retired or held as treasury stock. In this context a redemption occurs when a company acquires some or all of its stock from shareholders in exchange for property.

For more detailed codes research information including annotations and citations please visit westlaw. One of the facts to be considered in making this determination is the constructive stock ownership of such shareholder under section 318 a. Enter 302 promulgated by the service in response to repeated attempts by taxpayers to avoid dividends.

302 a general rule if a corporation redeems its stock within the meaning of section 317 b and if paragraph 1 2 3 4 or 5 of subsection b applies such redemption shall be treated as a distribution in part or full payment in exchange for the stock. Distributions in redemption of stock on westlaw.