The redemption must be part of a plan. The shareholder may be a corporation. The
ID: 2544336 • Letter: T
Question
The redemption must be part of a plan.
The shareholder may be a corporation.
The redemption may be pro rata.
The distribution may not be made in the year after the plan was adopted.
With respect to a partial liquidation under Sec. 302(b)(4), which of the following statements are false?The redemption must be part of a plan.
The shareholder may be a corporation.
The redemption may be pro rata.
The distribution may not be made in the year after the plan was adopted.
A. 2 and 4. B. 3 and 4. C. 1 and 2. D. 1 and 3.Explanation / Answer
With respect to a partial liquidation under Sec. 302(b)(4). following statements are false 2. The shareholder may be a corporation. and 4. The distribution may not be made in the year after the plan was adopted.
Because it is Partial Liquidation which does not need and Shareholder Corporation because they continue to get ther right in the company as it is partila liqudation and the second is The distribution may not be made in the year after the plan was adopted. it may to distibute in same taxable year in which plan approved or within the following year which make the 4 th statement false
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