Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.
Taha is closely held by eight family members. Taha purchased investment land 12 years ago for $100,000. The land was recently appraised at a FMV of $3 million. A buyer has offered to pay cash for the land. Because the shareholders need the cash, they plan to have Taha distribute the land to them as a dividend. They will then sell the land and recognize a capital gain taxable at the 15 percent preferential individual rate.

  • CreatedNovember 03, 2015
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