Foxrun Company has three equal shareholders, Thomas, Kimberly, and Jennifer. Kimberly and Jennifer are Thomas’s daughters. On September 2 Foxrun redeemed all of Thomas's stock in return for

$250,000. Thomas had acquired the stock six years ago for $190,000. Foxrun’s current E&P was $325,000. Thomas would like to minimize his federal income tax liability.

Explain the alternatives available to him and how they would impact his taxable income.