Research Problem. Mr. Aslak owns all the stock in Shoes Inc., which owns 85 percent of Skiing
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Research Problem. Mr. Aslak owns all the stock in Shoes Inc., which owns 85 percent of Skiing Inc. Ms. Quinn, the manager of Skiing, wishes to share in the profits of the prosperous firm by buying 5 percent of its stock. Shoes Inc. then distributes its stock interest in Skiing to Mr. Aslak, who then sells a 5 percent interest in Skiing to Ms. Quinn for \(\$ 15,000\). Assume the sale of stock to a key employee has a valid business and corporate purpose.
How would the IRS view the above transaction?
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Related Book For
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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