Corporate E&P is $100,000. Cindy’s tax basis in her shares is $1,000,000 ($5,000 per share). She receives $800,000 in exchange for her 50 redeemed shares. IGNORING the “correct” answer, would Cindy PREFER that the redemption be classified as a distribution or as an exchange?

Answer rating: 100% (QA)

Ignoring the tax implications Cindy would prefer the redemption to be classified as an exchange Here... View the full answer