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 has acquired the stock six years ago for $190,000. Foxruns 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.

Answer rating: 100% (QA)

Here are the alternatives available to Thomas and how they would impact his taxable income 1 Treat t... View the full answer