Tax Drill $-$ Sections $162$ and $163$

Complete the following statements regarding $162$ and $163$ and stock redemptions.

In redeeming its shares, a corporation may incur certain expenses such as accounting, brokerage, legal, and loan fees. Section $162($k$)$ specifically

a deduction for expenditures incurred in connection with a stock redemption. The

does not apply to amounts otherwise deductible as interest under $163,$ such as interest from debt$-$financed redemptions.