Posts from February 2014.
In a recent private letter ruling, PLR 201405005, the IRS validated a succession plan implemented by a Subchapter S corporation to transition share ownership from retiring co-owners to certain key employees. An S corporation is a small business corporation which has made an election to be taxed under Subchapter S of the Internal Revenue Code and which, among other things, may not have more than one class of stock.
Specifically, the IRS concluded that profit on a redemption of the owners' shares by the company for notes will:
1. be taxed to them as capital gain reportable on the ...
Posted in: Federal Tax, Income Tax