Stock basis after redemption. (Regulations).The Service has issued proposed regulations (REG-150313-01) on the treatment of the basis of redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. stock when a distribution in redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. is deemed a dividend. The proposed rules would amend the regulations under Secs. 302,304, 704, 861, 1371, 1374 and 1502 to provide guidance on the dividend issue and on stock acquisitions by related corporations treated as redemption distributions. The proposed regulations affect shareholders whose stock in a corporation is redeemed or acquired by a corporation related to the stock issuer. A public hearing is scheduled for Feb. 20, 2003; written comments and requests to speak at the public hearing must be received by Jan. 30, 2003. Send submissions to: CC:ITA:RU (REG-150313-01) Room 5226 Internal Revenue Service P.O. Box 7604 Ben Franklin Station Washington, DC 20044 or electronically via www.irs.gov/regs. |
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