In short
Stock attribution rules treat a person as owning stock actually owned by certain family members, partnerships, estates, trusts and corporations, so ownership tests can't be avoided by spreading shares around.
Key takeaways
- For stock redemptions, family attribution covers a spouse, children, grandchildren and parents, but not siblings.
- Family attribution can be waived in a complete redemption if the shareholder keeps no interest for 10 years.
- Related-party loss rules use a separate list of related parties.
Where it's tested
REG: C Corporation Taxation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A corporation owns 30% of the stock of another domestic corporation and receives a $100,000 dividend. Ignoring the taxable income limitation, what is the dividends-received deduction?