Chapter 2 - Gross Income and Exclusions - easytaxexam

1. Generally gross income doesn’t include distributions from a corp. of its own stock. (§305(a))(i.e., stock splits). a. If the distribution of the stock dividend doesn’t change the proportional ownership, then the dividend is not taxed… no real economic effect from div. b. Stock includes stock and stock rights and warrants. (§305(d)(1)) c. ................
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