MEWDS (Multiple Evanescent White Dot Syndrome) is a rare, unilateral, self-limiting inflammatory disease that afflicts young women more than men in a 4:1 ratio. Despite the lack of treatment, the prognosis is excellent. Our patient is the typical age and gender.
To qualify for sale or exchange treatment, a stock redemption generally must result in a substantial reduction in a shareholderâs ownership interest in the corporation.In the absence of this reduction in ownership interest, the redemption proceeds are taxed as dividend income. The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).
A 1031 exchange is a tax-deferred exchange, not a tax-free exchange. If you complete a 1031 exchange, you can defer the capital gains taxes on the sale of your existing property. However, if you later sell the replacement property, you will have to pay capital gains taxes (if you in fact have a capital gain).