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 redemption of stock by a corporation can be treated as a distribution in part or full payment in exchange for the stock (i.e., a sale or exchange) and gains or losses to stockholders from such redemptions will be capital gains or losses, rather than distributions under.ynopsis-effect of liquidations on shareholders A complete liquidating distribution is treated as a payment in exchange for stock (Code Sec. 331(a)). Generally, therefore, the redemption of stock by a dissolving corporation results in a capital gain or loss to the shareholders.