Under Code § 382, If Either an Owner Shift or Equity

question 10

Multiple Choice

Under Code § 382, if either an owner shift or equity structure shift has occurred, the test for an "ownership change" must be made.Which is true of an owner shift?

• A)An owner shift occurs only when a 5 percent shareholder (determined before or after the change) buys or sells stock.
• B)For purposes of the owner shift, the effect of a stock redemption on the stock ownership percentage is ignored.
• C)Owner shift can occur if a purchaser not owning 5 percent acquires sufficient stock to meet the 5 percent threshold.
• D)All of the above are true.

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