In Order for a Redemption or Partial Liquidation to Qualify

question 56

True/False

In order for a redemption or partial liquidation to qualify for exchange treatment, the distribution must not be essentially equivalent to a dividend.The approach used by the governing provisions in determining dividend equivalency is the same whether the transaction is a redemption or partial liquidation.

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Definitions:

Sheet Music

Written notation that represents musical compositions through symbols, including notes and rhythms, intended for performance.

Square

A four-sided polygon with all sides of equal length and angles that are right angles, also represents equality in various contexts.

Sufficient Condition

A condition or set of conditions that, if met, ensures the occurrence or truth of another condition.

Equal Length

Describes two or more objects or segments having the same measurement from end to end or boundary to boundary.