INDEX TO TAX RESEARCH FILE

Item Page Reference
Determine the Facts 1
Locate the Applicable Authorities 1
Evaluate Authorities 1
Analyze the Facts in Terms of Applicable Authorities 2
Communicate Conclusions and Recommendations to Others 3
Memorandum-to-the-File 11
Client Letter 12

Determine the Facts
Parent Corporation has owned 60% of Subsidiary Corporation’s single class of stock for a number of years. Tyrone owns the remaining 40% of the Subsidiary stock. On August 10, of the current year, Parent purchases Tyrone’s Subsidiary stock for cash. On September 15, Subsidiary adopts a plan of liquidation. Subsidiary then makes a single liquidating distribution on October 1. The
and either
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(2) the distribution is by such other corporation in complete
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cancellation or redemption of all its stock, and the transfer of
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all the property occurs within the taxable year; in such case the
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adoption by the shareholders of the resolution under which is
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authorized the distribution of all the assets of such corporation
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in complete cancellation or redemption of all its stock shall be
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considered an adoption of a plan of liquidation, even though no
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time for the completion of the transfer of the property is
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specified in such resolution; or
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(3) such distribution is one of a series of distributions by
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such other corporation in complete cancellation or redemption of