§ 1.303-3. Application of other sections.
134 words·~1 min read·
/us/cfr/t26/s§ 1.303-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The sole effect of section 303 is to exempt from tax as a dividend a distribution to which such section is applicable when made in redemption of stock includible in a decedent's gross estate. Such section does not, however, in any other manner affect the principles set forth in sections 302 and 306. Thus, if stock of a corporation is owned equally by A, B, and the C Estate, and the corporation redeems one-half of the stock of each shareholder, the determination of whether the distributions to A and B are essentially equivalent to dividends shall be made without regard to the effect which section 303 may have upon the taxability of the distribution to the C Estate.
(b)See section 304 relative to redemption of stock through the use of related corporations.