This digital document is an article from The Tax Adviser, published by American Institute of CPA's on September 1, 1995. The length of the article is 674 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Co-owners of a corporation should structure their buy-sell agreement so that the selling owner's stock can be purchased by either the corporation or the other stockholder. By providing this option, the agreement avoids the possibility of a constructive dividend because the purchase will not be characterized as an unconditional obligation. Providing the option also ensures the owners that they will have a buyer for their share of the business.

Citation Details
Title: Avoiding constructive dividends when a corporation purchases stock under a buy-sell agreement.
Author: Albert B. Ellentuck
Publication: The Tax Adviser (Magazine/Journal)
Date: September 1, 1995
Publisher: American Institute of CPA's
Volume: 26 Issue: n9 Page: 570(1)

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