What are the tax consequences of the redemption

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Question - Robert's gross estate includes 1,500 shares of stock of Queen Corporation (basis to Robert of $1.2 million, fair market value on date of death of $8.2 million). The estate will incur $4.4 million of death taxes and funeral and administration expenses, and the adjusted gross estate is $18 million. Oliver, Robert's son and sole heir of his estate, owns the remaining 500 shares of Queen Corporation's shares outstanding. In the current year, Queen (E&P of $10 million) redeems all of the estate's 1,500 shares for $8.2 million. What are the tax consequences of the redemption to Robert's estate?

Reference no: EM133131002

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