MEWDS (Multiple Evanescent White Dot Syndrome) is a rare, unilateral, self-limiting inflammatory disease that afflicts young women more than men in a 4:1 ratio. Despite the lack of treatment, the prognosis is excellent. Our patient is the typical age and gender.
To qualify for sale or exchange treatment, a stock redemption generally must result in a substantial reduction in a shareholderâs ownership interest in the corporation.In the absence of this reduction in ownership interest, the redemption proceeds are taxed as dividend income. The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).
Itappears likely that the 10% penalty will apply to any taxable distribution unless one ofthe other exceptions applies. Death of Owner. Any payment received upon the death of a holder (owner) is anexception to the 10% penalty tax. When an annuity contract is owned by a non-naturalperson, the exception for the death of an owner applies upon the death of the primaryannuitant.