§ 351(g)(2)(C)(i)

the right or obligation is disregarded under (A)

UNDECIDED

0 of 2 settled

  1. 1

    § 351(g)(2)(C)(i)

    ANY OF

    A right or obligation shall not be treated as described in clause (i), (ii), or (iii) of subparagraph (A) if—

    “it may be exercised only upon the death, disability, or mental incompetency of the holder, or” § 351(g)(2)(C)(i)(I) unless Step 2 clause (i)(I) does not apply UNDECIDED
    “in the case of a right or obligation to redeem or purchase stock transferred in connection with the performance of services for the issuer or a related person (and which represents reasonable compensation), it may be exercised only upon the holder’s separation from service from the issuer or a related person.” § 351(g)(2)(C)(i)(II)

    “Reasonable” implies facts and circumstances. Cited by Reg. § 1.351-2(e), Reg. § 1.354-1(f), Reg. § 1.355-1(d), Reg. § 1.356-7(c), Reg. § 1.356-7(e)

    Research 1
  2. 2

    § 351(g)(2)(C)(ii)

    clause (i)(I) does not apply

    ANY OF

    Clause (i)(I) shall not apply if the stock relinquished in the exchange, or the stock acquired in the exchange is in—

    “a corporation if any class of stock in such corporation or a related party is readily tradable on an established securities market or otherwise, or” § 351(g)(2)(C)(ii)(I)
    “any other corporation if such exchange is part of a transaction or series of transactions in which such corporation is to become a corporation described in subclause (I).” § 351(g)(2)(C)(ii)(II)