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Form 302

Form 302

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Video instructions and help with filling out and completing Form 302

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Instructions and help about form 302 under mvat meaning

in this video we're going to talk about the tax treatment of stock redemptions so when a corporation repurchases some of its stock from one of its shareholders we have to answer a question is it going to be considered a seller exchange in which case some of the shareholders basis is going to offset the gain or is it going to be considered a distribution of the shareholder under Section 301 in which case it could be considered a dividend right so the shareholders probably going to want it to be considered a sale or exchange so that some of the shareholders basis in the stock can offset any gain so let me give you an example let's say that we have a corporation called clean water incorporated that provides that let's say you make water bottles at desalinate ocean water so you can just take a bottle and go to the ocean dip it in and you've got clean water so you've got this corporation here and it has two shareholders let's say that you are one of the shareholders and you own 60 shares an

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