Final answer:
The attribution rules for determining how a redemption should be treated involve considering the ownership held by related parties, the length of time the stock has been held, and whether the redemption involves an exchange of property.
Step-by-step explanation:
The attribution rules of the three out of five tests for determining how a redemption should be treated are as follows:
- A. The percentage of ownership held by related parties: This rule considers the percentage of ownership that related parties, such as family members or business associates, hold in the company. If the redemption is made to reduce or eliminate the ownership of related parties, it may be treated differently for tax purposes.
- B. The length of time the stock has been held: This rule looks at the duration for which the shareholder has held the stock. If the stock has been held for a certain period, it may be eligible for more favorable tax treatment.
- D. Whether the redemption is in exchange for property: This rule examines whether the redemption involves an exchange of property or not. If the redemption is purely a cash transaction, it may be treated differently compared to a redemption involving property.
Therefore, the correct answer is E. A, B, and D only.