The gross estate of Raul, decedent, includes stock in IrisCorporation (E & P of $8,000,000) valued at $6,000,000. At thetime of his death, Raul owned 60% of the Iris stock outstanding andhe had a basis of $840,000 in the stock. The death taxes andfuneral and administration expenses related to Raul’s estate amountto $2,000,000, and the adjusted gross estate is $16,000,000. Theremainder of the Iris stock is owned by Monica, Raul’s daughter andsole heir of his estate. What are the tax consequences to Raul’sestate if Iris Corporation distributes $6,000,000 to the estate inredemption of all of its stock in the corporation
