One way to do that would be to tax dividends received by shareholders (the
beneficial owners of a corporation) as income and to tax liquidation or redemption of
stock proceeds as de facto
sales of the
stock equivalent to a third party
sale of
stock by the shareholder.
Excluded Property: The rules for like - kind exchanges do not apply to property held for personal use (such as homes, boats or cars); cash;
stock in trade or other property held primarily for
sale (such as inventories, raw materials and real estate held by dealers);
stocks, bonds, notes or other securities or evidences of indebtedness (such as accounts receivable); partnership interests; certificates of trust or
beneficial interest; choses in action.