Question
S corp redemption - effect on remaining shareholders
I have 3 shareholders in an S corp - A, B, and C. Shares of A are being redeemed out by the corp. Do the remaining shareholders B & C have a taxable event because their interests proportionately go up? Current equity breakdown is 65, 30 and 5. 65 shares redeemed from A. 35 shares remain between the other two shareholders B & C -- ownership goes to 15% and 85%. I can't find a clear answer anywhere.
