[Verse 1]
When shareholders want their money back today
There's four safe harbors showing us the way
Not essentially equivalent to a dividend paid
Substantially disproportionate, don't be afraid
Complete termination ends it all
Partial liquidation answers the call
[Chorus]
Four redemptions, four ways to go
Three-oh-two shows us what we need to know
Not equivalent, disproportionate too
Complete termination, partial liquidation for you
Four redemptions, memorize today
Section three-oh-two shows us the way
[Verse 2]
Attribution rules from three-one-eight
Family members' shares we calculate
Spouse and children, parents count as yours
Grandchildren too, that's what the law ensures
But family attribution can be waived
If certain conditions have been obeyed
[Chorus]
Four redemptions, four ways to go
Three-oh-two shows us what we need to know
Not equivalent, disproportionate too
Complete termination, partial liquidation for you
Four redemptions, memorize today
Section three-oh-two shows us the way
[Verse 3]
When redemptions don't meet the test
Three-oh-one distributions are what's left
Treated like dividends, that's the rule
Ordinary income, don't be fooled
But if you qualify for safe harbor protection
Capital gains treatment is your selection
[Bridge]
Three-oh-three has a special case
Estate tax redemptions take their place
When someone dies and taxes are due
This section helps the heirs get through
Stock redemption pays the estate tax bill
Section three-oh-three shows the will
[Chorus]
Four redemptions, four ways to go
Three-oh-two shows us what we need to know
Not equivalent, disproportionate too
Complete termination, partial liquidation for you
Four redemptions, memorize today
Section three-oh-two shows us the way
[Outro]
Remember the four, don't let them slip
Attribution rules, keep a good grip
Three-oh-one when you don't qualify
Three-oh-three when estate taxes are high
Tax law redemptions, now you know
Four safe harbors, watch your portfolio grow