Priv. Ltr. Rul. 201405005 (Oct. 22, 2013)

(taxpayer proposed to transfer ownership of S corporation from two co-equal owners to key employees; IRS determined that profit on redemption of co-owners' shares in return for notes will be treated as capital gain in co-owners' hands and will be spread-out over term of notes; no gain to S corporation; S corporation entitled to deduction for interest paid on notes; notes do not constitute second class of S corporate stock).