(6) For purposes of subdivision (ii) of subparagraph (1) of this paragraph, the number of shares of stock held by a private foundation on May 26, 1969 (or received pursuant to a will or irrevocable trust to which section 4943(c)(5) applies), redemption of which alone would sufficiently reduce such foundation's proportionate share of a corporation's total outstanding stock in order for the foundation not to be liable for tax under section 4943 may be determined by application of the following formula: View Image
X = Number of shares to be redeemed.
Y = Maximum percentage of outstanding stock which private foundation can hold without being liable for tax under section 4943.
PH = Number of shares of stock held by private foundation on May 26, 1969, or received pursuant to a will or irrevocable trust to which section 4943(c)(5) applies.
SO = Total number of shares of stock outstanding unreduced by any redemption from a person other than the private foundation.