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Richard, Attorney
Category: Business Law
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Experience:  32 years of experience practicing law and a businessman.
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Re Getting Long Term Capital Gain Treatment on Sale of an

Resolved Question:

Re: Getting Long Term Capital Gain Treatment on Sale of an Asset (Company/LLC)

By June 1, 2010, I will have owned the company in question, (EIN Granted 5/28/09), for more than one year.

I am arranging to sell 75% of this company, and would like to achieve Long Term Capital Gain Treatment on the sale, while commencing to accept payments , now.

Can I use an “Installment Sale Method”, to begin accepting payments, while not ‘transferring the ownership/equity Interest’ until the ‘one-year’ condition (and perhaps a financial target, as well,?) is met?


Can you provide another viable method to use to achieve the favorable long-term gain treatment?

Thank you
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard replied 6 years ago.

Good evening. An installment sale now will not solve your problem, because the sale would be before the 12 month period and therefore you would not be eligible for LTCG treatment. The best way for you to structure this would be to document the amounts you get now as loans...then after June 1, 2010, you could complete your sale and repay the loans from the sale proceeds.



I hope this has given you the guidance you were seeking. I wish you the best of luck!


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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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