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Ask Dr. Fiona Chen Your Own Question
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Capital Gains and Losses
Satisfied Customers: 398
Experience:  Former IRS Revenue Agent
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I was asked to consider 30% carry back for 1 year with a 30%

Customer Question

I was asked to consider 30% carry back for 1 year with a 30% capital gain. What does this mean in laymen terms and what are the tax implications if I agree?
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The accountant will be able to help you. Please tell me more, so we can help you best.
Customer: I am just selling my business for 1.2M and buyer with good record is offering me the above
JA: Is there anything else important you think the accountant should know?
Customer: No
Submitted: 3 months ago.
Category: Capital Gains and Losses
Expert:  Dr. Fiona Chen replied 3 months ago.

Dear Customer,

It is interesting. I have been a CPA for this long and professionally former IRS agent to have examined numerous small to mid- and large size businesses. I also do litigation support of business disputes. And your posting has been here for 52 minutes without any experts picking it up.

I have never heard of this term in purchasing and/or selling a business or in any tax reporting context. I just searched on line and did not find any context for this term you are posting here.

Would you please provide more details in the context of the deal you are trying to make? Give some specific numbers to illustrate this 30% and carry back and what dollar signs will be with and without such feature? -- Just from the surface, it sounds like there is something wrong here.

Regards,

Fiona

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP