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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54848
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I am to be given 10% of a company in the USA as a reward. The

Customer Question

I am to be given 10% of a company in the USA as a reward. The company is pre-revenue with products in development.......however there is a subsidiary which is 40% owned by my company (therefore I have 4% of this) with revenue of $30M with an EBITDA of around 3.
Should I make a small payment vfor these shares to avoid tax?
What tax liabilities do I have?
How is this best handled?
The company is a Limited liability Company.
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good afternoon. You will have income equal to the value of the interest you are receiving. If you pay something for it, you will only have income equal to the fair market value in excess of the amount you pay. The fair market value of the interest being received, like any valuation, is probably subject to a wide variation.



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