Hello...my name is XXXXX XXXXX X am a Certified Public Accountant. I look forward to assisting you with your tax question.
If you hold stock in the company and are not selling the stock to the new investor, then you will not have a tax consequence. Instead, once you sell the stock you will include the gain/loss on your personal income tax return.
in the year of sale...
Will there be any forms I will need to submit to the IRS after I receive the stock?
and to also clarify, I do not yet have the stock. So my concern is that if I have it issued to me (rather than options) then I might be receiving something of value in the eyes of the IRS.
Or is there simply no value until I sell it?
No...if the company is structured as an S-Corporation or Partnership, you will receive a schedule K-1 at the end of each tax year reporting the profit/loss for your 4% interest. You will claim that income or expenses on your personal tax return. If the company is a C-Corporation, then you will not have any taxable effect, unless the Corporation pays you a dividend or in the year you actually sell the stock.
Great, it's a C-Corp so I should be good to go.
Receiving the stock/Purchasing stock has no tax implication...it is when you sell/liquidate the stock that a gain/loss would be included in your tax return.
If you choose to take a dividend out of the Corporation, you would pay tax on the dividend in that year.
Otherwise, you are a 4% owner of the Corporation and have no tax consequence until you sell the stock.
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