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MequonCPA, Certified Public Accountant (CPA)
Category: Tax
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Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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if a shareholder in a c corp sells his entire stock for $25Million

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if a shareholder in a c corp sells his entire stock for $25Million and the acquiring company assumes liabilities of $13Million, is the shareholder taxed on $35Million less his basis in stock ?
Hi and welcome to JustAnswer:

If it is a stock sale, the shareholder reports the amount received for his/her shares ($25 million). In theory, the buyer has factored in the corporate debt in determining the value of the shares.

The answer will change if $13 million in debt is to the shareholder or if the shareholder owes the corporation $13 million.
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