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Hi from just answer. I'm PDtax, and can assist.
When you sell the s corp, you have 90k in basis in your loan. When you sell, the entry is not made on the books of the corp.
When you sell, you will release the loan to the corporation as sorry of the sale. You can ask that your loan beer repaid for 90k, then sell the shares for the $30k remainder. You figure your gain or loss on the $30k.
Please advise if that covers things, or if you need more assistance. Positive feedback is appreciated. I'm PDtax.
Hi again. PDtax here.
The only way you can write off the loan to Equity is to exchange the debt for equity on the books. It also means you should execute satisfaction papers for the loan. You need that backup to avoid issues later on. That will create the basis in the shares you are looking for, and you can sell the shares for $120k and the note need not be part of the contract.