How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 55594
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Re Getting Long Term Capital Gain Treatment on Sale of an

Resolved Question:

Re: Getting Long Term Capital Gain Treatment on Sale of an Asset (Company/LLC)

By June 1, 2010, I will have owned the company in question, (EIN Granted 5/28/09), for more than one year.

I am arranging to sell 75% of this company, and would like to achieve Long Term Capital Gain Treatment on the sale, while commencing to accept payments , now.

Can I use an “Installment Sale Method”, to begin accepting payments, while not ‘transferring the ownership/equity Interest’ until the ‘one-year’ condition (and perhaps a financial target, as well,?) is met?


Can you provide another viable method to use to achieve the favorable long-term gain treatment?

Thank you
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard replied 7 years ago.

Good evening. An installment sale now will not solve your problem, because the sale would be before the 12 month period and therefore you would not be eligible for LTCG treatment. The best way for you to structure this would be to document the amounts you get now as loans...then after June 1, 2010, you could complete your sale and repay the loans from the sale proceeds.



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button NOW, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.


If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard and 2 other Business Law Specialists are ready to help you