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I am to be given 10% of a company in the USA as a reward. The

Customer Question
company is pre-revenue with products...
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.
David
Submitted: 6 years ago.Category: Tax
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Answered in 8 hours by:
12/1/2010
Tax Professional: Richard, Tax Attorney replied 6 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,808
Experience: 29 years of experience as a tax, real estate, and business attorney.
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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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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.

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