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 USTaxAdvising Your Own Question
USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
58296935
Type Your Tax Question Here...
USTaxAdvising is online now
A new question is answered every 9 seconds

I recenty completed mediation proceedings where the settlement

This answer was rated:

I recenty completed mediation proceedings where the settlement required that the stock being purchased (over the next 5 years) be put into escrow until paid for. It is a closely held Sub S corp with only two shareholders. The majority owner is buying the minority shares. As such, who will be responsibe for that portion of the taxes? thx

USTaxAdvising :

Hello,

Customer:

hi. Can you see my chat box?


 


 

USTaxAdvising :

who will be responsibe for that portion of the taxes? - the seller, who has sold the shares (minority partner) to the buyer (majority partner), will be responsible for the tax.

USTaxAdvising :

yes


 

USTaxAdvising :

the seller will be the one who will be liable for tax

Customer:

OMG

Customer:

No wonder he agreed to settle.

Customer:

ok. ty.

USTaxAdvising :

I assume you are the seller?


 

Customer:

yeah - and after 14 years together he orchestrated my replacement by his sons and then started refusing to do distributions and hitting with huge tax bills

USTaxAdvising :

sorry to hear that. Did I answer your question?

Customer:

hittine me with huge tax bills to get me to give it back. I got an attorney, they got it to mediation and he agreed to an amount - now he can just have me pay morein taxes than I'm going to get


 

Customer:

yes ty

Customer:

good night

USTaxAdvising :

No problem.


 

USTaxAdvising and other Tax Specialists are ready to help you