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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I have a client that was 89% owner of an llc. On the books

Customer Question

I have a client that was 89% owner of an llc. On the books is a loan to him for 100K ( Asset) and loans to others for 500K (Liabilities). ABC company comes in and in exchange for 70% of ownership pays all the debt and forgives the loan to the partner. What are the tax consequences to the llc and ultimately to the original owner.
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.
Hi from just answer. I'mCustomer and can assist.The transaction you describe involves more detail and analysis than the question suggests. Type of entity, who sold their Equity, hard assets acquired, allocation of sale proceeds, all have impact.An accurate answer will take some time to assemble. I will post an offer to assist, one that charged for an hour plus of professional time. I will likely want to review the sale contract as well.