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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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How does the IRS treat private stock vs publicly traded stocks

Customer Question

How does the IRS treat private stock vs publicly traded stocks ?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I invested in a private company and I wanted to know how the sale of the stock would be treated
JA: Is there anything else the Accountant should be aware of?
Customer: I am just wondering of their are different rules for private vs public traded stock ?
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
HI §864(b)(2)(A)I am foreign person. So the above applies to me. §864(b)(2)(A) I need to know if my private shares will be treated to same as public traded shares
Expert:  Tax-Scholar replied 1 year ago.
Hello and thanks for using Just Answers! IRC 864(b)(2)(A) apply to all securities and stock. It does not matter if the are publicly traded or closely held. You'll want to make sure the investment is taxed as a corporation and not a partnership. Let me know what other questions you have or additional facts surrounding the proposed transaction. Happy to help more.

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