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I have a client selling his business - a Single Member LLC…

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I have a client...

I have a client selling his business - a Single Member LLC filing as an S-Corp. Allocation is Fixed Assets $140,000 Goodwill $560,000 Payment is $300,000 at closing, $250,000 Note Payable over 5 Years AND $150,000 Common Stock in Buyer's Corp.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

How do I record all this? Have heard Sec 721 allows for him to NOT report/pay taxes on the $150K stock until he sells it?

Submitted: 2 months ago.Category: Tax
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Answered in 1 hour by:
12/15/2017
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,819
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from just answer. I'm PDtax. I can assist.
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Customer reply replied 2 months ago
Where is your response? All I can find anywhere is to rate you.
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 months ago
Technical issues. Back online now.
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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 months ago
IRC 721 covers non-negotiable of gain for assets contributed to a partnership. Is that what you are planning to do with the stock in buyer's corp?
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Customer reply replied 2 months ago
I don't understand your service at all. I'm done. I get text messasges with addy's to view your answer, but there is no answer.
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 months ago
Please review my response. It just posted.
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PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,819
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