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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Sold my business! Taxes? Date: 2/21/2000 9:56 AM
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<<Until you sell the stock, you don't have any gain to report, or pay taxes on. It's simpler that way. Imagine that, our government doing things the simple way!

I reply:

He won't have to report the stock's appreciation until he sells, but remember, he received the stock in exchange for his business. That was a sale. He realized a gain to the extent the value of the stock he received (at the time he sold the business) exceeded his basis. He will owe taxes on the stock appreciation when he sells it. Sales of businesses can trigger tax issues of some complexity, so I'll also advise seeking the advice of a professional, even though most options probably evaporated when the sale was consummated>>

And to add to the complexity of the issue, the stock is RESTRICTED. Therefore, some event must occur before the shares can be released and sold...which will also impact this transaction.

Your best bet it a qualified tax pro to review all of the documents.

TMF Taxes
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