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Author: euphoriant Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Sale of C-corp stock Date: 10/8/2000 11:02 PM
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This hasn't happened yet and hopefully won't for years, but I was wondering how it would work...

My husband own's c-corp stock with two other people. When he leaves the company he is required to give the stock back to them. He paid a very small amount for this stock. According to his contract their is no buy in (although he did pay a small amount for the stock) and no buy out of the stock. However, it does say in the contract that he would be paid the balance of his receivables, less 10%, as compensation over a 32 month period. Is this right? Can they do it this way?

Shouldn't they have to pay for the stock to get it back? Shouldn't the value of the stock be the receivables? Then they could give it in installments or lump sum, but NOT withhold taxes? And we would get long-term capital gain treatment instead of ordinary tax treatment?

Sorry for all the questions when I really don't have this issue yet, but it just seems strange to me.

Thanks,
e
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