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Minority partner exit strategy
Old 04-25-2017, 05:52 AM   #1
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Minority partner exit strategy


I am a minority partner (~10%) in a small company.

When I retire, (<2yrs away ), I anticipate the remainder of the partners "clawing back" my shares. I actually prefer this, just to be "done" with everything, so that is not an issue. The value of those shares will likely be contested, but that is another topic entirely ......

What I am wondering is, what is the best strategy for the payout - especially for a retiree who wants to show minimal income to the IRS? I expect something like a 3-5 year payout note (each of which would be nearly our annual retirement budget) or similar - I assume this is treated as capital gains?

Are there other approaches that would be more tax-friendly?

Thanks in advance for any advice,
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Old 04-25-2017, 06:20 AM   #2
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I sold my small company stock in 3 or 4 transactions in separate years.My last stock was sold back to the company, where the company paid me monthly payments for 18 months. yes - treated as capital gains.

i don't know of any more tax friendly approaches.
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