Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,305
My question and your comment....
I do not see how the book value is making your gains tax free.... did you have a huge loss? It does not seem correct as you say you have basis in the stock... a loss would reduce your basis...
So, please explain how your S corp can have earnings and those earnings are not taxable? Or provide a link...
I do not see how the book value is making your gains tax free.... did you have a huge loss? It does not seem correct as you say you have basis in the stock... a loss would reduce your basis...
So, please explain how your S corp can have earnings and those earnings are not taxable? Or provide a link...
I would ask what your S corp shares earn? IOW, you do not have to take a salary if the S Corp is throwing off some big divis... If they are good, then why sell your shares? (except for it being a huge part of your NW)....
The shares have been paying a 5% dividend and gaining about 8% per year above that. Because of the below book value formula, the gains and dividends end up being tax free - unless the company is sold. It would sell for 2 to 3 times book value, but this is not my call. I would have a very significant capital gain and all financial concerns would be satisfied in that event.
The shares have been paying a 5% dividend and gaining about 8% per year above that. Because of the below book value formula, the gains and dividends end up being tax free - unless the company is sold. It would sell for 2 to 3 times book value, but this is not my call. I would have a very significant capital gain and all financial concerns would be satisfied in that event.