This was an existing business which you came in and were given a share to help it grow. You received no pay while growing the business.
You can expect to pay taxes on the profit from the sale of the business. In your case, the shares were given to you, so whatever you receive will be profit. If this is only a few hundred dollars, pay the taxes on it, and move on. If it’s a significant sum, be sure to get professional help. There may be legal ways for you to avoid taxes on at least a portion of the profit. I suggest a good CPA and more particularly, one who is familiar with the type of business which was sold. In most cases, your having received no salary will have no bearing on the taxes due from the proceeds of the sale. But again, be sure to obtain professional help. I have a small amount of knowledge, but I’m not a tax expert.
26
May
What kind of taxes should you expect to pay for the sale of a portion of your business?
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One comment for “What kind of taxes should you expect to pay for the sale of a portion of your business?”
.1
Cadillacman
You can expect to pay taxes on the profit from the sale of the business. In your case, the shares were given to you, so whatever you receive will be profit. If this is only a few hundred dollars, pay the taxes on it, and move on. If it’s a significant sum, be sure to get professional help. There may be legal ways for you to avoid taxes on at least a portion of the profit. I suggest a good CPA and more particularly, one who is familiar with the type of business which was sold. In most cases, your having received no salary will have no bearing on the taxes due from the proceeds of the sale. But again, be sure to obtain professional help. I have a small amount of knowledge, but I’m not a tax expert.
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