Assume regarding this question that you are an advisor to your Client, a wealthy individual. On March
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Question:
- Assume regarding this question that you are an advisor to your Client, a wealthy individual. On March 1, 2022, your Client informs you that they invested in a corporation that holds cryptocurrencies. Your Client told you that they contributed $200,000 in cash towards forming the corporation, named IBX, and received 80,000 shares of IBX, making them an 80% shareholder.
- Your client wants to know what tax liability they will have with receiving the 80,000 shares of IBX in exchange for the $200,000 that they paid and the 80% shareholder ownership in IBX. Assume that there are only 2 shareholders of IBX after the corporate formation, and that your Client and the other shareholder own 50% equity each.
- Please discuss the possible tax consequences to your client.
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
Posted Date: