F
Fred8888
Guest
Minnesota
Hi,
I invested in my brother-in-law's company 9 years ago. It was a dollar amount and our agreement was that I would own 1% of his 5% ownership in the company. I own no capital stock in the company, just a verbal agreement with him. My question, can my brother-in-law just pay me what it is worth now and I would pay the capital gains tax (15%) and he would then adjust his cost basis or would I have to claim the money as Income and pay a higher tax rate (personal)?
Thanks a lot!
Hi,
I invested in my brother-in-law's company 9 years ago. It was a dollar amount and our agreement was that I would own 1% of his 5% ownership in the company. I own no capital stock in the company, just a verbal agreement with him. My question, can my brother-in-law just pay me what it is worth now and I would pay the capital gains tax (15%) and he would then adjust his cost basis or would I have to claim the money as Income and pay a higher tax rate (personal)?
Thanks a lot!