05-04-2006, 02:45 AM
| |||
| |||
 Re: Patent exchange for stock "Doug" <leon9704[at]gmail.com> wrote: - quote - > A taxpayer sold her patent to a company for 40,000 shares of
Because it's not a nontaxable exchange.> common stock (has a fmv of $2m and represents 3% ownership). > > Question: what's the tax treatment of this transaction? > > Under which code? > It seems to be a nontaxable exchange--- the taxpayer will > have $0 basis in the stock after the transaction and will > recognize long-term capital gain upon sale of the stock. > But I can't find a irc code that talks about this. - quote - > The only relevent code I can find is section 351. However
Then look at Sections 354 and 368.> that requires the taxpayer to have control of the company > and it doesn't apply here. Stu << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
|
#-1
05-03-2006, 06:05 AM
| |||
| |||
| Patent exchange for stock A taxpayer sold her patent to a company for 40,000 shares of common stock (has a fmv of $2m and represents 3% ownership). - quote - > Question: what's the tax treatment of this transaction? Under which code? It seems to be a nontaxable exchange--- the taxpayer will have $0 basis in the stock after the transaction and will recognize long-term capital gain upon sale of the stock. But I can't find a irc code that talks about this. The only relevent code I can find is section 351. However that requires the taxpayer to have control of the company and it doesn't apply here. You help is appreciated. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| exchange, patent, stock |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Stock exchange prices are not updating coxwall: Using Money 2004 (UK) - for the last two days, the stock exchange prices have not been updating. Is this a general problem - if not, can I cure... | Microsoft Money | 1 | 06-02-2007 07:33 AM | |
| Tax free exchange of stock shares Wade: On nov 12 2006 McDonals (MCD) corp offered a tax free exchange for Chipotle (CMGB) shares using a ratio of .8879 shares of CMGB for each share of... | Microsoft Money | 4 | 11-26-2006 09:20 PM | |
| Patent exchange for stock Doug: I'm a taxation student and I need your help to clarify an issue in a case I'm doing now: What's the tax treatment of a taxpayer's acquisition of... | Taxes | 17 | 05-05-2006 03:07 AM | |
| Exchange fees when you sell a stock??? johnnyk: I have 2004 deluxe and am trying to enter some sell of stock but MS Money doesn't calculate the exchange fee so the total is never right. And if I... | Microsoft Money | 1 | 01-08-2005 04:35 AM | |
| How do you record a partial stock exchange pfl22@mindspring.com: I am using MSMoney standard 2003 edition. Back in 2001 ATTstockholders were allowed to exchange a portion of their shares for ATT Wireless shares.... | Microsoft Money | 2 | 01-15-2004 03:09 AM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
