"Jared" <google[at]tripletreesoftware.com> wrote

- quote -

Yes, it's income to you, and yes it's taxable even though
you haven't "seen" the money.

The profits you are taxed on adds to your basis in the
company.

Yes, you should look into selling the shares to someone
(probably your cheapest "out"). If necessary get an
attorney involved to protect your interests.

When you sell the shares you own, you can claim a gain or loss on those
shares based on your tax basis. So while you have to include that as income
today, you will get some amount of "loss" in a future year.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Jared" <google[at]tripletreesoftware.com> wrote:

- quote -

You are required to include in your taxable income your
percentage of the income from a a flow thru entity as well
as any other passthrough items, whether distributed or not.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

A previous employer sent me a K-1 showing about $2000 in
income (I own a tiny percentage of the company). I haven't
worked there in 5 years, and I know I will never see a dime
from this company ever again.

Is it legitimate for me to be taxed on money I will never
see? Should I pursue selling the stock back to them?

Thanks in advance.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >