by Mike Baker | Mar 23, 2024
How do you pay zero federal tax on up to $10,000,000? Invest in a qualified small business. General speaking, a qualified small business is: A domestic C corporation; Which, at all times up to the time immediately following the issuance of your stock, had less than...
by Mike Baker | Mar 6, 2024
Let’s say it’s March 2024 and you have some stock options you would like to grant members of your team. You’ve heard that you can rely on a tax code Section 409A valuation for up to 12 months. You received a valuation of $0.30 per share effective as of December 31,...
by Mike Baker | Jan 12, 2024
Let’s say you have some intellectual property (IP) that you’d like to give to a corporation in exchange for shares of its common stock. The IP and stock are both worth $10,000 and you have tax basis in the IP of $800. Normally such an exchange would...
by Mike Baker | Jan 10, 2024
It’s 1099 season. For those of you who paid a law firm for legal services this year, here are three tips: 1. Payment for legal services goes in box 1 of Form 1099-NEC. Do not use Form 1099-MISC. Form 1099-MISC box 10 “Gross proceeds paid to any...
by Mike Baker | Dec 26, 2023
Let’s say you’re the majority shareholder of ABC, Inc., a C corporation, which just sold substantially all of its assets in a taxable asset sale. The deal consideration consists of three parts (i) $30M to be paid at closing, (ii) $3M which is being held...
