Tax Planning for the Break-up of the Closely-held Business  

Upon successful completion of this course, the user should be able to:

• recognize the alternative means of transferring a partnership interest and the tax consequences for the partner and the partnership;

• identify the ordinary income and capital gain recognized from the sale of a partnership interest;

• identify the alternative strategies for a shareholder in a closely-held C corporation to either sell their stock to the other shareholders or the corporation;

• determine the requirements for using the assets of a subchapter C corporation to redeem the stock of a shareholder in a nontaxable transaction; and

• recognize the tax issues relative to an S corporation redeeming all of the shareholder's stock or a shareholder selling their stock to other shareholders in a cross-purchase agreement.