Retained Earnings after sale of an S Corp I was a minority shareholder of an S Corp in California. We have recently sold to a larger corporation. My question is about the retained earnings that I had never received through out the life of the company (5 years). I paid taxes on these earnings every year but would like to know what my options are for using them on the tax year toward the payment I received for my shares of the old company. Can I write them off entirely in the first year or as my tax advisor has been pushing me to do is write them off over 5 years?
Thanks,
J |