Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-28-2011, 03:09 PM
Junior Member
 
Join Date: Mar 2011
Posts: 1
capital gains when sold company

I had an internet company (company A) and sold it to a corporation (company B). In exchange they gave me restricted shares. And the amount of shares they gave me was based on the stock price of the company. So if I sold the company for $50,000, and the stock price of the company at the date of sale was $1.5. They gave me $50,000/1.5 = 33,333 shares. Just an example. That was back in 2008. I sold the stock last year (in 2010) at a $0.3 even though when I acquired the shares, the price of the stock was $1.5. How do I calculate cost basis? How do I calculate my capital gains? Is my cost basis $0? Note that I sold the shares at a price less than the price of company B's stock at the date that my company (company A) was purchased.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How does the IRS treat the gains from Flipping off mulitiple foreclosure properties bought and sold within a short period of time? TaxGuru Capital Gains 0 12-29-2010 03:01 PM
Avoiding Capital Gains jenngood S-Corporation 0 02-27-2010 08:31 AM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM
S-corp capital gains flystevens S-Corporation 1 09-22-2008 10:34 PM
Capital Gains kmk21248 Capital Gains 2 05-01-2008 02:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning