World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Merger & Acquisition FAQ – July 2015

Q: I purchased stock from my employer under a § 423 employee stock purchase plan and received a Form 1099-B for selling it. How do I report this?

A: Under a § 423 employee stock option plan, you have taxable income or a deductible loss when you sell the stock. Your income or loss is the difference between the amount you paid for the stock (the option price) and the amount you receive when you sell it. You generally treat this amount as capital gain or loss, but you may also have ordinary income to report.

Q:  I would like to set up a Subchapter S Corporation.  How do I do this?

A:  You must first file articles of incorporation with your respective state.  Once this is done, IRS Form 2553 must be filled out to make the Subchapter S election.

Q:   Where is the best place to store estate plan documents?

A:   The best place to store estate plan documents is in a secure location that others know of and that is easily accessible. Storing the documents in a safe deposit box that a friend knows of can be a good place as long as that friend knows where to get the keys.  Hiding documents in a book or in a safe that no one has the combination for renders the documents useless to both you and those that are trying to help you.

By: Basi and Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors