Legal Question in Business Law in Massachusetts

Can a shareholder surrender his shares without creating a tax situation for the other shareholders?


Asked on 11/18/12, 8:52 am

1 Answer from Attorneys

More information is needed to answer this question properly.

I assume you are surrendering the shares to the Corporation (not a LLC or Partnership). The only impact is if by tendering the stock results in income to the corporation. Generally, such a transaction should not result in income to the corporation or a gain to the remaining shareholders but more information is needed to determine if that is the case.

However, there could be gift tax issues for you.

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Answered on 11/18/12, 3:37 pm


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