A purchaser has agreed to purchase the shares of a qualified small business corporation.Which of the following is not applicable?
A)The seller may be eligible for the capital gains deduction.
B)The purchaser may try to discount the value of the shares if a future sale of the assets may result in a tax liability.
C)The sale will result in the immediate taxation of the corporation, and the after-tax proceeds will be paid to the seller.
D)The purchaser will assume the corporation's current UCC values.

Question

Quizplus · Accepted Answer

The sale of shares in a qualified small business corporation will generally not result in immediate taxation of the corporation. Rather, the seller may be eligible for the capital gains deduction and the after-tax proceeds will be paid to the seller. Choices A, B, and D are all applicable aspects of such a transaction.

A Purchaser Has Agreed to Purchase the Shares of a Qualified