Tax Sections of Stock Agreements Are Pivotal in Purchase Deals
August 15, 2024 – ArticleBloomberg Tax
Tax attorneys Zack Nolan and Daniel Cousineau authored, "Tax Sections of Stock Agreements Are Pivotal in Purchase Deals" in Bloomberg Tax.
Excerpts:
The US Supreme Court’s unanimous ruling in Connelly v. United States highlights the importance of understanding the tax portions of stock purchase agreements, especially key areas such as recitals, definitions, and purchase price mechanics.
A crucial issue in Connelly was whether a stock-purchase agreement could set the value of the company shares for federal estate tax purposes. Two brothers who co-owned a family business had executed the agreement that directed the business to redeem the shares of the first brother to die.
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