I have a fairly large amount of money owed to me by my current employer that will be paid to me next year. I would like to utilize that money to start my own business. Is there a way to take that money and directly invest it into my new business without having to pay taxes on the disbursment? I am not looking to avoid taxes on money for my own consumption, I am just trying to make the most the resources that I have to work with.
If you are staying with your current employer, no there is not. If you are leaving your current employer, maybe there is. If your business has already been formed then there is not in either circumstance.
If you are staying with your current employer, no there is not. If you are leaving your current employer, maybe there is. If your business has already been formed then there is not in either circumstance.
Sounds like you should look into Section 1031 of the Internal Revenue Tax Code - dealing with 'Like-Kind Exchanges'.
Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized.
If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Sounds like you should look into Section 1031 of the Internal Revenue Tax Code - dealing with 'Like-Kind Exchanges'. Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Compensation is definitely not section 1031 eligible.
Interesting question ccurro11. You will most likely have to pay taxes on all the income you make but I recommend you consult an attorney for advice. They will be able to assess your individual situation and let you know what your options are. Good luck!
Does anybody else have experience with this tax issue that could help ccurro11?
Balboa Capital | Window Shopper | 11/17/2011 - 3:14 pm
jbeidle | Contributor | 9/2/2009 - 11:13 pm
CrestCapital | Creator | 9/11/2009 - 11:54 am
jbeidle | Contributor | 9/15/2009 - 4:47 pm
JamieD | Former Moderator | 9/2/2009 - 1:37 pm
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