Page 1
Page 1
Started By
Message
locked post

Company has 10 million in cash. Can you...

Posted on 8/31/11 at 9:12 am
Posted by zeebo
Hammond
Member since Jan 2008
5193 posts
Posted on 8/31/11 at 9:12 am
(no message)
Posted by Chad504boy
4 posts
Member since Feb 2005
166114 posts
Posted on 8/31/11 at 9:13 am to
Of course.
Posted by zeebo
Hammond
Member since Jan 2008
5193 posts
Posted on 8/31/11 at 9:15 am to
Sell the shares for 150 million and some how
Pay only long term cap gain on that cash,
Or do u distribute it to share holders and
Pay ordinary tax rate in the 35percent range
Vs 15 percent?

Suggestions?
Posted by barry
Location, Location, Location
Member since Aug 2006
50337 posts
Posted on 8/31/11 at 9:23 am to
Sounds like a homework problem.
Posted by Mid Iowa Tiger
Undisclosed Secure Location
Member since Feb 2008
18577 posts
Posted on 8/31/11 at 10:54 am to
Isn't the dividend tax rate still at 15%? Why not pay a 1x dividend?

Posted by TROLA
BATON ROUGE
Member since Apr 2004
12291 posts
Posted on 8/31/11 at 11:22 am to
The cash should be irrelevant to taxes. I hope this isnt the way the question is worded.. If you sell the company for 150 million then the cash on hand and from the sale would be distributed to the stockholders. The cash onhand could be rolled into the stock sale but either way the Tax will be based on the profit made from the sale..
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 8/31/11 at 11:27 am to
quote:

Sounds like a homework problem.


This. If it were real then the OP would be asking an attorney, not the OT.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 8/31/11 at 12:33 pm to
quote:

Isn't the dividend tax rate still at 15%? Why not pay a 1x dividend?


This, most likely.

However, if you have a business worth that much, you should get a real accounting firm that will answer questions like this.

Cheaping out on accountant is a bad idea.
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 9/1/11 at 9:05 am to
Not enough info to make an intelligent recommendation. Does the company have earnings and profits? How did the company get $10 million in cash and shares worth $150 million?
Posted by GimmieSomeGlitter
GreenBOW ALABAMA!
Member since Aug 2011
491 posts
Posted on 9/1/11 at 10:13 pm to
Sounds like you need to be getting some of that invested.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram