u/HazMattStunts

I am new to the buyout scenario.

My question is about tax liability.

Of course capital gains tax applies at the time of a “cash buyout”. However, I am curious if any other “stock buyout” possibilities are an option. Do you know other options for buyout?

**Rule:** If the buyout is structured as a "tax-free reorganization" (you receive stock in the acquiring company instead of cash), your tax basis is carried over to the new shares. You do not pay taxes until you eventually sell the new acquiring company's stock.

Please forgive the ignorance, just looking for anyone with previous buyout experience.

Thank you.

I am new to the buyout scenario.

My question is about tax liability.

Of course capital gains tax applies at the time of a “cash buyout”. However, I am curious if any other “stock buyout” possibilities are an option.

Rule: If the buyout is structured as a "tax-free reorganization" (you receive stock in the acquiring company instead of cash), your tax basis is carried over to the new shares. You do not pay taxes until you eventually sell the new acquiring company's stock.

Please forgive the ignorance, just looking for anyone with previous buyout experience.

Thank you.