Does refusal to make tax distributions equal shareholder oppression? That’s the subject of this week’s New York Business Divorce.
Continue Reading Phantom Income, Oppression, and Common-Law Dissolution
phantom income
Delaware Case Provides Drafting Lesson for “Phantom” Income Provision in Buy-Out Agreement
By Peter A. Mahler on
A recent Delaware Chancery Court decision teaches an important lesson for drafters of buy-out agreements involving pass-through entities and taxes on “phantom” income allocated to a former owner. Learn more in this week’s New York Business Divorce.
Continue Reading Delaware Case Provides Drafting Lesson for “Phantom” Income Provision in Buy-Out Agreement
Beware Taxes on Phantom Income When Entering Into Shareholder Buy-Out Agreement
By Peter A. Mahler on
Tax analysis is a critical part of the business divorce attorney’s job when it comes to fashioning a shareholder buy-out agreement that, among other things, protects the selling shareholder from personal income tax liability on non-distributed or “phantom” net income that later may show up on the shareholder’s Schedule K-1. This week’s New York Business Divorce looks at a recent decision by Manhattan Supreme Court Justice Judith Gische in a fight over the tax consequences of a buy-out settlement of a corporate dissolution.
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Continue Reading Beware Taxes on Phantom Income When Entering Into Shareholder Buy-Out Agreement