
Taxes on Equity Compensation - SparksZilla
https://www.holloway.com/g/equity-compensation/sections/taxes-on-equity-compensation
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throw555away
Forgive the throw away, but I am in the middle of this now

I purchased a domain for my business 10 years ago

The domain cost $500,000

The business did well for a while, but eventually died

Someone just offered to buy the domain

The offer is $1 million

But he is offering $1 million in preferred stock in a new company as if I was
an investor.

He says that the company is worth $10 million

So I would be getting 10% ownership of the company - no cash.

Do I have to pay taxes on this or can I wait until the stock is public or the
company if acquired?

Should I ask for stock option instead?

How do I ensure I do not lose the domain?

Should I lease it for X years with option to buy to ensure if the company goes
bankrupt it would not be seen as an asset? Would leasing affect my taxes?

Thank you

