christine toretti dating - Pro rata liquidating distribution

by  |  08-Aug-2019 09:36

I’ve written about liquidation preferences (and participating preferred) before, as have most of the other VC bloggers (and several entrepreneur bloggers.) However, for completeness, and since liquidation preferences are the second most important “economic term” (after price), Jason and I decided to write a post on it.

Plus – if you read carefully – you might find some new and exciting super-secret VC tricks.

704(c)(1)(B)); (3) the distribution is within seven years after a contribution of appreciated property (see Sec. He has never contributed property other than cash to the LLC.

737); or (4) the distribution is part of a disguised sale (see Sec. A loss may be recognized upon a distribution in liquidation of a member's interest if no property other than cash, unrealized receivables, and inventory is received. Nontaxable liquidating distribution of cash and property: Z LLC is liquidating. To liquidate his interest, Z distributes to R $15,000 cash plus real property with a $50,000 FMV.

Is there anything else that you should think about before you pump your fist in triumph? There is another important thing: the liquidation preference.

Community Discussion