Want to create an interactive transcript for this episode?
Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Tax Issues With Secondaries
Description: Tax Issues With Secondaries Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are tax issues associated with a secondary sale. Here’s a list of issues to consider: Gains on secondary sales are taxed based on the holding time of the shares. If less than one year, then ordinary income tax rates apply. If longer than one year then the capital gains tax rate applies. If the purchase is made at a premium price, then additional tax issues arise. If made to an employee then the IRS may...