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How can I avoid tax from a cash merger ?

I have shares of a private company which was acquired for cash by a public company in Jan 07. A check for about $30k will be mailed to me soon for my shares. What is the best way to avoid as much tax as possible ?

I am self employed but don’t know how much money I will earn this year. So for example, can I put all of the $30k into my SEP IRA thereby avoid paying tax on it?

Any help would be greatly appreciated.

Thanks!

It is really too late. The contribution to the SEP will help reduce taxes but you may not be able to contribute very much.

You should get some help from a competent tax advisor like a CPA.

This entry was posted on Monday, March 8th, 2010 at 4:51 pm and is filed under merger. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How can I avoid tax from a cash merger ?”

  1. Nusha says:
    March 8, 2010 at 10:13 pm

    It is really too late. The contribution to the SEP will help reduce taxes but you may not be able to contribute very much.

    You should get some help from a competent tax advisor like a CPA.
    References :

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