What are the tax implications of allowing an investor to contribute $100,000 to my corporation for a 20% share? I currently own 100% of the business. Simply put, what are the pros and cons of allowing someone to invest from a tax perspective?

Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter6: Professional Accounting In The Public Interest
Section: Chapter Questions
Problem 34.4EC
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What are the tax implications of allowing an investor to contribute $100,000 to my corporation for a 20% share? I currently own 100% of the business. Simply put, what are the pros and cons of allowing someone to invest from a tax perspective?

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