S Corp Redemption Decision Illustrates Advantage of Cross-Purchase - Think Outside the Tax Box

S Corp Redemption Decision Illustrates Advantage of Cross-Purchase

Recent Decision on S Corp Redemption Illustrates Advantage of Cross-Purchase Over Redemption

There are some significant lessons in the recent decision in the case of Estate of Michael Connelly. Sorry to spoil the surprise, but what I think the big one is is that co-owners of S corporations (and other sorts of entities) should consider a cross-purchase rather than redemption when they have a buy/sell agreement. That is particularly true if life insurance funds the arrangement.

Keep reading to find out why.

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