Tax Preparation Issue - Need How to Advice
I currently have a tax advisor, but we have stumbled upon an issue and wanted some advice how to make this work.
In 2013 i started a Corp with a friend as 50/50 ownership. The company made no money for the first 6 months. I than bought out the other owner, so i now was a 100% ownership. The company than made about 30g for the rest of the year. The issue is my friend 'the old owner' and his tax advisor do not believe they should be liable for any profits as they were not paid any profits or now owner of the company any more. My tax advisor believes he is right, but we are looking for a way, because my advisor believes the previous owner is liable or a percentage of the taxes owed for that year, regardless if he was not the owner at the time it made profits. So i am looking for a way for myself to claim all of the taxes do, so my friend isnt liable, as he didnt accept any profits. The Corp was initially set up MN as my friend is from there. The business is located in SD where i am from and where the location operates.