united-states, taxes, sharesSuppose there are three founding members of a company, call them A, B, and C, that divide the shares of the corporation, 1/3, 1/3, 1/3. I don’t see any potential for taxability here.
Suppose after a few months, they decide to reallocate shares as 30%, 35%, 35% because A put in less sweat equity than the others. Is this transaction taxable to B and C?
Suppose they decide to reallocate the shares based on the fact that A, B, and C put up differing amounts of money. Is this transaction taxable given that money has been introduced?
Suppose the company expands by offering new shares, but A, B, and C keep their original shares (same numbers, lesser percentage). Does infusion of new capital create tax liabilities for A, B, and C.
What, if any, other corporate transactions (other than outright sale of shares) by A, B, and C could result in a tax liability to A, B, and C?
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