4. Lastly, how would you structure this deal if it were you (assuming you wanted to make it happen despite the historic negligence involved)?
Balloon payment 12 months at 0% interest contingent on distributions from Holding Company A exceeding 30k? Otherwise, remainder to paid via balloon payment in 24 months contigent on the same?
part of this is a financial question.
you mention "historic negligence" and "handshake agreement". for these reasons see a lawyer. usually in these situations what is best for one party from a tax standpoint is not the best for the other from a tax standpoint. don't know what you mean by historic negligence but we don't render legal advice. and many of us have seen handshake agreements go sideways even between those who would trust the other with their lives.
