Video: Issuance, Reacquisition, and Resale of Stock

In this lesson, Nick Palazzolo, CPA, unpacks the intricate details of stock transactions from a corporate tax perspective, focusing on the issuance, reacquisition, and resale of company stock. Nick maps out scenarios where corporations can issue stock for property without the burden of tax consequences, and points out the critical tax considerations for both the company and the shareholders. Going through the mechanics of stock issuance for cash or other assets, Nick explains when and why a company might buy back its own shares, leading to treasury stock, and the implications of such moves on earnings per share and other financial metrics. In the world of treasury stocks, gain or loss recognition rules play out differently, and Nick clarifies these nuances alongside vivid examples, ensuring these key concepts around corporate equity transactions are clear and well-understood.