Replies to post #95417 on Innovation Pharmaceuticals Inc (IPIX)

[BooDog]

Quarterly payments like many do helps.

[Yooper61]

BH, I thought you were a buy and hold on CTIX? You only have a tax liability if you sold last year, or are you referring to your gains on other stocks?

[TOB]

I'm curious about the same question.

For those CPA types out there... did the Menon transfer to Aurda constitute a taxable event? My gut says yes and that would be a huge drag on share price. 50M+ dollars in taxable income = big tax liability if that is how the IRS sees it. He and his lawyers will need to generate significant $$$ if they are getting hit with taxes. It's been too long since I've been in that level of detail so perhaps others can offer a more educated opinion. -BioHedge

An added twist is the transfer of the 8,000,000 shares from Aruda Inc to the individuals Wayne and Mary Aruda 2/05/15

I do not know the answer to this, but I suspect that this maneuver could serve to shift the taxable event into the 2015 tax year, as opposed to 2014. Thus putting off the need to pay the piper.

Alternatively, the attorneys would have a taxable event for 2014.

If this reasoning is correct, then the 2,000,000 shares transferred to the attorneys is a taxable event for 2014, but the 8,000,000 shares transferred to the Arudas is taxable for 2015. Assuming individuals incur this liability upon transfer as opposed to sale.

I'd welcome the input of a tax professional on this issue as I'm just guessing at it.