I am being given (as a key employee) 5% of an LLC in the run up to it being valued at $20 million during a round of investment.
If my basis is 0, am I liable for capital gains on $1m?
If my basis is $1m, I presume I will receive a W2 for that amount?
Which neatly brings me to my primary question: not being a wealthy individual at all, how on *earth* will I be able to deal with a tax situation like this?
Some general pointers would be very much appreciated. I also need to seek formal representation from a tax attorney, so if you are in Dallas, TX, charge reasonable rates and have experience with these matters, please do drop me your details.