S-corp is buying out 2 shareholders

[schirallicpa]

Will there be tax consequences? What is better method? the 2 minority shareholders are giving up their shares in exchange for $30,000, which was their original investment in the corp. Do the shares just go back to the corp? Or do the shares get allocated back to the majority shareholders?

I'm dealing with a blistering headache with our lovely March weather ups and downs. Looking forward to April for many reasons.

thanks for your help.

[jainen]

>>What is better method?<<

You'll have to ask your client about that. So who is your client? One or both of the minority shareholders, one or more of the majority shareholders, the corporate entity, a customer or creditor, a parent or subsidiary entity, a spouse? Each stakeholder probably has a different reason to think one method is "better" than the other.