I am not suggesting that the acquisition is not a good deal for all involved. However, for a transaction of this size, one needs to additionally worry about the undesired “partner” that shares in all our bounty. This “partner” is the tax man. By triggering the transaction in 2012, before the new federal investment tax, the new possible income taxes that are likely necessary to resolve the “fiscal cliff”, and the new possible California taxes that will be decided on Election Day in a week, Lucas is well advised to record the gain and the taxes now, and give his “partner” a little less.
This issue, and related suggestions regarding what to do about it, are in this article.