Night Cat posted:

Hello goons, I am trying to buy a couple of retail stores from my current employer.

I live in Texas, and my current boss has offered to sell his stores to my brother and I for a little less than $1 million. Working with a business advisor provided by my city, I have worked out a business plan, a financial plan, and set up a business account with the IRS. My father in law is good with investing around $150k for a business loan to buy the business.

My trouble comes from corporate: they want new owners to have $100k cash separate from the business loan for the purpose of buying into the corporation (and refurbishing the existing stores I imagine). My FIL has two rental properties he wouldn't mind selling to invest into this new business venture, but he doesn't want to lose money to taxes. My brother and I have been working on this business plan for a year now and this hurdle has me worried it was all a waste of time.

My questions are:
1. Is it possible for my FIL to sell his rental properties without incurring taxes if he invests (or becomes a partner) in my business?
2. Do I need to make my FIL a partner in my company? He is very risk averse and does not want to lose his retirement money at age 70 because of my business.

I recognize I will almost certainly need a lawyer and tax person to help me, I'm mostly posting here to get any advice about this so I don't waste any more time or money. Thanks, goons!