A Capped Earnout Can Delay Basis Recovery Even When the Maximum Looks Unlikely
The contingent-payment rules can use the contractual maximum rather than the seller’s expected payout.
TOPIC COLLECTION
Earnout reporting
A focused reading path from The Exit Ledger. Start with the question closest to your situation, then review the linked sources and documentation steps.
An Uncapped Three-Year Earnout Uses a Different Basis-Recovery Framework
A fixed payment term without a determinable maximum can require annual allocation of basis.