Question for the tax pros in this group:

We recently did a transaction where part of the consideration offered to the seller were shares in an existing company.

There is now some uncertainty as to whether or not this exchange of shares would constitute a taxable event for the buyer. The argument there is that the basis for the shares was lower than the nominal price at which they were exchanged. The preference is to establish this as not be a taxable event, given that there were not cash proceeds to the buyer to use for paying any taxes.