When your client informs you that they intend to sell their business, they may be expecting to simply collect the profits and celebrate. The unfortunate news you will have to break to them is that the tax consequences can significantly reduce their proceeds—which is why they will need a tax strategy in place before moving […]
Selling your business may not be as profitable as you expect, especially if you have not taken the tax consequences into consideration. Business owners need to be prepared with a tax strategy before selling some or all of their shares or business assets. One lesser-known tactic for reducing these taxes is applying the concept of
Eight Tax-Saving Ways to use Personal Goodwill Read More »
As a tax planner, when a client approaches you about selling their S corporation, one of the first questions to ask is whether they are selling the stock or the assets of the business. What is the difference from a tax perspective? An asset sale requires you to allocate the assets into different classes, which
Tax Strategies for Selling an S Corporation: Failing the §302 Stock Sale Tests Read More »
As part of the tax planning process, business owners looking to sell their S corporation first need to establish whether they are selling the stock or the assets of the business. What is the difference from a tax perspective? An asset sale will involve assigning each business asset to an asset “class,” which then determines
Selling an S Corporation: Using a Stock Redemption for Tax Benefits Read More »
Even if you have never assisted a client with the sale of a business, as a tax planner you have the potential to provide tremendous value in the planning process. Many business owners may also be navigating a sale for the first time and likely have little insight into the tax implications and how to
Tax Strategies for Selling an S Corporation: Planning for an Asset Sale Read More »
Business owners looking to sell their S corporation may start to get tangled up in all the details, especially if they are a first-time seller. This can lead to overlooking one key part of the sales process: tax planning. The decisions you make in structuring the sale will have a direct effect on later tax
Selling an S Corporation: How to Maximize Tax Savings in an Asset Sale Read More »
Business losses have become all-too common during COVID-19. Though new tax benefits have been introduced, understanding whether these will benefit a specific business can be a complicated process. One common COVID-era benefit is the Paycheck Protection Program (PPP) loan. Businesses celebrated the news that PPP funds are tax exempt, so they wouldn’t have to pay
Business Losses and PPP Loans: Understanding Tax Implications for S Corp Shareholders Read More »