The election of Joe Biden on November 2, 2020 created one of the great tax-planning stampedes of most practitioners’ lifetimes. Biden had run on a platform of increasing capital gains rates from 20% to 40% on gains more than $1 million. He also planned to reduce the estate and gift tax exclusion from the current level of $11 million+ per… Read More
Current Situation For the last two years, whenever anyone asked me about saving taxes on the sale of a business, I had a stock piece of advice: “Sell before the end of 2020”. We are living in a historically low tax environment in which we are also experiencing record government budget deficits. Even before the pandemic and the multiple trillion-dollar… Read More
Many business owners who want to sell their businesses have not engaged in tax planning prior to the sale. We will briefly discuss both sales to third-parties and sales to insiders – i.e. key employees or family members. Sales to Third-Parties There are two basic forms of the transaction – a sale of the stock or a sale of the… Read More
Every once in a while, the IRS attempts to achieve large results without the benefit of legislation. Such a time is now, and the IRS has in its sights family business transfers. By far the greatest source of wealth in this country is business ownership. Bill Gates, Steve Wozniak, Warren Buffet, Ross Perot, Elon Musk, Michael Bloomberg, and Mark Zuckerberg… Read More
Say your business generates $400,000 per year in profits, is worth $2 million and your tax basis in your S corporation stock is $400,000. You have a key employee (KE) who wants to buy the business. You have managed your finances prudently over the years and you don’t need top dollar from the sale. KE has helped you build the… Read More
