There are two types of business sales:

• Stock sales: If you are selling a capital asset, the IRS treats the proceeds as a short-term or long-term capital gain. Long-term gains offer a lower effective tax rate.
• Asset sales: If you are selling an asset used in day-to-day operations, the IRS taxes the proceeds at a higher rate as ordinary income.

Whether a sale is treated as a stock sale or an asset sale depends on how the asset is classified and how you structure the sale. Our integrated approach to mergers and acquisitions enables us to help you obtain the maximum allowable tax advantages and reduce capital gains while protecting your from IRS tax audits resulting from misclassified assets.

Allen Barron, Inc., provides a full range of accounting financial advisory services. As an experienced tax lawyer, Janathan Allen provides you the protections of attorney-client privilege while applying extensive tax knowledge and legal expertise to your transaction.