If you are selling a business, it’s important to understand the tax implications. How you structure the transaction can determine whether the proceeds are eligible for favorable tax treatment as a long-term capital gain.
Allen Barron, Inc. and Janathan L. Allen, APC provide holistic tax, accounting and financial advisory services for business owners. With offices in San Diego, San Francisco, Las Vegas and Phoenix, we represent clients throughout California and nationwide. If you are selling a business, call 866-631-3470 for a free and confidential initial consultation.
Asset Sales And Stock Sales
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 holistic approach to mergers and acquisitions enables us to help you obtain the maximum allowable tax advantages, 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.
Contact Us For Help With Structuring A Business Transaction
For prompt and professional help concerning the tax treatment of your business transaction, talk to us.