Asset sale versus stock sale, goodwill, installment sales, buy-sell agreements, family transfers, estate planning for owners, and the tax side of buying an existing business.
56 guides, each written by a CPA licensed in the US and Canada.
Business bankruptcy has significant tax consequences. Debt discharged in bankruptcy is generally excluded from income (IRC 108(a)(1)(A)).
CFO & AdvisorySelling a business triggers different tax consequences depending on whether it is structured as an asset sale or a stock/membership interest sale.
CFO & AdvisorySelling, gifting, or transferring a business triggers capital gains, gift tax, and installment sale rules. How each exit strategy gets taxed.
CFO & AdvisoryThe structure of a business exit decides what you keep. Sellers usually prefer a stock sale for capital gains; buyers prefer an asset sale for the step-up.
CFO & AdvisoryTransferring a business to family, a partner, or a buyer triggers capital gains, gift tax, and installment sale rules. How to structure it right.
CFO & AdvisorySuccession planning is the process of transferring business ownership to the next generation, to key employees, or to an outside buyer in a way.
CFO & AdvisoryBusiness succession planning involves transferring ownership to family, partners, or a third-party buyer while minimizing estate, gift, and income taxes.
CFO & AdvisoryBusiness succession planning involves transferring ownership while minimizing transfer taxes (gift tax, estate tax, capital gains tax).
CFO & AdvisoryBusiness succession planning is the process of structuring the transfer of business ownership in the most tax-efficient manner possible.
CFO & AdvisoryA buy-sell agreement controls what happens to a business interest when an owner dies, becomes disabled, retires, or wants to sell.
CFO & AdvisoryA buy-sell agreement is a legally binding contract that governs what happens to a business interest when an owner dies, becomes disabled, retires.
CFO & AdvisoryBuying a business as an asset purchase lets the buyer depreciate and amortize the purchase price, saving significant taxes over 5-15 years.
CFO & AdvisoryClosing a business means a final return with the 'final return' box checked, final payroll filings, disposing of assets, and cancelling the EIN.
CFO & AdvisoryClosing a business triggers final tax returns, asset disposition reporting, and state dissolution filings. What the IRS requires and common mistakes.
CFO & AdvisoryFor any business that sells physical products, cost of goods sold (COGS) is the largest deduction on the tax return and the primary determinant of gross.
CFO & AdvisoryFor business owners, estate and gift tax planning is not just about minimizing the federal estate tax (which applies to estates exceeding the $13.99.
CFO & AdvisoryA business owner's company is often their largest asset, but without proper estate planning. Estate planning tools for business owners.
CFO & AdvisoryThe federal estate tax exemption is $13.61 million per person (2024) but is scheduled to drop to approximately $7 million in 2026.
CFO & AdvisoryEstate tax planning is critical for business owners because a closely held business is often the largest asset in the owner's estate.
CFO & AdvisoryThe federal estate tax exemption is $13.99 million per person in 2025 ($27.98 million per married couple). Estate tax fundamentals for business owners.
CFO & AdvisoryTransferring a family business to the next generation involves complex tax, legal, and operational decisions that must be planned years in advance.
CFO & AdvisoryThe gift tax under IRC 2501-2524 applies to transfers of property for less than full consideration. 2025 gift tax numbers.
CFO & AdvisoryAn installment sale spreads the gain recognition over the years payments are received, rather than taxing the full gain in the year of sale.
CFO & AdvisoryAn installment sale under IRC 453 allows a seller to spread capital gains recognition over the years payments are received.
CFO & AdvisoryAn installment sale under IRC 453 allows a seller to spread the recognition of capital gain over the years in which payments are received.
CFO & AdvisoryAn installment sale under IRC 453 allows sellers to spread capital gains tax over the payment period rather than paying all tax in the year of sale.
CFO & AdvisoryAn installment sale under IRC 453 allows the seller to recognize capital gain proportionally as payments are received. Installment sale rules (IRC 453): 1.
CFO & AdvisoryIRC 108 excludes canceled debt from income in bankruptcy, up to your insolvency, and for qualified farm and real property business debt. You give up tax attributes in return.
CFO & AdvisoryPersonal goodwill is one of the most powerful (and most frequently overlooked) tax planning strategies in business sales.
CFO & AdvisoryWhen a homeowner sells a personal residence that was also used for business (home office), the gain exclusion under IRC 121 ($250,000 single.
CFO & AdvisorySelling business equipment triggers depreciation recapture under IRC 1245. Depreciation recapture rules (IRC 1245): The formula: - Sale price: what you.
CFO & AdvisoryWhen a business owner sells commercial real estate, the gain splits into depreciation recapture taxed at 25% and capital gain taxed at lower rates.
CFO & AdvisorySelling a rental property triggers multiple layers of tax that many investors do not anticipate. Tax components when selling a rental property: |.
CFO & AdvisorySelling a business triggers multiple layers of tax, and the total tax bill depends on the entity type (sole proprietorship, LLC, S-Corp, C-Corp.
CFO & AdvisoryThe tax consequences of selling a business differ dramatically depending on whether the transaction is structured as an asset sale or a stock sale.
CFO & AdvisoryWhen selling a business, the total purchase price must be allocated among the business assets under IRC 1060 and the residual method.
CFO & AdvisoryWhen a small business is sold, the tax treatment depends on whether it is structured as an asset sale or stock sale, how the purchase price is allocated.
CFO & AdvisoryIRC 1014 resets the tax basis of inherited assets to fair market value at death, eliminating unrealized capital gains. It is one of the largest estate.
CFO & AdvisorySelling a small business triggers capital gains, depreciation recapture (ordinary income), and potentially the 3.8% net investment income tax.
CFO & AdvisoryBuying or selling a business creates fundamentally different tax consequences depending on whether the transaction is structured as an asset purchase (the.
CFO & AdvisoryCanceled business debt is generally taxable income under IRC 61(a)(12), but the insolvency exclusion under IRC 108 can eliminate the tax.
CFO & AdvisoryBankruptcy triggers specific tax consequences that most business owners do not anticipate. COD income exclusions (IRC 108).
CFO & AdvisoryBusiness bankruptcy creates significant tax consequences that differ based on the chapter filed. Business bankruptcy triggers a complex set of tax.
CFO & AdvisoryFiling for bankruptcy does not eliminate tax obligations, and in many cases creates new ones. Bankruptcy chapters compared.
CFO & AdvisoryThe tax structure of a business acquisition determines how much the buyer pays in taxes over the next 15 years and how much the seller keeps after tax.
CFO & AdvisoryBusiness succession planning creates different tax consequences depending on whether the business is transferred to family members (gift or inheritance).
CFO & AdvisoryThe franchise fee ($20,000-$50,000+) is amortized over 15 years under IRC 197. Ongoing royalties (4-8% of revenue) are deductible when paid.
CFO & AdvisoryWhen buying an existing business, the tax structure of the acquisition (asset purchase vs. stock purchase comparison. Covers key rules, filing.
CFO & AdvisoryClosing a business triggers a series of tax events that many owners do not anticipate. Dissolution checklist by entity type.
CFO & AdvisoryClosing a business triggers final tax return filing, asset disposition, debt cancellation income, and employment tax obligations.
CFO & AdvisoryDivorce creates tax consequences for business owners including property division, valuation disputes, alimony treatment.
CFO & AdvisoryDivorce involving a business creates tax issues at every stage: property division under IRC 1041, alimony changes from TCJA, and business valuation.
CFO & AdvisoryWhen a business is sold, the tax consequences depend almost entirely on whether the transaction is structured as an asset sale or a stock/interest sale.
CFO & AdvisorySelling a business triggers capital gains tax, depreciation recapture, and potentially ordinary income depending on the asset allocation. Stock sales vs.
CFO & AdvisorySelling a business triggers capital gains tax, ordinary income from depreciation recapture, and self-employment tax on certain allocations.
CFO & AdvisoryWhen a business is acquired, a significant portion of the purchase price is often allocated to goodwill and other intangible assets.