I was talking to seller scared to death of taxes - he is not a fan of how the government spends money. I reached out to Eric Moore for a few talking points to help him.
I am not going to get into the details of each - reach out to Eric for that.
- Sell it as stock sale
- Sell partnership interest
- Make it an Sellers Note installment sale
- Reinvest, within 180 days, your proceeds in an Opportunity Zone
- If his business is structured as a C Corporation, he could qualify for the Section 1202 QSBS exclusion where up to $10M of gains can be excluded from Federal taxation
- Charity: If he is charitable, he may consider giving assets to charity (direct to charity or a DAF) to receive a tax deduction.
- Depending on where he lives, he might consider move to a lower tax state.
- Establish “Incomplete” Nongranator Trusts (INGs) in a tax favored state. If he establishes a trust in say Delaware, Nevada or Wyoming
Probably more, that is just 8.
If you have got sellers with exit tax implication questions, reach out to Eric Moore