Looking at a deal and interested in some advice on structure / tax implications.
Seller is retiring and interested in selling his California-based business. He's already sold his California home and now rents an apartment. His wife lives at their home in another state, and he's currently doing two weeks on, two weeks off here in California to give attention to the business.
I'd like to allocate as much to a seller note as possible. I'm wondering how best to make a case to the seller to that end. I assume that the proceeds paid at closing would be taxed by California, but wondering about proceeds over time via a seller note? Would those taxes be spread out based on the actual note payments? Also, if the seller sold the business on a note and then moved full-time out of state, would he at some point be able to avoid California capital gains rates on note payments?