Tax & Legal Help
April 21, 2023
by a searcher from Salisbury University - Franklin P. Perdue School of Business in Virginia Beach, VA, USA
I"m acquiring Company A via SBA loan
- Purchased by my ABC Holding Company (C Corp)- I own 100% of the shares
2-3 months later I'll be acquiring Company B via Private Lender. The funds from this private lender are to acquire both Company A & Company B, paying off the SBA loan for Company A immediately. The only purpose of acquiring company A with SBA loan earlier is due to timing. The seller doesn't and won't wait another 2-3 months to close.
- Purchased by DEF Holding Company (C Corp) with 4 partners
DEF Holding Company will then own both Company A & Company B
The Question- What is the most tax efficient way to do this for me?
in Portland, OR, USA
Loan Interest Deductibility: Ensure interest expenses on SBA and private loans are tax-deductible, optimizing debt structure and minimizing tax burden.
Utilize 338(h)(10) Election: If eligible, consider a 338(h)(10) election to treat the stock purchase as an asset purchase, providing potential tax benefits.
Consult a tax advisor to tailor these strategies to your specific circumstances.
from Seton Hall University in Morristown, NJ 07960, USA