Overview
When exit planning, it is important to weigh various issues, including tax implications, to achieve an effective management and/or ownership change. Many envision tax-free reorganizations being the most preferable structure to avoid capital gains tax, but the opportunities come at a cost to the seller. This course will provide a well-rounded discussion of the various strategies to consider when advising on exiting a business.
Prerequisites
Basic knowledge of tax issues and entity structures
Objectives
- Understand key issues regarding exit planning
- Discuss tax implications of exit planning strategies
- Compare exit planning between entity types (C corporations, S corporations, partnerships, etc.)
Highlights
- Gain exclusion and tax-free reorganization planning
- Gain exclusion with sales of C corporation stock - Section 1202
- Deferral of gain with installment reporting
- Gain planning with partnerships
- Basis planning - basis step-up at death, gifts of interests to family
- Restructuring the business entity - C vs. S corporation, partnerships, LLCs
- Real estate planning - retention vs sales, like-kind exchanges
- Employee stock ownership plans - special tax incentives
- Employee benefit planning with ownership change
- Taxes other than the federal income tax - state tax, estate, gift and generation-skipping taxes, and property taxes
- Prospects for tax law change
