Education

Strategies to Know Before Selling a Business

Written by Blake Backer | Jun 11, 2024 2:04:04 PM

Selling a business has significant tax implications, so business owners must consider strategies to meet their financial goals, whether for retirement, philanthropy, or inheritance. Options include deferring gains through installment sales, using intentionally defective grantor trusts to minimize estate taxes, and understanding the differences between asset and stock sales. Charitable donations of stock before a sale or using a charitable remainder trust can also offer tax benefits. Another strategic option is investing proceeds in Opportunity Zones, which can defer capital gains and potentially eliminate taxes on future appreciation, making it ideal for those willing to commit to long-term investments in economically distressed areas.

This article written by Rob Csernyick from Barron's explores these reasons here