Techniques to Lower Capital Gains Tax on Your Business Sale Creative Structuring
HOW TO LESSEN THE CAPITAL GAINS TAX BURDEN First, avoid selling your business in the first year you own it. Once you have crossed the one-year threshold, you have several options to lessen this tax burden. If your business does not deal in stocks, then structure the sale to apply most of the purchase price to assets that fall into the long- term gains as opposed to any owned for less than a year. If you own a C-Corp, you can minimize capital gains taxes by allowing employees to purchase a portion or all of the business. Putting money into an employee stock ownership plan moves the proceeds of the sale into an investment plan, which defers the capital gains tax. Alternatives such as receiving payments through installments, allocating payments to an Opportunity Zone Investment, or using a Charitable Remainder Trust can help avoid high tax bills. Each of these options requires the meticulous attention of an experienced business law firm. The Law Offices of Tyler Q. Dahl will leave no stone unturned in maximizing the value you get out of the sale of your business and can help you establish an effective tax strategy as soon as you contact us.
When your business has grown to the point where other businesses or individuals find enough appeal to make an offer, it can be easy to see the dollar signs and move quickly. However, a proper tax strategy can avoid a large capital gains tax on the growth of your business.
HOW THE GOVERNMENT APPLIES CAPITAL GAINS TAXES TO BUSINESS SALES Whether you are selling your business as one asset or individual business assets, the tax will be applied by considering the value you paid on day one and the price you are selling it for today. The rate at which the difference is taxed will depend on your current income. Capital gains in California are taxed as income, but unlike the federal government, the state does not distinguish between short- and long-term gains.
Delightful Banana Bread
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This comforting, fruity favorite transforms overripe bananas into a moist, delicious treat perfect for breakfast or a snack.
Ingredients • 2 cups all-purpose flour • 1 tsp baking powder • 1 tsp baking soda • 1/4 tsp salt • 1/2 cup butter, softened
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
• 1 cup granulated sugar • 2 large eggs • 2 cups mashed ripe bananas • 1/2 cup chopped walnuts (optional)
“To dare is to lose one’s footing momentarily. Not to dare is to lose oneself.” –Soren Kierkegaard
Directions 1. Preheat oven to 350 F and grease a 9x5-inch loaf pan. 2. Combine flour, baking powder, baking soda, and salt in a medium bowl. 3. In a large bowl, beat butter and sugar until light and fluffy. 4. Add eggs and mashed bananas and mix until blended. 5. Gradually add dry ingredients to wet ingredients, stirring until blended. 6. Stir in walnuts. 7. Pour batter into prepared pan. 8. Bake for 65–70 minutes or until a toothpick inserted into the center comes out clean. Let cool before serving.
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