One of the biggest mindset shifts business owners go through when preparing to sell is realizing that sale price is not the same as what they take home. Sophisticated sellers focus on after-tax proceeds, not just valuation. Two deals can have the same purchase price and produce dramatically different outcomes once taxes are applied. The […]
allocation
allocation
What is Form 8594 and Why is it important?
Demystifying Form 8594: Your Guide to Navigating Business Sales and Taxes Buying or selling a business? Hold onto your hats, because IRS Form 8594 is about to enter the stage. This seemingly innocuous form plays a crucial role in ensuring both you and the buyer handle the tax implications of the sale smoothly. But fear […]
Allocation of the Purchase Price in the Sale of A Business
When it comes to buying or selling a business, both the Buyer and Seller tend to focus primarily on the optimizing the price and terms. All too often negotiating the optimum allocation of purchase price is an after thought. In many cases it is not even discussed until months later when the tax returns must […]