Description

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.

Instructor: Bob Lickwar, CPA

Target Audience

CPAs in industry and public accounting who want to gain an understanding of exit planning considerations for their clients

Course 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.)

Subjects

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

Prerequisites

Basic knowledge of tax issues and entity structures