About Taxes & Buying or Selling a Business

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When buying or selling a business, dealing with taxes depends on the types of assets that are being purchased and the types of contrasts that are being created. Discover a few scenarios that involve double taxation with information from an independent CPA in this free video on tax help when buying or selling a business.

Part of the Video Series: Tax Help
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Video Transcript

My name is Miranda Chook and I'm a CPA. This segment is about taxes and buying or selling a business. Now there are many reasons for how you want to structure a sale of a business. It could be a stock sale or an asset sale. Now typically, unfortunately, sometimes the the wants and needs of the seller are often in conflict with the buyer when it comes to the de-tax consequences, for example, a very basic scenario: sometimes a seller will want to avoid double taxation at the corporate and chair holder level buy having a stock sell however the buyer may want an asset sale so they receive it a stepped up tax basis. And another scenario, there may be tax operating loss losses that you can still carry back or carry forward of the entity being purchased and you'll have to see if those can still be used by the acquiring company. Now there are many other consequences and ways to structure sales depending on the types of assets that are being purchased and the types of contrasts that are being created such as non-competes so you'll want to check with an experienced financial adviser to see how all of those effects your specific transactions.

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