June 22, 2026

Selling your Business

Selling your Business
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Season 4

Tax Talk 4 U Selling your Business? The tax consequences of the business sale and Structuring the sale of your business to reduce taxes. How your business sale is taxed and reducing the tax burden of a business sale. How does entity structure effect a business sale.

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).

Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.

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WEBVTT

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The topics and opinions express in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W FOURCY Radio

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or it's employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Barry G.

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Fowler EA brings you tax talk for you right here

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on W four CY Radio and talk for TV. As

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an enrolled agent and a national leader in tax resolution

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as well as Trucker bookkeeping and tax planning. With over

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thirty years of experience, Barry will break down taxes, book keeping,

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tax planning, and tax relief for individuals and businesses just

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like you. So let's have some tax talk for you

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with your hosts.

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Barry G.

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Ho Hey, good morning, a great Monday morning. And continuing

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on from a program we just finished with asked the

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Experts and Steve O. Great program. We were talking about

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IRS problems and relief and solutions and do you have

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to talk to the irs if you hire us. All

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those great things that we were talking about there on

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Ask the Experts. So you can go find Ask the

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Experts and see their podcasts iHeart and YouTube and so forth, Spotify.

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I think they're on all the major networks out here,

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but right here on tax Talk for you. You can

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go over to tax Talk the number four LETTERU dot com.

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Follow us over there, never miss an episode. You can

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do that over on Facebook as well. You know, we're

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here to help you today. We're talking about selling your

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business man, you know, as a small business owner, envision

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turning your company, your practice, your storefront into you know,

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maybe the next Walmart or uh, you know, the next

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large firm out there or practice. And uh, you know,

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you've built this business and now you're dreaming of maybe retirement,

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maybe stepping away, and you're looking for that sizable payout

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selling your your business and you know, so you're going

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to be counting on, you know, that money for the

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next stage of your life, you know, retirement, travel, Uh,

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maybe it's a second career, or maybe it's doing the

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next business you want to get into. You know, so

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you've got to take what are all the tax implications

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and selling this business? You know, especially maybe you're getting

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wump sum or maybe you're getting monthly or annual payments

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on this thing. You're owner financing it, and so you know,

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what is your tax liability? What's the best way is

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selling your business? How are you going to reduce these

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god forsaken taxes that you're going to have to pay?

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I mean, you've built this business and now you're getting

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this sizeable payout and selling your business. You know, you

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got to think about this. So you've built this business,

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you're going to sell it for let's say a million dollars.

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What's the tax implications? And it all depends on how

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you're structured, how you're doing the deal, how the bale

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is going to go through, and then what's the tax

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ability on all of this? So you know, let's start

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with you know, hey, if you just were selling this

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business and everything was ordinary income, you could be paying

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up to thirty seven percent tax on this, you know,

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or maybe even adding that two and a half percent

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for medicare on there. So now you're at thirty nine

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or at a half percent. Then you add stay income

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taxes on this.

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Wow?

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Wow? What are you left with at the end of

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the day. Maybe you're paying a broker fee as well,

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let's say ten percent. You know, now, what do you do?

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You know all these things are going to impact your

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bottom line. All these things are going to say to

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you is how much am I going to be left

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with at the end of the day. How can we

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avoid this much in tax? Is this the right time

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to even sell my business? And we had our first

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question here today, Ernie, what if you need time to

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get things in business going, how would you know is

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it a good time to sell. Well, if you need

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time to get things going, you don't have to be

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in a rush to sell your business. We're talking today

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that hey, you're at the point of wanting to sell

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your business. You know, maybe you're tired of doing what

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you do, or you need a new challenge in your

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Maybe you got to the point where, hey, it's not

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a challenge anymore, and you want to move and do

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something different. Maybe you just want to retire and you

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don't want to be working forty sixty eighty hours a

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week keeping your business going and doing the things you

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need to do in business. Those are decisions you have

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to make personal decisions Sometimes it's somebody who just walked

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in the door and made you an offer that you

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just couldn't refuse. You know what if that happened, you know,

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somebody asked me one day, would you sell? Well, somebody

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came in and offered the right price. Everything's for sale,

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almost everything, wife and kids excluded. But you know the

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building that we're in. If somebody came in and offered

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us a price I couldn't refuse, I would sell the

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building that we own. Somebody asked about our ranch. You know,

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everything's for sale at the right price. You know, somebody

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offers you an unbelievable amount of money for it. Is

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it going to be? You know what you want and

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what you need to walk away and then maybe replace

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it with something different or move on to something else,

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or hey, you're just wanting to retire and go Arnold's

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asking if you're thinking about selling and going into something different,

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do you need to sell or shut down or can

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you just restructure and keep the tax identification of the

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current business. Well, Arnold's kind of depends on how you're selling.

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I mean, if you're just going to shut down and

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just say hey, I don't care, it doesn't matter then

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you can just shut down and walk away and close

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the business down. If you're selling the assets of the business. Okay,

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now we're going to talk about how you structure sales

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and the best tax advantages how you do it. But

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if you decide you're going to sell the assets of

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the business and keep the business, Let's say you own

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Maverick Investments and you sell everything off, you can continue

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to use that, maybe change the name if you wanted

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to keep that entity, if you wanted to do that,

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But you may want to just restart and do something

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different with a different name, your choice. That's out there,

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so you can do things that restructure the business and

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keep your employer identification number and keep the current business.

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But if that's the case, then you know you need

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to sit down, talk to your tax person, your lawyer

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and make it make sure it makes all sense for you.

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Now you got that offer that you're going to to

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sell your business, and you're going to accept this offer.

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What's the best structure for you in this business? Because

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you know the total amount of tax that you're going

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to pay depends on how that deal is structured, at

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least legal classification of your entity and how the purchase

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price is allocated across the assets that you've got to

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so you know, you fundamentally you've got to look at

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it this way. If you're looking at the lowest possible tax,

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you're looking at structuring this as a pure sale. So

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if you've got an LLC, you've got a INK, you

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go to sell the company and the company shares. Now

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we're going to make this simple and easy. You're then

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just selling the ownership equity. It is strictly capital gains

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anywhere from fifteen to twenty percent. And this structure, if

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you're selling, is favored by you. Why because you're selling stock,

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just like you're selling excellent stock, or you're selling McDonald's stock,

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or you're selling any other stock you invest in that's

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publicly traded out there. You're selling your interest in the company.

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That's it. They take over the company. So you know,

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if you were selling Joe's widgets ink or Joe's willage,

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it's LLC and you sell the shares. This is going

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to achieve the lowest possible tax out there because you're

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only going to have capital gaine tax on the sale

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of the interest of the business. Now that's favored only

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by sellers. Okay, buyers are not looking to do that,

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because when a buyer buys your business, they buy a

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lot more of the liabilities and everything else the company

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has done over the past. However, many years your company

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has been in existence, and they get no appreciation except

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for the appreciation left on the assets that are in

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the business. So it makes a huge difference to a

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buyer on which way they're going to go. Now, remember

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tax consequences for you as the seller selling the stocks,

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selling the membership interest in YOURLLC is the preferred because

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it does achieve the lowest possible tax on the business,

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and that's what you, as a seller are looking for.

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So you know, you have to look at how this

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is going to be structured, not just from your standpoint,

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but how the buyer is going to be looking for

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at it as well. Now we're going to take a

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short break. When we come back, we're going to take

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a talk about the implications as buying stock as a

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buyer and how it may influence this transaction is going

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to go as well. We'll do that right after.

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We have only scratched the surface of today's show. Please

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stand by as Barry G. Feller we'll be right back

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with tax Talk for you. If you owe the IRS

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or are going through an IRS audit, don't go at

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it alone.

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Called Taxation Solutions tax.

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Relief at eight eight eight nine three zero one zero

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one six. We are your solution for IRS debts, audits,

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back taxes, garnishments leaned and whether you're an individual or business,

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you need a solution and a strong aggressive tax resolution.

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Don't let the IRS walk all over you.

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Stop the IRS now call eight eight eight nine three

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zero one zero one six or go to Taxationsolutions dot

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net now for a free no obligation consultation. Let's get

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back to tax Talk for you with more tax tock

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once again.

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Here's your host, Barry G. Faller Back.

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We had a couple of good questions came in right

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before the break. Pam, you were asking a question about

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starting a new business not knowing what kind of income

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or revenues you're going to have. Should you started as

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an LLC or corporation. Hey, we did a great show

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last week at tax Talk for you about starting a

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new business. Things you need to know about that, So

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if you go to tax Talk the number four letter

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you dot com. You can go over there and see

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and watch the podcast from last week, and you know

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you can also go to iHeart and Spotify and even

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YouTube and see the shows as well. Again, that's tax

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Talk the Number four LETTERU dot com and go find

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last week's episode and see everything about starting a new

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business as as well. But thank you for listening and

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make sure you get over there and see some of

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the other shows that we've got as well. Mandy was

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asking do private companies have stocks, such as an ll C.

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So yes, when you set up your company and going

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through your articles and corporation, they're going to ask you

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how many shares of stock or you know your membership

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interests as in the LLC. Yes, they considered to be

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a stock that should be issued. If you're going through

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a lawyer, they would typically give you a big corporate

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book with stock shares and everything in it. If you're

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an LLC, they usually give you a corporate book and

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give you what is considered shares of membership interest in

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the LLC, and those are what you sell and they

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take over your business now as a buyer. As we

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were talking about before the break, so there are some

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negative things that come with a stock sale or stock purchase.

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If you're the buyer, so you as the owner selling it,

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wants to sell the shares because of the lower rate

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you as a buyer. You usually dislike pure stock sales

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because you hear it all historical liabilities and lose the

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ability to write off asset depreciation. Now, if there's still

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some depreciation in the assets, you can write it off.

227
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But when you're buying the share, you're buying the shares,

228
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you're buying the company. When you start buying the assets

229
00:14:06.639 --> 00:14:10.720
of the business, you now have a depreciable armortizable asset

230
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out there, which we're going to go through. So one

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of the big things we tell people if we're working

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with the buyer is you want to do a transcript

233
00:14:20.120 --> 00:14:24.720
analysis on the company you're buying so that you can

234
00:14:24.799 --> 00:14:28.840
look to see you do they have any liabilities with

235
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the irs such as payroll liabilities. You don't want to

236
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inherit those kind of liabilities. Have they filed all their

237
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tax returns? Is there any penalties that is being assessed

238
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against the company, because these are things that you're going

239
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to inherit. Do they have an account's payable? Have they

240
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paid all their debt? Because if they haven't paid their debt,

241
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you would be subject to paying that debt. You know,

242
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you can put some money in scrow just in case

243
00:14:55.120 --> 00:14:57.919
you have some of these things, but sometimes that seller

244
00:14:57.960 --> 00:15:01.080
doesn't want that and they want to thing up front,

245
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so you kind of got to watch what you're doing. Now.

246
00:15:04.840 --> 00:15:09.360
The other type that you have is an asset purchase. Now,

247
00:15:09.799 --> 00:15:15.519
asset purchase is actually split by asset, so the seller

248
00:15:15.600 --> 00:15:18.720
may have some capital gains mixed with some ordinary income.

249
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As a buyer, you're going to buy the assets, be

250
00:15:22.360 --> 00:15:27.759
able to depreciate or advertise the goodwill or advertise some

251
00:15:27.799 --> 00:15:29.360
of the other assets that you're out there, and then

252
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depreciating the other assets that you're doing. So, if you're

253
00:15:31.799 --> 00:15:36.519
bought a trucking company had trucks, you'd put a price

254
00:15:36.720 --> 00:15:39.960
for each of the trucks that you were purchasing so

255
00:15:40.000 --> 00:15:42.879
that you'd be able to depreciate those trucks in this purchase.

256
00:15:43.399 --> 00:15:45.840
If it just has a client list, then it would

257
00:15:45.879 --> 00:15:50.639
be basically good will and you'd be advertising it. So

258
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there's a difference out now, as the owner of the

259
00:15:53.559 --> 00:15:57.879
business who was selling, you would have potentially capital gains

260
00:15:57.919 --> 00:16:01.080
on some assets that you're selling, but then you would

261
00:16:01.120 --> 00:16:04.200
have ordinary income on much of the assets that you're selling,

262
00:16:04.360 --> 00:16:06.919
and therefore you could be paying the higher tax rate

263
00:16:07.799 --> 00:16:11.679
based on you know what your tax bracket is, and

264
00:16:11.720 --> 00:16:13.960
that means you could be paying up to thirty seven

265
00:16:14.200 --> 00:16:19.399
percent out there. So you as a seller selling individual

266
00:16:19.440 --> 00:16:25.159
components of the business, equipment, inventory, goodwill. So those are

267
00:16:25.200 --> 00:16:27.080
the things that you're looking to do, and then you're

268
00:16:27.080 --> 00:16:32.360
going to have the higher tax rate out there, and

269
00:16:32.399 --> 00:16:36.279
then wow, a lot of things to consider. You've got

270
00:16:36.279 --> 00:16:38.960
to factor in the type of entity that you have,

271
00:16:39.320 --> 00:16:42.279
so your current business structure can alter how the cash

272
00:16:42.320 --> 00:16:49.240
proceeds are legally processed and taxed. So sole proprietorships LLCs,

273
00:16:50.240 --> 00:16:53.919
these are passed through entities and the sales automatically treated

274
00:16:53.960 --> 00:16:58.080
as an asset sale and taxes flow directly onto your

275
00:16:58.080 --> 00:17:02.519
personal tax return via higher Schedule C and IRS forty

276
00:17:02.559 --> 00:17:07.039
seven ninety seven. Now that's saying that your LLC is

277
00:17:07.119 --> 00:17:13.200
a single member LLC out there and not a partnership

278
00:17:13.359 --> 00:17:18.039
or es corp. Your s corporation has passed through treatment.

279
00:17:19.440 --> 00:17:22.759
But you have the flexibility to execute a stock sale

280
00:17:22.920 --> 00:17:28.720
or utilize this Section three eight h ten election, which

281
00:17:28.920 --> 00:17:32.480
this election treats a stock sale as an asset sale.

282
00:17:32.519 --> 00:17:35.920
For tax purposes, allowing you to negotiate a higher purchase

283
00:17:35.960 --> 00:17:39.200
price in exchange for giving the buyer a better tax

284
00:17:39.279 --> 00:17:42.799
break out there. So there are ways of going through

285
00:17:42.920 --> 00:17:44.960
and doing that if you're going to do a stock sale.

286
00:17:45.599 --> 00:17:47.160
But if you're trying to get away with the stock

287
00:17:47.200 --> 00:17:51.039
sale to lower your taxes, that section three three eight

288
00:17:51.480 --> 00:17:55.799
h ten election should not be executed. So to consider,

289
00:17:56.240 --> 00:17:59.440
if you're a C corp, you're going to have double taxation.

290
00:18:00.319 --> 00:18:04.680
If a C corp you have assets sale, the corporation

291
00:18:04.799 --> 00:18:07.240
is going to pay that twenty one percent federal income

292
00:18:07.279 --> 00:18:11.000
tax on the profit first, then you're going to pay

293
00:18:11.519 --> 00:18:16.240
personal capital gains taxes when distributing remaining cash to yourself.

294
00:18:17.839 --> 00:18:20.960
So but if you sell the stock again, that avoids

295
00:18:21.400 --> 00:18:24.599
this corporate level of tax and you're just tax for

296
00:18:24.640 --> 00:18:29.759
the sale of stock. So makes it very very complicated

297
00:18:29.799 --> 00:18:32.359
as you're going through and doing this is what's going

298
00:18:32.440 --> 00:18:36.920
to be the right way for me in doing this sale.

299
00:18:37.240 --> 00:18:40.839
So it's partly art of negotiation. A lot of times

300
00:18:41.240 --> 00:18:44.440
when you're doing a stock sale, you're going to get

301
00:18:44.640 --> 00:18:50.319
a little lower price because the buyer loses that depreciation

302
00:18:50.759 --> 00:18:57.240
amborgization of goodwill and stuff that they cannot get if

303
00:18:57.279 --> 00:19:00.160
they just buy the stock and they picking up the

304
00:19:00.200 --> 00:19:07.400
inherent liabilities of the company that could be outstanding via

305
00:19:07.799 --> 00:19:11.279
the stock sale. So you may have to weigh out

306
00:19:11.640 --> 00:19:14.559
what's best for you. So we sold a company many

307
00:19:14.599 --> 00:19:17.079
years back, and we had to sit down and weigh

308
00:19:17.119 --> 00:19:19.480
out what was going to be the right way to

309
00:19:19.519 --> 00:19:22.599
do it. They weren't offering a high enough price, so

310
00:19:22.680 --> 00:19:27.160
we preferred stock sale versus as a sale because it

311
00:19:27.200 --> 00:19:31.279
would get us down to the right value. When we

312
00:19:31.359 --> 00:19:33.400
sat down and looked at whether we would want to

313
00:19:33.440 --> 00:19:37.039
sell the company, the number work right, so we didn't

314
00:19:37.079 --> 00:19:42.079
want to sell. The numbers just wouldn't work. So, you know,

315
00:19:42.160 --> 00:19:44.440
that's the things you've got to sit down and look

316
00:19:44.440 --> 00:19:47.640
at as a business owner to decide, hey, is this

317
00:19:47.759 --> 00:19:50.359
the right way to go. And it's not the gross

318
00:19:50.440 --> 00:19:53.559
number that makes a difference. It is the net number

319
00:19:53.720 --> 00:19:58.039
after tax that becomes the most important number for you.

320
00:19:58.319 --> 00:20:00.359
So if you're going to be in that thirty seven

321
00:20:00.799 --> 00:20:03.839
percent tax bracket, and let's just say you have a

322
00:20:03.880 --> 00:20:06.880
broker at twelve percent, well now you're at, you know,

323
00:20:07.039 --> 00:20:10.920
roughly net of forty five percent. You know that doesn't

324
00:20:10.960 --> 00:20:14.519
add up. We're lowering the taxes because of the percentage

325
00:20:14.559 --> 00:20:17.319
we're paying the broker so that we're not getting tax

326
00:20:17.400 --> 00:20:20.000
on all of it. And now you know, hey, is

327
00:20:20.039 --> 00:20:22.559
this right amount to be left with? So you know,

328
00:20:22.559 --> 00:20:24.839
if it was a million dollars and you're you know,

329
00:20:25.079 --> 00:20:27.839
out of that million dollars, you're going to pay the

330
00:20:27.920 --> 00:20:31.119
highest taxes and everything on it, and you're left with

331
00:20:31.240 --> 00:20:33.880
five hundred and you know, fifty thousand dollars, is that

332
00:20:34.000 --> 00:20:37.279
enough money really for selling the business? Well it may

333
00:20:37.319 --> 00:20:40.119
not be. And if that's not enough money, then you

334
00:20:40.200 --> 00:20:41.960
go back to the drawing board and say, no, this

335
00:20:42.119 --> 00:20:44.319
isn't the number that I need to go through and

336
00:20:44.359 --> 00:20:47.559
do this. Or maybe hey, we turn this into a

337
00:20:47.599 --> 00:20:51.680
stock sale so that I'm only paying maybe that that

338
00:20:51.880 --> 00:20:56.400
twenty or so percent out there on it, plus the

339
00:20:56.440 --> 00:21:02.200
broker commission broker commissions and so that maybe makes more

340
00:21:02.240 --> 00:21:06.400
sense to you than selling the assets of the business.

341
00:21:06.480 --> 00:21:09.759
So depending on the price, it's it's going to be

342
00:21:09.799 --> 00:21:14.559
an art of negotiation, you know, in this asset set.

343
00:21:14.720 --> 00:21:19.119
So you know, you and the buyer, you know, you've

344
00:21:19.160 --> 00:21:22.680
got to sit down and discuss. Hey, if it's an

345
00:21:22.720 --> 00:21:25.319
asset cell, you've got to come up with how much

346
00:21:25.359 --> 00:21:30.200
is goodwill and in tangibles, tax tax treatment, how much

347
00:21:30.279 --> 00:21:34.519
is going for inventory or stock in trade, how much

348
00:21:34.799 --> 00:21:40.960
is fully depreciated equipment, is you know, accounts receivable? You

349
00:21:40.960 --> 00:21:44.200
know how much they giving you for the accounts receivable

350
00:21:44.240 --> 00:21:47.920
that's out there. So all these things you're going to

351
00:21:48.000 --> 00:21:51.039
want to negotiate. You're going to want to maximize the

352
00:21:51.079 --> 00:21:55.519
amount that goes into goodwill to use the lower capital

353
00:21:55.559 --> 00:21:59.359
gains tax rates. So you know, those are the kind

354
00:21:59.400 --> 00:22:04.799
of things you're going to want to negotiate in the

355
00:22:04.880 --> 00:22:09.960
sale of a business so that you can lower your

356
00:22:10.000 --> 00:22:14.839
tax burden on this this sale. So you're proud you've

357
00:22:14.839 --> 00:22:17.119
made a lot of money in this business. You have

358
00:22:17.319 --> 00:22:20.920
great revenues, you have great net income. You know, your

359
00:22:20.960 --> 00:22:24.400
earnings before income tax is really strong, and you're going

360
00:22:24.480 --> 00:22:26.799
to get a good payout. And now you've got to

361
00:22:26.839 --> 00:22:28.960
look at you know, you're looking at the tax implications

362
00:22:29.000 --> 00:22:31.240
on this and what am I going to net after

363
00:22:31.319 --> 00:22:32.920
this is all done. So you've got to have a

364
00:22:32.960 --> 00:22:35.720
good tax prepayer that knows what they're doing so that

365
00:22:36.000 --> 00:22:39.359
you know when you're going through this negotiation period that

366
00:22:39.440 --> 00:22:42.680
you can get this down to the right amount so

367
00:22:42.759 --> 00:22:47.920
that you can deduct it the right way and decrease

368
00:22:48.480 --> 00:22:53.039
the tax burden on yourself. And as a buyer, you're

369
00:22:53.079 --> 00:22:58.880
wanting to increase your amborgtization and your depreciation on the

370
00:22:58.880 --> 00:23:05.599
purchase of the assets as well. So then you also,

371
00:23:05.680 --> 00:23:07.440
if you're in one of those dreadful states that have

372
00:23:07.480 --> 00:23:12.359
a state income tax, you could have additional taxes, like

373
00:23:12.440 --> 00:23:17.839
California could be almost thirteen percent on business sales. But

374
00:23:17.920 --> 00:23:20.720
if you're in the state of Texas Zip SII. It's

375
00:23:20.759 --> 00:23:24.759
a little known secret out there. California has very high

376
00:23:24.839 --> 00:23:29.160
tax rates. In Texas, it's none. We have property tacks,

377
00:23:29.480 --> 00:23:31.880
but we don't have a state income tax, so there

378
00:23:31.880 --> 00:23:34.519
wouldn't be a tax on this business sale if you

379
00:23:34.519 --> 00:23:39.200
were selling your business in Texas. So keep those things

380
00:23:39.240 --> 00:23:43.400
in mind. Now. If you are making a lot of

381
00:23:43.400 --> 00:23:46.119
money and you're modified adjust grossed income is more than

382
00:23:46.160 --> 00:23:49.279
two hundred and fifty thousand if you're married filing jointly,

383
00:23:49.440 --> 00:23:52.519
or two hundred thousand if you're single, there's an additional

384
00:23:52.599 --> 00:23:58.319
three points eight percent of Net Investment income tax ouch

385
00:23:58.920 --> 00:24:02.160
i RS is his to you with an extra tax

386
00:24:02.279 --> 00:24:05.960
on top of your regular income tax because you made

387
00:24:06.480 --> 00:24:09.519
excess money. Hey, remember when you said, hey, vote this tax,

388
00:24:09.559 --> 00:24:11.400
are rich and you just sold your business and now

389
00:24:11.440 --> 00:24:16.440
you're part of that considered rich. Yeah, it happens. We've

390
00:24:16.480 --> 00:24:20.279
seen it many, many times in talking with clients and

391
00:24:20.359 --> 00:24:22.839
people that hey, we want to tax the RIDGS tax,

392
00:24:22.880 --> 00:24:26.079
the Ridge tax. Ridge taxes business owners. You know they

393
00:24:26.200 --> 00:24:27.880
need to pay more money, they need to pay their

394
00:24:28.200 --> 00:24:31.400
fair share. Well you just hit what they're talking about,

395
00:24:31.440 --> 00:24:34.200
that fair share, that extra three point eight percent and

396
00:24:34.279 --> 00:24:38.160
that investment come tax and it's a a three point

397
00:24:38.200 --> 00:24:41.279
eight percent right out of your pocket, my friend. Your

398
00:24:41.359 --> 00:24:46.759
pocket didn't feel really good today, does it. So, so

399
00:24:47.000 --> 00:24:51.240
we're going to talk about ways of mitigating this tax

400
00:24:51.480 --> 00:24:55.160
and the tax strategies you can use to mitigate those

401
00:24:55.160 --> 00:24:57.920
taxes as well. When we come right back, maybe we

402
00:24:57.920 --> 00:25:00.079
won't come right back, maybe we'll just stay here and

403
00:25:00.240 --> 00:25:04.000
keep talking. So we're talking about mitigating those tax strategies

404
00:25:05.119 --> 00:25:08.880
in helping you to reduce those taxes. Ability had a

405
00:25:08.880 --> 00:25:10.880
great question here when you buy a company, are you

406
00:25:10.960 --> 00:25:13.960
buying the iris issues it may have if you're buying

407
00:25:13.960 --> 00:25:18.119
the shares of the company. Absolutely, Ability, and that's why

408
00:25:18.200 --> 00:25:20.759
we suggest when you're buying a business that if you're

409
00:25:20.759 --> 00:25:23.240
going to buy the shares do a tax analysis on it.

410
00:25:23.799 --> 00:25:25.599
We can do an eighty eight twenty one where we

411
00:25:25.640 --> 00:25:27.480
can pull all the records and make sure there's no

412
00:25:27.640 --> 00:25:31.559
tax liabilities on the business. We also look at the

413
00:25:31.559 --> 00:25:34.079
tax returns, make sure that there is no problems on

414
00:25:34.119 --> 00:25:36.720
those tax returns. To the best of the ability, you

415
00:25:36.839 --> 00:25:40.319
may put in a few clauses with that owner that

416
00:25:40.839 --> 00:25:45.200
if any other liabilities come up, that they're responsible for

417
00:25:45.240 --> 00:25:47.839
them as well. So there's a couple of the issues

418
00:25:47.880 --> 00:25:51.200
we can look at as we're going through illness. We're

419
00:25:51.200 --> 00:25:53.079
going to try to take a short break here right here,

420
00:25:53.559 --> 00:25:57.319
and we're right back and we'll continue talking about mitigating

421
00:25:57.359 --> 00:26:00.880
some tax taxes and strategies do that right after this.

422
00:26:02.359 --> 00:26:06.000
We have only scratched the surface of today's show. Please

423
00:26:06.039 --> 00:26:09.279
stand by as Barry G. Fowler will be right back

424
00:26:09.400 --> 00:26:15.319
with tax talk for you. As an owner operator, you

425
00:26:15.440 --> 00:26:18.880
already spend too much time away from your family. Stop

426
00:26:18.960 --> 00:26:23.359
spending time doing paperwork. Go to Trucker tax tools dot com,

427
00:26:23.400 --> 00:26:27.920
a solution built specifically for truckers. Trucker tax tools dot

428
00:26:27.960 --> 00:26:34.039
Com makes your life run smoothly. Let's get back to

429
00:26:34.200 --> 00:26:37.880
tax talk for you with more tax talk once again,

430
00:26:38.359 --> 00:26:40.279
here's your host, Barry G.

431
00:26:40.559 --> 00:26:40.880
Foller.

432
00:26:43.240 --> 00:26:45.640
All right, so we're going to continue talking about now

433
00:26:46.119 --> 00:26:50.559
executing and minimizing tax strategies and stuff. How can we

434
00:26:50.720 --> 00:26:54.359
do that when you're selling a business. One of the

435
00:26:54.359 --> 00:26:57.640
ways that you can do that is by doing an

436
00:26:57.640 --> 00:27:01.359
installment sex section four point fifty three, where you're going

437
00:27:01.400 --> 00:27:05.240
to spread your payments out on this business over multiple

438
00:27:05.279 --> 00:27:08.880
tax years. You're only going to pay taxes on the

439
00:27:09.039 --> 00:27:11.759
principle as you receive it, keeping it out of the

440
00:27:11.839 --> 00:27:14.359
highest tax bracket. So you know, you sold that business

441
00:27:14.359 --> 00:27:16.079
for a million dollars, but you're going to take this

442
00:27:16.160 --> 00:27:20.119
in installments maybe two hundred thousand dollars a year over

443
00:27:20.160 --> 00:27:23.559
the next you know, five years plus interest, so your

444
00:27:23.599 --> 00:27:28.519
interest would have ordinary income and then what you're collecting

445
00:27:28.839 --> 00:27:34.319
for principle would then be taxed plus any depreciable assets

446
00:27:34.519 --> 00:27:38.200
or goodwill and stuff like that that you're being able

447
00:27:38.200 --> 00:27:41.480
to deduct out there. So it is one way of

448
00:27:41.880 --> 00:27:46.200
being able to do that, and it spreads it out

449
00:27:46.680 --> 00:27:49.759
over you know, the five years or whatever the time

450
00:27:49.799 --> 00:27:54.960
period is that you're collecting money from the clients or

451
00:27:55.000 --> 00:27:59.160
your your buyers, and you're keeping a little bit more

452
00:27:59.160 --> 00:28:01.720
of the money, but you don't have full use of

453
00:28:01.839 --> 00:28:05.519
all the money today from the sale of the business.

454
00:28:05.599 --> 00:28:08.640
You'll be getting a certain amount of money every year,

455
00:28:09.160 --> 00:28:12.599
so you want to make sure that whatever you're doing

456
00:28:12.759 --> 00:28:16.960
in that regards that you've completely vetted the buyers and

457
00:28:17.000 --> 00:28:19.880
that they'd afford to make sure that the payments. We've

458
00:28:19.880 --> 00:28:22.160
even seen deals for their structure that they get a

459
00:28:22.200 --> 00:28:25.480
percentage of revenue over the next five years, so that

460
00:28:26.640 --> 00:28:29.599
you know they're getting money every single month based on

461
00:28:29.640 --> 00:28:31.920
the amount of revenues they're collet there. So you know,

462
00:28:32.000 --> 00:28:35.480
you may have a deal structure where you get a

463
00:28:35.799 --> 00:28:40.480
love sum upfront and then a percentage of the revenues

464
00:28:40.680 --> 00:28:44.759
every single year as it's collected. A lot of times,

465
00:28:44.759 --> 00:28:46.400
you don't want to be on the net income set

466
00:28:46.480 --> 00:28:49.519
of it, because they have the ability to monifind net

467
00:28:49.519 --> 00:28:54.200
income by doing such things as paying unreasonable expenses or

468
00:28:54.240 --> 00:28:58.480
paying higher salaries to where it leaves a net of

469
00:28:58.880 --> 00:29:02.839
very low income and therefore you're not collecting as much

470
00:29:02.880 --> 00:29:06.680
money each each year based on the fact that they

471
00:29:06.720 --> 00:29:10.759
can modify that net income to a percentage as you're

472
00:29:10.799 --> 00:29:13.319
going there. So you definitely want a certain amount going

473
00:29:13.359 --> 00:29:16.200
in or a percentage of revenues. A lot of times

474
00:29:16.240 --> 00:29:19.640
we've seen the deal where the revenues stream isn't guaranteed

475
00:29:19.680 --> 00:29:21.759
and they want you to be somewhat involved in the

476
00:29:21.799 --> 00:29:25.160
business continuing this revenue stream, So they'll do it on

477
00:29:25.200 --> 00:29:28.920
a percentage of revenues going forward with a lompsum up front,

478
00:29:29.240 --> 00:29:31.640
and if you're good with something like that, that you've

479
00:29:31.720 --> 00:29:34.839
spread out your income over a period of time that

480
00:29:34.880 --> 00:29:39.359
you can collect off those net revenues. Now, if you

481
00:29:39.680 --> 00:29:45.039
are a C corporation and you qualify under the Qualified

482
00:29:45.039 --> 00:29:50.519
Small Business stock guidelines, you could be eligible to exclude

483
00:29:50.599 --> 00:29:54.640
up to ten million or ten times your basis completely

484
00:29:54.720 --> 00:29:58.680
free of federal attax. Now, to get to that ten million,

485
00:29:58.839 --> 00:30:01.200
you'd have to have a million dollar basis in the company,

486
00:30:01.279 --> 00:30:04.119
and therefore that's where you would be. But you could

487
00:30:04.279 --> 00:30:08.799
potentially exclude it using Section twelve two, which again is

488
00:30:08.799 --> 00:30:14.079
that qualified small business Excuse me stuck. Another thing is

489
00:30:14.480 --> 00:30:18.039
you can reinvest your business sale capital gains into a

490
00:30:18.119 --> 00:30:23.319
designated IRS Opportunity Zone fund to defer federal tax liabilities

491
00:30:24.079 --> 00:30:28.079
that are out there. It's the qualified Opportunity zones that

492
00:30:28.240 --> 00:30:31.359
get you out there and do it. You've got to

493
00:30:31.400 --> 00:30:34.359
be very particular in doing this and making sure that

494
00:30:35.319 --> 00:30:38.680
you have it set up the right way so that

495
00:30:39.000 --> 00:30:43.119
you don't violate of the federal laws in doing that,

496
00:30:43.240 --> 00:30:47.920
and your opportunity zones that are there. You know, one

497
00:30:47.920 --> 00:30:51.079
thing that I tell you to do when you're selling

498
00:30:51.160 --> 00:30:54.039
your business, make sure you dot your eyes and cross

499
00:30:54.079 --> 00:30:57.920
your t's, you know, making sure that what your tax

500
00:30:58.000 --> 00:31:02.559
liability is going to be, make sure that you have

501
00:31:02.640 --> 00:31:06.279
the money set aside to pay that tax liability. You

502
00:31:06.319 --> 00:31:12.079
don't want to be in a position where you have

503
00:31:12.319 --> 00:31:14.640
tax liabilities you can't afford to pay that. Maybe you've

504
00:31:14.640 --> 00:31:17.680
reinvested all the money into a new business out there,

505
00:31:18.759 --> 00:31:22.319
If maybe part of that sale is a sale of

506
00:31:22.440 --> 00:31:26.160
like a business building, you could possibly execute a ten

507
00:31:26.240 --> 00:31:29.240
thirty one exchange on the sale of the building out

508
00:31:29.279 --> 00:31:32.519
there to defer that tax liability out to the future.

509
00:31:33.359 --> 00:31:39.279
So there are possibilities of selling real estate fixed asset

510
00:31:39.720 --> 00:31:43.200
such as that you know, building property and so forth,

511
00:31:43.240 --> 00:31:46.839
that you could execute into a ten thirty one exchange

512
00:31:47.200 --> 00:31:50.920
and defer that profit future down the road. If you're

513
00:31:50.920 --> 00:31:54.039
going to do a ten thirty one exchange, then you

514
00:31:54.079 --> 00:31:56.559
make sure you have a ten thirty one exchange company

515
00:31:56.880 --> 00:32:00.640
and the money never touches your pockets, your accounts. It

516
00:32:00.680 --> 00:32:03.440
goes directly to the ten thirty one exchange company and

517
00:32:03.519 --> 00:32:06.640
goes directly from the ten thirty one exchange company to

518
00:32:07.000 --> 00:32:10.119
the new investment that you have. You could even use

519
00:32:10.200 --> 00:32:13.839
things as Delaware Service trusts that you can invest in

520
00:32:13.880 --> 00:32:16.079
if you don't have particular real estate that you want

521
00:32:16.119 --> 00:32:19.480
to get into today. So there's different things that you

522
00:32:19.519 --> 00:32:25.319
can do that can work to your advantage when you're

523
00:32:25.359 --> 00:32:29.559
going out there and selling your business or your property

524
00:32:29.680 --> 00:32:32.920
to sell. So some of the things that you need

525
00:32:33.000 --> 00:32:36.400
to consider and you're going through, Hey, guess what. We're

526
00:32:36.400 --> 00:32:37.960
going to take a quick break. But when we come

527
00:32:38.000 --> 00:32:40.079
back from this quick break, what we're going to do

528
00:32:40.319 --> 00:32:42.960
is talking about what happens when you don't pay the

529
00:32:43.000 --> 00:32:46.359
irs out of this money when it comes due at

530
00:32:46.440 --> 00:32:49.680
tax town. Do that right after this, we.

531
00:32:49.680 --> 00:32:53.559
Have only scratched the surface of today's show. Please stand

532
00:32:53.599 --> 00:32:56.640
by as Barry G. Bower will be right back with

533
00:32:56.920 --> 00:33:02.839
tax talk for you. As an owner operator, you already

534
00:33:02.920 --> 00:33:06.440
spend too much time away from your family. Stop spending

535
00:33:06.480 --> 00:33:10.319
time doing paperwork. Go to Trucker tax tools dot Com,

536
00:33:10.400 --> 00:33:14.960
a solution built specifically for truckers Trucker Tax Tools dot

537
00:33:14.960 --> 00:33:20.640
Com makes your life run smoothly. Let's get back to

538
00:33:20.799 --> 00:33:24.480
tax stock for you with more tax stock once again.

539
00:33:24.960 --> 00:33:26.880
Here's your host, Barry G.

540
00:33:27.119 --> 00:33:30.279
Fallum.

541
00:33:30.400 --> 00:33:32.400
You know, I'm talking about selling your business and now

542
00:33:32.920 --> 00:33:37.319
you have implications out there on your side of the taxes.

543
00:33:37.680 --> 00:33:42.319
You know, don't expect a settlement with the IRS if

544
00:33:42.599 --> 00:33:44.160
you end up with a bunch of tax dead and

545
00:33:44.240 --> 00:33:47.559
you spend the money on frivolous things or other things

546
00:33:47.680 --> 00:33:50.920
or invested in another business. IRS is going to look

547
00:33:50.960 --> 00:33:52.759
at it and go, you have the money you can

548
00:33:52.759 --> 00:33:55.599
afford to pay. You just took our money and invested

549
00:33:55.640 --> 00:33:58.559
it somewhere else or spent at other places. The IRS

550
00:33:58.599 --> 00:34:01.200
doesn't take kindly to that. So you know, when you've

551
00:34:01.279 --> 00:34:05.359
sold your business and you're talking to your tax professional,

552
00:34:05.680 --> 00:34:08.119
you know, make sure that you set the money aside,

553
00:34:08.960 --> 00:34:12.840
make sure you still met your quarterly estimated tax payments

554
00:34:12.880 --> 00:34:18.280
that were required by law, and then you know, forward

555
00:34:18.320 --> 00:34:20.719
the money either to the IRS, put in an investment account,

556
00:34:20.760 --> 00:34:23.119
earn some interest on it, and then make sure you

557
00:34:23.119 --> 00:34:25.639
have it there to pay April fifteenth. You know, if

558
00:34:25.639 --> 00:34:28.840
you're going to have two hundred three hundred thousand dollars

559
00:34:28.840 --> 00:34:31.280
tax debt out of the million dollars you got from

560
00:34:31.280 --> 00:34:35.119
your business. Then you know that liability right there is

561
00:34:35.840 --> 00:34:39.400
going to come do on April fifteenth. And now maybe

562
00:34:39.440 --> 00:34:43.800
you've done things to mitigate your liability. Maybe you put

563
00:34:43.840 --> 00:34:47.559
more money into four oh one K and you set

564
00:34:47.599 --> 00:34:50.480
more money aside, you know, out of this profit from

565
00:34:50.480 --> 00:34:54.400
the business. You know, maybe you've sold property to ten

566
00:34:54.480 --> 00:34:57.800
thirty one exchange, so all those things that you've done

567
00:34:58.159 --> 00:35:04.880
can limit your live abilities with the IRS. But you know,

568
00:35:04.960 --> 00:35:08.559
if you don't have the money come April fifteenth to pay,

569
00:35:09.239 --> 00:35:12.000
the penalties and interest are going to accrue on that money,

570
00:35:12.159 --> 00:35:14.239
and then they're going to come looking for the money.

571
00:35:14.599 --> 00:35:17.079
So you know, be prepared to set up that installment

572
00:35:17.119 --> 00:35:20.119
agreement as soon as possible if that is the case.

573
00:35:21.280 --> 00:35:24.920
Or maybe somebody embezzled money from you, and then make

574
00:35:24.960 --> 00:35:27.239
sure you get a judgment against them and issue them

575
00:35:27.239 --> 00:35:29.119
at ten ninety nine and then you can write off

576
00:35:29.400 --> 00:35:33.400
that as a business expense as well. So you know,

577
00:35:33.440 --> 00:35:36.440
whatever the case may be, you want to make sure

578
00:35:36.559 --> 00:35:39.320
that you know you're dieting your eyes, crossing your t's,

579
00:35:39.440 --> 00:35:45.119
and getting in place from this business sale. And you

580
00:35:45.199 --> 00:35:50.599
want to make sure that everything is structured correctly as possible.

581
00:35:50.840 --> 00:35:54.639
So you know, what we are sitting down and talking

582
00:35:54.639 --> 00:35:57.639
about is you know, in the tax side of it. Now,

583
00:35:57.719 --> 00:35:59.960
get your lawyer involved and make sure that it's structured

584
00:36:00.039 --> 00:36:03.760
properly as well from a legal standpoint, because you know,

585
00:36:03.920 --> 00:36:07.320
a you don't want the liabilities, uh, you know how

586
00:36:07.360 --> 00:36:10.920
it's structured as well. This is really important if you're

587
00:36:10.960 --> 00:36:15.599
buying the shares of the business because you're also picking

588
00:36:15.679 --> 00:36:18.800
up what is considered to be the liabilities of the

589
00:36:18.840 --> 00:36:22.960
business as well. So, uh, you know, you've got to

590
00:36:23.039 --> 00:36:29.599
be very particular how you structure business sales in the

591
00:36:29.639 --> 00:36:32.639
sale of your business, and as a buyer, you want

592
00:36:32.679 --> 00:36:35.599
to be very particular how it's structured when you're buying

593
00:36:35.679 --> 00:36:39.599
the business. You know, your as sense your the liability

594
00:36:39.880 --> 00:36:42.599
what am I getting in this practice. So we were

595
00:36:42.599 --> 00:36:46.199
sitting down doing an analysis for one of our clients,

596
00:36:46.760 --> 00:36:50.280
and you know, we were looking at earnings before income

597
00:36:50.360 --> 00:36:54.760
tax weren't really strong and it was a two company deal. Uh,

598
00:36:55.199 --> 00:36:57.480
the first company we looked at was a little bit

599
00:36:57.480 --> 00:36:59.840
better than the second company, but we didn't even have

600
00:37:00.079 --> 00:37:03.719
of what was the asking price that they were wanting

601
00:37:03.880 --> 00:37:06.679
for the business. They just wanted an offer. Well, hard

602
00:37:06.719 --> 00:37:09.320
to make an offer when you don't know what they want.

603
00:37:09.480 --> 00:37:12.320
You just going to offer five dollars? You know what

604
00:37:12.360 --> 00:37:14.679
are you going to offer to purchase this business? Now,

605
00:37:14.719 --> 00:37:16.639
this business can be worth quite a bit of money.

606
00:37:16.840 --> 00:37:20.360
They had quite a bit of assets, but they were

607
00:37:20.360 --> 00:37:25.000
wanting to do a stock sale, not an assets sale.

608
00:37:25.119 --> 00:37:28.159
So you know, the company, if you divided it up

609
00:37:28.199 --> 00:37:30.800
and chopped it up and sold off the trucks and

610
00:37:31.280 --> 00:37:34.639
sold off the buildings, and you sold off this and

611
00:37:34.679 --> 00:37:36.639
you sold off that of it would be worth a

612
00:37:36.639 --> 00:37:42.079
lot more than buying the stock of the company because

613
00:37:42.599 --> 00:37:46.800
what depreciation value. So you know, you're buying the vehicles,

614
00:37:46.840 --> 00:37:50.119
and let's just say, you know they hit twenty vehicles

615
00:37:50.119 --> 00:37:52.239
and you set it at a half a million dollars

616
00:37:52.280 --> 00:37:56.320
on these vehicles. Those are depreciable assets for your new

617
00:37:56.599 --> 00:37:59.920
business venture you're starting. You bought this building for us

618
00:38:00.079 --> 00:38:04.039
say a million dollars, Well, it is now a depreciable asset.

619
00:38:04.280 --> 00:38:08.239
The advantage of the depreciation. Now, what's the company name work?

620
00:38:08.440 --> 00:38:11.639
You know, is the company name worth spending that kind

621
00:38:11.639 --> 00:38:15.000
of money? So one point five million dollars you buy

622
00:38:15.039 --> 00:38:18.400
the stock of the company. You have no depreciable assets

623
00:38:18.440 --> 00:38:21.639
because all the assets are fully depreciated except for maybe

624
00:38:21.679 --> 00:38:25.760
the building. And so now you know you're getting that

625
00:38:25.880 --> 00:38:29.239
little bit of depreciation the building that you bought, but

626
00:38:29.360 --> 00:38:32.239
the other assets aren't going to be depreciated at the

627
00:38:32.320 --> 00:38:34.960
same level. And then you know, what do they have

628
00:38:35.000 --> 00:38:37.239
the building on the books for? So maybe they have

629
00:38:37.320 --> 00:38:39.000
the building on the books for a quarter of a

630
00:38:39.039 --> 00:38:42.000
million dollars, but the building's worth a million. You lost

631
00:38:42.039 --> 00:38:47.119
that depreciation on the difference out you have shares versus

632
00:38:47.199 --> 00:38:50.079
the other. So you know you've got to watch that

633
00:38:50.199 --> 00:38:54.440
business structure as well. Now that can lead to tax

634
00:38:54.480 --> 00:38:59.320
consequences on you as the buyer because you had less depreciation.

635
00:38:59.519 --> 00:39:02.280
You're going to have potentially more net income from the

636
00:39:02.360 --> 00:39:05.679
business if you continue to conduct the business you know,

637
00:39:05.760 --> 00:39:09.159
the correct way, and increase maybe revenues and stuff out there.

638
00:39:09.199 --> 00:39:12.800
You have appreciated value that you can take as you're

639
00:39:12.800 --> 00:39:15.880
building this business. So you've got to be prepared to

640
00:39:15.920 --> 00:39:21.280
pay the additional potential future taxes out there as well.

641
00:39:21.360 --> 00:39:24.039
So you know, when we're talking about this, it's not

642
00:39:24.239 --> 00:39:27.079
just talking about it from the seller standpoint. We're going

643
00:39:27.159 --> 00:39:30.239
to talk about we talk about it from the buyer

644
00:39:30.400 --> 00:39:37.119
standpoints well and how you know you can best save money.

645
00:39:37.719 --> 00:39:42.239
A lot to consider in business purchase, lots to consider

646
00:39:42.519 --> 00:39:46.360
business sales, and we just scratch the surface of things

647
00:39:46.400 --> 00:39:52.039
that you need to consider out there as a business

648
00:39:52.039 --> 00:39:55.159
seller and a business buyer. You know the other things

649
00:39:55.159 --> 00:39:57.559
to be looking at if you're a business seller. Should

650
00:39:57.599 --> 00:39:59.719
I use a broker? Can I do this myself?

651
00:40:00.599 --> 00:40:00.800
You know?

652
00:40:00.840 --> 00:40:03.480
Sometimes the advantage of using the broker is that you

653
00:40:03.519 --> 00:40:07.039
can keep the identity of the business quiet, so that

654
00:40:07.079 --> 00:40:11.000
people don't know that you're selling the business until you

655
00:40:11.119 --> 00:40:15.440
get closer to having the sale, and you can continue

656
00:40:15.519 --> 00:40:18.559
to conduct business the best interest of the business without

657
00:40:18.639 --> 00:40:21.840
somebody looking over your shoulder. He's getting out anyway, or

658
00:40:21.880 --> 00:40:25.039
she's getting out anyway, or this isn't going to be

659
00:40:25.079 --> 00:40:28.840
the same. People look at these things and they read

660
00:40:28.880 --> 00:40:31.440
these things. When you're using a broker, sometimes this is

661
00:40:31.559 --> 00:40:35.320
private and quiet and not something that's out there that

662
00:40:35.760 --> 00:40:39.760
for the general population. And then it is on a

663
00:40:39.800 --> 00:40:43.400
non disclosure agreement so that the buyer is not disclosing

664
00:40:43.440 --> 00:40:48.599
who's talking and what they're doing. Other times, the sale

665
00:40:48.880 --> 00:40:53.000
is out there and it's absolutely public. Your staff knows

666
00:40:54.039 --> 00:40:56.880
and they bought into it, and they understand what's going

667
00:40:56.920 --> 00:41:00.480
on and the reasons for it and are going to

668
00:41:00.519 --> 00:41:05.400
help you find the best person for the company and

669
00:41:05.519 --> 00:41:11.239
them as well. So they've bought into this sale and

670
00:41:11.840 --> 00:41:16.079
everything is going to continue to run smoothly for the

671
00:41:16.119 --> 00:41:19.840
business and for for you. Well, you know, time flys

672
00:41:19.880 --> 00:41:24.639
were having fun. We this morning at nine o'clock Eastern time,

673
00:41:24.800 --> 00:41:27.760
we did ask the experts right here in W four

674
00:41:27.800 --> 00:41:31.400
CY Radio and talking about I R S problems and

675
00:41:31.480 --> 00:41:36.639
solving those IRS problems here today on tax Talk for you.

676
00:41:36.639 --> 00:41:39.840
You know, we're talking about selling your business. We're buying

677
00:41:39.880 --> 00:41:43.400
somebody's business and the tax implications in fact, and what

678
00:41:43.559 --> 00:41:46.800
some of the things you've got to consider, and you know,

679
00:41:46.840 --> 00:41:48.559
some of the ways that you can do it and

680
00:41:48.559 --> 00:41:51.760
the best ways of structuring the deal from both the

681
00:41:51.840 --> 00:41:55.000
buyer and the sellers perspective.

682
00:41:55.159 --> 00:41:55.679
Out there.

683
00:41:56.679 --> 00:41:59.519
Last week we also talked here on tax Talk for

684
00:41:59.639 --> 00:42:02.960
you about starting a new business. So you can go

685
00:42:03.039 --> 00:42:06.039
from starting a new business and growing that business to

686
00:42:06.199 --> 00:42:11.400
a great, big business something somebody values. And maybe you're

687
00:42:11.440 --> 00:42:14.079
ready to retire or you move on. Maybe you're ready

688
00:42:14.079 --> 00:42:16.400
for you get to the point where you want to

689
00:42:16.440 --> 00:42:20.239
sell your business, and that's what we are talking about here.

690
00:42:20.559 --> 00:42:24.599
So it's a great great things when life happens and

691
00:42:24.760 --> 00:42:27.840
goes down the road and you've been successful in your

692
00:42:27.880 --> 00:42:32.199
business and making money and it comes time to move

693
00:42:32.280 --> 00:42:36.159
on to that next challenge in life, whether it's you know,

694
00:42:36.239 --> 00:42:40.400
selling the business, opening another business, or just maybe you're

695
00:42:41.000 --> 00:42:44.760
out there and not wanting to sell the business. Maybe

696
00:42:44.760 --> 00:42:46.800
bring on new partners and how do you value the

697
00:42:46.840 --> 00:42:49.519
business as well. It's kind of the same steps you

698
00:42:49.599 --> 00:42:52.320
go through, but you add in, you know, hey, what

699
00:42:52.440 --> 00:42:55.000
is this partner bringing to this to this deal and

700
00:42:55.039 --> 00:42:57.679
then buy into the partnership. They pay for part of

701
00:42:57.760 --> 00:43:02.280
your interest in the business to join you and go forward.

702
00:43:02.360 --> 00:43:06.159
And sometimes that's a great way of slowly someone the

703
00:43:06.159 --> 00:43:08.480
business or grooming somebody in the business, but you got

704
00:43:08.480 --> 00:43:11.400
to make sure it's the right partner, right fit as what. Hey,

705
00:43:11.400 --> 00:43:14.960
we're right here on tax Talk for you. We're here

706
00:43:15.039 --> 00:43:19.320
every Mondays at ten am Eastern time. If I'm here,

707
00:43:19.679 --> 00:43:22.199
you should be here. And if you do miss one,

708
00:43:22.400 --> 00:43:25.000
go to tax Talk the number four letter YOUU dot

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00:43:25.039 --> 00:43:27.960
com or go over to Facebook and find us there

710
00:43:28.599 --> 00:43:32.239
or even on YouTube and follow us so that you

711
00:43:32.360 --> 00:43:36.639
never miss an episode of tax Talk. For you and remember,

712
00:43:36.639 --> 00:43:40.159
if you got tax problems, go to Taxation Solutions dot net.

713
00:43:40.480 --> 00:43:44.679
Let Taxation Solutions solve your tax problems and put them

714
00:43:44.679 --> 00:43:48.119
into bed once and for all. If your owner operator

715
00:43:48.159 --> 00:43:50.880
truck or ever go to tech Truck or tax tools

716
00:43:50.960 --> 00:43:55.199
dot com. Get over there for bookkeeping and tax help

717
00:43:55.280 --> 00:43:58.400
for your trucking company. I'd love to be of assistance

718
00:43:58.440 --> 00:44:02.159
for you and your business and helping you keep the

719
00:44:02.199 --> 00:44:04.719
truck on the road and not have to owe the

720
00:44:04.760 --> 00:44:06.880
I R S maximum amount, but get it down to

721
00:44:06.920 --> 00:44:08.960
the amount owed by the law. Hey, we have a

722
00:44:09.000 --> 00:44:11.599
lot of fun here every Monday at ten am Eastern

723
00:44:11.599 --> 00:44:14.960
time on W four c Y Radio. You got to

724
00:44:14.960 --> 00:44:18.079
be here with us. You get to learn new things

725
00:44:18.159 --> 00:44:21.639
and ask the questions to help save you and your

726
00:44:21.679 --> 00:44:25.119
business money. You know, whether you're buying a business, whether

727
00:44:25.159 --> 00:44:28.519
you're selling a business, whether you're starting a business, whether

728
00:44:28.519 --> 00:44:30.760
you owe the I R S. Whatever it may be,

729
00:44:31.159 --> 00:44:33.760
if you've got a question about it, We're here to

730
00:44:33.920 --> 00:44:36.960
answer your questions. So be here every Monday at ten

731
00:44:37.000 --> 00:44:40.400
am Eastern time on W four c Y Radio and

732
00:44:40.559 --> 00:44:43.920
Tax Talk the number four letter you dot com. Be

733
00:44:44.039 --> 00:44:47.760
here have a very guide. Blessed and glorious We enjoy

734
00:44:47.880 --> 00:44:50.519
what you do, but be here every Monday at ten

735
00:44:50.559 --> 00:44:52.000
am Eastern W.

736
00:44:52.039 --> 00:44:52.679
Four c Y.

737
00:44:52.880 --> 00:44:56.360
We will see you soon, see you next week. Have

738
00:44:56.480 --> 00:44:59.360
your questions ready and be here. Take care of you.

739
00:44:59.360 --> 00:45:01.639
Have a God bless.

740
00:45:01.800 --> 00:45:04.960
Are you an individual or business that wants to understand

741
00:45:05.039 --> 00:45:08.440
taxes and how they affect you. Are you looking for

742
00:45:08.480 --> 00:45:13.880
specific tax advice for self employed business owners and truckers.

743
00:45:14.480 --> 00:45:18.519
Are you behind on taxes and your bookkeeping? Are you

744
00:45:18.639 --> 00:45:22.639
dealing with dirs and ready to have some relief, Then

745
00:45:22.719 --> 00:45:26.400
you need Tax Talk for You, hosted by tax and

746
00:45:26.519 --> 00:45:31.239
trucker expert Barry G. Fowler EA. Tune in ten am

747
00:45:31.440 --> 00:45:35.440
Eastern time every Monday right here on W FOURCY Radio

748
00:45:35.519 --> 00:45:38.760
and Talk for TV. Don't forget to check this and

749
00:45:38.960 --> 00:45:43.519
past episodes at tax TALKFORU dot com. See you next

750
00:45:43.519 --> 00:45:48.039
week at W fourcy dot com