Sale of Business Taxes?

I have a question, i have been wondering about for some time. If I were to sell my company in Nevada for let's say

60 million, and I own 100% of this company. How Much would the Government take of this sum? And is there ways around not paying taxes for sale of business?
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Reply to
Jay Search
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You could do a 1031 exchange of the assets. You must be very careful to exchange real estate for real estate, machinery for machinery of the same type, and other assets for assets with the same characteristics and class life. you would end up owning another business but you would avoid taxes on the exchange. Don't sell the assets of the business and then sell the stock to clear out the cash. I recently figured out the tax consequences of doing this for clients who had a large real estate holding in a C corporation. They would get less than

30% of the sale proceeds doing it this way. If they just sold the stock in the corporation they would keep almost 60%. It is cheaper to find a buyer for your corporation and pay the capital gains taxes at your personal rate. Then start a new corporation if you want to continue in business. Linda Dorfmont E.A., CFP, CSA
Reply to
DORFMONT

What's your cost basis in the business, and are you stucturing it as an asset sale or a stock/LLC interest sale?

Reply to
Shyster1040

Probably it's long term capital gain, so about 15% Federal.

They can be deferred, perhaps to your death. For instance, if you sold to a public company in a stock-for-stock merger, you'd own $60 million worth of their stock. (Of course, that would be taxable when you sold it.) There also used to be some special rules about selling out to an employee stock ownership plan, which let you defer taxes if you reinvested the money in securities. I don't know if they still apply. Seth

Reply to
Seth Breidbart

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