Consider this…
Let’s say you sell your business and the sale produces a $5-million capital gain.
How much federal tax will you need to pay? The surprising answer is … zero! … not a penny. How can you get this terrific deal?
Here’s the answer … operate your business as a tax-code-defined “qualified small business corporation” (QSBC).
More good news. The Tax Cuts and Jobs Act (TCJA), with it new 21-percent corporate tax rate, makes the QSBC even more attractive.
You’ll get the whole story when you read my new article titled Tax Tips: Wow! Pay Zero Capital Gains Taxes on Sale of Small C Corporation!
Three ways our fact-filled article can help you:
- You’ll learn what makes QSMCs special. The difference between a QSBC and a garden-variety C corporation is that QSBC stock is potentially eligible for a 100-percent federal income tax gain exclusion break (think tax-free capital gains), and a federal-income-tax-free gain rollover break (again, think tax-free). We’ll give you all the details when you read the full article.
- We’ll use three examples to show you how you’ll benefit from setting up a QSMC. You’ll learn about the $10-million limitation, the 10-times-the-basis limitation, and the tax rate on QSBC income versus the tax rate on pass-through equity income. You’ll get this important information when you read the full article.
- We’ll provide a guide to QSBC rules, regulations, and opportunities. Don’t miss reading this fact-filled guide. It provides a valuable introduction to how the QSBC can save you a lot of money. All will be explained when you read the full article.