If you sell a business that you’ve operated as a sole proprietorship or single-member LLC (treated as a sole proprietorship for tax purposes), you automatically are making an asset sale.
To come out a winner, you need to know how the law taxes each of the assets.
The good news is that if you know what you’re doing, you can slash your tax bill and collect a lot more after-tax cash.
Want to find out how? Read my new article titled Tax Tips: Selling Your Business: How to Make Tax-Saving Price Allocations for an Asset Sale.
Three ways our fact-filled article can help you:
- When selling your business, we show you how to figure out your asset sales-tax results. In fact, we’ll provide fifteen tips, tricks, and techniques that can save you big money. You’ll get all this valuable information when you read the full article.
- We’ll explain the “Required Residual Allocation Method.” Under federal income tax rules, you have to use the residual method in order to allocate the total sales price from an asset sale. There are four steps you’ll need to take and we’ll explain them fully when you read the full article.
- You’ll learn how to avoid the attention of the IRS and fly below the radar. The smart thing to do is make sure that the buyer reports the same allocation on his/her Form 8594 that you report on your Form 8594. If different allocations are used, you raise the risk of an audit! You’ll get the whole story when you read the full article.