Defer Taxes, Maximize Profits with 453A!
Kenner discusses strategies for lowering tax liability when selling a business. He introduces the concept of a 453A tax referral strategy, which allows business owners to defer taxes on the sale of their company by extending when they receive the money. He explains the process of a monetized installment sale, where the seller receives a tax-free loan nearly equal to the selling price and the buyer receives the asset.
He compares the benefits of a regular tax transaction to a 453A transaction and highlights the potential savings for sellers. He emphasizes the importance of working with experienced advisors and starting early to maximize the value of the business.
Takeaways
• The 453A tax referral strategy allows business owners to defer taxes on the sale of their company by extending when they receive the money.
• A monetized installment sale involves the seller receiving a tax-free loan nearly equal to the selling price and the buyer receiving the asset.
• Comparing a regular tax transaction to a 453A transaction can reveal significant savings in tax liability for sellers.
• Working with experienced advisors and starting early in the process can help maximize the value of the business and minimize tax liability.
Sound Bites
• Selling a business and want to keep your tax liability as low as possible, listen up because you're going to be happy you did.
• You're not paying taxes on the sale of your company, you're extending when you take receipt of the money.
• 453A allows you to postpone the tax bill and receive cash at the close nearly equal to the selling price.
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Phone: 415-212-8189
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Thank you for listening!
