Close Menu
    Facebook X (Twitter) Instagram
    • Contact Us
    • About Us
    • Write For Us
    • Guest Post
    • Privacy Policy
    • Terms of Service
    Metapress
    • News
    • Technology
    • Business
    • Entertainment
    • Science / Health
    • Travel
    Metapress

    Tax Strategies to Consider When Selling a Business – with Anthony Cavaluzzi

    Lakisha DavisBy Lakisha DavisJanuary 3, 2022
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Tax Strategies to Consider When Selling a Business - with Anthony Cavaluzzi
    Share
    Facebook Twitter LinkedIn Pinterest Email

    In today’s market environment, there are a lot of reasons why business owners would consider selling their business.  But, whether they just want to take a well-deserved retirement, start a new project, or just get out ahead of various market pressures and rapidly rising inflation it’s absolutely crucial that they consider the tax implications of their sale. 

    Tax expert Anthony Cavaluzzi has some advice for business owners who are looking to sell:

    1.  Consider your asset allocation

    According to Anthony Cavaluzzi, sole proprietors often overlook the importance of classifying assets when it comes time to sale.  The IRS has seven different categories of assets, and each of them has their own capital gains tax implications.  Hire a professional to negotiate your sale if you’re unfamiliar with this portion of the tax code.

    2.  Anthony Cavaluzzi says to look at the difference between stock and assets

    Selling the assets of a corporation has very different tax implications than selling stock.  If a business owner is selling his or her stake in a corporation, odds are the buyers will prefer to purchase assets because they can depreciate the assets on their tax returns.  But sellers will want to classify as much of the sale as possible as stock in order to avoid capital gains taxes on their end. 

    3.  Consider if an installment sale is right for you

    According to Anthony Cavaluzzi, installment sales are a great way to spread out tax liabilities over several years.  The disadvantage to this plan, however, is that the buyer could default on the sale midway through the agreement.  This could have disastrous implications for the overall plan to sell the business. 

    4.  Sell to your employees

    One of the most overlooked methods to sell a  business, according to Anthony Cavaluzzi, is to sell stock to its employees.  Not only does this help the business to retain a lot of its value by retaining highly trained and knowledgeable employees, it can also allow the owner to sell pieces of the company gradually; spreading out taxes over multiple years.  Furthermore, this method allows all of the assets to be sold as shares in the company, a situation that is highly advantageous to the seller.

    If you’re selling your business or a stake in a business that you own a part of in the near future, it’s worth it to pay for professional advice in regards to the tax implications of the sale.  For many business owners, the sale of their business is one of the largest financial transactions they’ll ever make.  Anthony Cavaluzzi has seen simple mistakes such as misclassifying assets cost business owners millions of dollars in taxes.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Lakisha Davis

      Lakisha Davis is a tech enthusiast with a passion for innovation and digital transformation. With her extensive knowledge in software development and a keen interest in emerging tech trends, Lakisha strives to make technology accessible and understandable to everyone.

      Follow Metapress on Google News
      Exciting Online Football Games with Low Entry and High Rewards
      October 22, 2025
      How E-commerce Sellers Use VisualGPT’s AI Watermark Remover to Transform Product Images
      October 22, 2025
      Eye Of Rah Haircut: History Meets TikTok Humor
      October 22, 2025
      What Is Kekw: The Story Behind the Meme
      October 22, 2025
      Satisfactory Alternate Recipes: Recipes for Satisfactory Hard Drives
      October 22, 2025
      The Hidden Power of Rewards in Modern Gaming
      October 22, 2025
      Crypto Exchange Trends for 2025: What White-Label Solutions Bring to the Table
      October 22, 2025
      The Architects of Automated Retail: Who Builds the Modern Vending Machine?
      October 22, 2025
      The Parents’ Guide to Choosing Safe and Functional Toddler Furniture
      October 22, 2025
      Beyond Tech Support: Unlocking Performance with IT Professional Services
      October 22, 2025
      Ford Trucks in Thailand 2025: Powerful, Reliable and Heavy-Duty Pickup Solutions
      October 22, 2025
      Precision CNC Machining and Rapid Prototyping: The Ultimate Guide to Accelerating Innovation for Modern Industries
      October 22, 2025
      Metapress
      • Contact Us
      • About Us
      • Write For Us
      • Guest Post
      • Privacy Policy
      • Terms of Service
      © 2025 Metapress.

      Type above and press Enter to search. Press Esc to cancel.