Sep 172012
 
Transfer Of Business Assets In Florida May Come With State Tax Liability

A recently enacted Florida statute clarifies that the transfer of a Florida business’s assets is considered a sale of the business and that the sale may come with Florida tax liability.  Florida Statute § 213.758 states that when a taxpayer who is liable for taxes with respect to a business transfers either the business, the assets of the business, or the stock of goods of the business, the taxpayer must file a final return and make full payment of taxes within 15 days after the date of the transfer.  The statute goes on to state that a transferee, or a More…

Jul 162012
 

Assuming that the new healthcare law survives this year’s election in the current form, the new Medicare tax found within its provisions will likely complicate the tax consequences that stem from the sale of certain business interests.  Beginning in 2013, Section 1411 of the Internal Revenue Code will impose a new Medicare tax equal to 3.8% on the “net investment income” of U.S. individuals, estates and trusts.  Section 1411(c)(4) applies a “deemed asset sale” approach to the disposition of a partnership or S corporation interest in order to determine the amount of net investment income which arises from the transaction. More…

Sep 122011
 
Sale Of A Single Member LLC Presents Special Issues For Buyer And Seller

Generally, unless a single-member LLC elects to be treated as a corporation it will be considered a disregarded entity under the IRS check-the-box regulations.  Since the entity is disregarded, its assets, liabilities and operations are considered owned directly by the sole member. Thus, if the buyer purchases only the membership interest in an LLC and not the LLC’s individual assets under state law, federal tax law treats the acquisition of that interest as a direct purchase of the LLC assets. Consequently, a sale of the membership interest under state law will be considered a direct sale of the LLC assets More…

Apr 152011
 
Tax Implications of Selling A Small Business

If you own a small business, part of your retirement strategy may depend on the successful sale of that business at some point in the future. If so, proper tax planning is essential. From a tax perspective, how the sale of an LLC or corporation is structured can mean big consequences to both the buyer and the seller. One important question is exactly what is being sold? Will it be the business entity itself or just the assets? The answer to this question will depend on what the buyer and seller are trying to accomplish. Oftentimes, the seller wishes to More…