During a conference call with clients today, McManus & Associates Founding Principal John O. McManus presented a case study to highlight the various planning opportunities that arise when a business has the potential to be acquired. What are the most important planning considerations in anticipation of a liquidity event for a private business? Read on and listen to the call recording:
1. What are the practical steps that must be taken to change domicile?
2. Are there strategies for certain businesses to eliminate or minimize state income tax upon the sale of a business?
3. What is the QSBS exclusion and how can it serve to reduce federal capital gains tax in the event of the sale of a business?
4. How can a Trust further amplify income tax savings by leveraging the QSBS exclusion?
5. How do Charitable Remainder Trusts serve as an income tax deferral strategy?
6. Why does the transfer of interest in a business present a significant opportunity to minimize future estate tax?
7. What are valuation discounts and how do they enhance potential estate tax savings?
8. What are common ways that a Trust can provide flexibility for the donor or his or her spouse to access or control the proceeds of a business that has been transferred?
9. Why should a life insurance advisor be consulted when an acquisition is anticipated?
10. Why is preparation well in advance of a sale essential to optimize tax outcomes?
For advice tailored to your unique situation, needs and goals, contact McManus & Associates at 908-898-0100.
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