Self-Study
Buying and Selling a Business: Critical Tax and Structuring Issues
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Monday, May 1, 2023 – Tuesday, April 30, 2024
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8.00CREDITSTaxes
One of the major transactions CPA clients are faced with is the purchase or disposition of a business. To help tax professionals advise those clients, this course offers a comprehensive analysis of the business and tax aspects of buying and selling a business. It is a practical guide to help practitioners and industry CPAs understand structuring techniques. All CPAs, including controllers and executives in industry, should understand how difficult the process of buying and selling a business has become.
Objectives
- Understand the factors that must be considered for due diligence and developing a valuation
- Understand the goals and methods of negotiating the final purchase price
- Identify the different tax consequences of various forms of acquired businesses, including the impact of the net investment income tax (NIIT) and the §199A pass-through deduction
- Appreciate §338 and §338(h)(10) elections and the benefits of installment sales
- Learn how strategies have changed under new tax legislation
- Understand the required reporting to the IRS regarding the purchase or sale of a business and how to complete the forms
Highlights
- An overview of the business evaluation process
- Negotiation points and goals from buyer and seller standpoints
- An overview of confidentiality agreements, memorandums of understanding, and asset purchase agreements
- Recognizing the need for due diligence in acquisitions, including checklists of important points
- Deemed asset sales – §338 and §338(h)(10)
- The use of “F reorganizations” in lieu of §338(h)(10)
- The impact of the §197 amortizable intangibles regulations on the acquisition and disposition of a business
- Allocating purchase price for tax advantage
- Impact of the net investment income tax (NIIT) and the §199A pass-through deduction on the tax due on the sale of a pass-through entity
- Changes in strategy under the new tax laws
- Liquidation as an alternative to the sale of a business
- Planning to avoid double taxation
- Special problems and opportunities when an S corporation is the buyer or seller
- Installment sale and interest issues
- Avoiding tax pitfalls and recognizing tax planning opportunities