Blogging is the new form of communication that enables us to voice our opinions, to ask questions and get questions answered.
The Venture Point Business Blog was created for business owners, potential business owners, CPA’s, business Attorneys and Business Brokers, to ask questions, submit articles, tips or ideas that people may be in need or help with.
As a small business owner, I’m always looking for information on ways to run my business more efficiently, networking communities that I can reach new colleagues and clients, and opportunities to grow Venture Point.
If you would like to submit an article that you feel would be informative for business owners/potential business owners please contact Karen@VenturePointOnline.com.
Karen Torbett
As an owner of a start up business, I found the most important thing to success was surrounding myself with people who knew what they were doing. As a physician, I knew my medicine but the ins and outs of running the business aspect could be daunting. We were able to hire someone with experience to run the business part of our practice and explain to us in terms we understood what was going on. We also found consultants to get us up and running. I think your site with its links will help someone looking at buying a business have more confidence by providing valuable resources and incite on what to do to be successful.
I am trying to find info on elling my business to my daughter. Are there ways to getting around the Capital Gains? I am giving her a no interest loan and she will make payments to me for 10 years.
Thank you.
Dixie
there are too many variables to answer such a general question. Basically if it is your intention to sell the business at a gain you will be paying tax on the gain, (the excess of your net proceeds over your basis). You must decide if you are going to sell the assets of the business or your stock which can have a major impact on the type of gain your report. Generally a seller perfers to sell their stock and all the gain is LTCG taxed at a maximum rate of 15%. If you sell assets that have been depreciated your maximum rate can be anywhere from 10%-20% higher on the amount of depreciation that is subject to recapture. Here lies many opportunities to minimize the tax. Since your daughter will paying you over 10 years at least you will be able to pay the tax over that same period.
Steven Hamic
Hamic Jones Hamic Sturwold CPA’s