Tax Issues Every Business Broker Needs to Know – Part III

This course is part of a series of four separate four-hour sections. Each section is a standalone, yet collectively, they form a fundamental knowledge foundation essential to a business broker’s understanding of the tax implications that occur in a business transaction.

Part III – This section covers Tax Basis, Entity Types and Transaction Costs. This section enables a participant to understand how tax basis impacts tax liability, and the different ways tax basis gets developed, such as cost, gift, bequeath, and exchange. Can an inherited business provide a tax benefit to a Seller? This section will help answer this question. Options exist for the type of entity from which to operate a business. The fundaments of the four primary operating entities will be explored. What are the tax requirements for transaction costs such as broker success fees, legal costs, accounting costs, business valuation costs, etc.? The way a Seller and Buyer are impacted by these costs will be covered.