Stepped-up Basis – DougFreemanCPA.com

It’s important to understand how taxes factor into M&A transactions

Assets, C Corporation, Federal Income Tax, LLC, Merger & Acquisition, Partnerships, Past-Through Entities, S Corporation, Small Business, Small Business Owners, Small Business Stock, Small Business Tax Tips, Stocks, Tax Considerations for Selling Your Business / Douglas Freeman

In recent years, merger and acquisition activity has been strong in many industries. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets. From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock […]

It’s important to understand how taxes factor into M&A transactions Read More »

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis”

Assets, Estate Planning, Estate Tax, Federal Estate Tax, Stocks, Tax Planning / Douglas Freeman

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. How do the rules work? Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis” Read More »

There’s a favorable “stepped-up basis” if you inherit property

Estate Planning, Estate Tax, Gift and Estate Tax, Real Estate / Douglas Freeman

A common question for people planning their estates or inheriting property is: For tax purposes, what’s the “cost” (or “basis”) an individual gets in property that he or she inherits from another? This is an important area and is too often overlooked when families start to put their affairs in order. Under the fair market

There’s a favorable “stepped-up basis” if you inherit property Read More »

How do taxes factor into an M&A transaction?

Assets, C Corporation, Federal Taxes, Income Tax, LLC, Merger & Acquisition, Partnerships, S Corporation, Small Business, Stocks / Douglas Freeman

Although merger and acquisition activity has been down in 2022, according to various reports, there are still companies being bought and sold. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets. From a tax standpoint, a transaction

How do taxes factor into an M&A transaction? Read More »

Dodge the tumult with a buy-sell agreement

Buy-Sell Agreement, Capital Gains, Gift and Estate Tax, Small Business, Small Business Owners / Douglas Freeman

Businesses with multiple owners generally benefit from a variety of viewpoints, diverse experiences, and strategic areas of specialization. However, there’s a major risk: the company can be thrown into tumult if one of the owners decides or is compelled by circumstances, to leave. A logical and usually effective solution is to create and implement a

Dodge the tumult with a buy-sell agreement Read More »

There’s currently a “stepped-up basis” if you inherit property — but will it last?

Estate Tax, Gift and Estate Tax, Tax Planning / Douglas Freeman

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So,

There’s currently a “stepped-up basis” if you inherit property — but will it last? Read More »

What are the tax implications of buying or selling a business?

Business Income Tax, C Corporation, Federal Income Tax, Partnerships, Past-Through Entities, S Corporation, Small Business, Tax Planning / Douglas Freeman

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal. Under current tax law,

What are the tax implications of buying or selling a business? Read More »