Tax Issues Every Business Broker Needs to Know – Part IV

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 IV – This section covers Installment Sales, Contingent Sales (Earnouts), Section 1031 Exchanges, Organizational Costs and Startup Costs. Seller financing is an element in most business transactions. Installment notes are expected to defer income recognition into future periods, but this does not always occur because of note design failures and sometimes just due to what is being financed. Earnouts are sometimes needed. The fundaments of earnouts will be covered as well as how to successfully integrate them into the overall structure with any time of loan. Learn how to use a Section 1031 Exchange for real estate. Additionally, the requirements for costs incurred by Buyers prior to opening for business will be covered.