About

Our business blog focuses on issues affecting Virginia, D.C. and Maryland business owners as well as those in other jurisdictions throughout the country. We provide timely insight and commentary on federal and state rules and how they affect you. If you are interested in having us cover a specific topic, please let us know.

contact us

Topics

Archives

Select Month:

Contributors

Posts tagged Taxes.

This is the second post in a series of articles wherein we will dive into the new “Opportunity Fund” program. In our first post, we described the general framework for the new Opportunity Fund program which you can find here

There are three tax benefits that investors in an Opportunity Fund can take advantage of, (i) deferral of gain from the sale of property, (ii) partial forgiveness of this gain, and most importantly, (iii) tax-free appreciation in the investment in an Opportunity Fund.

Gain Deferral

The first thing a taxpayer must do to take advantage of the first tax benefit is to invest the gain from the sale of property into an Opportunity Fund within 180 days of the sale.

July 2017
Facebook LinkedIn Twitter Email Print
Tags Taxes

Purchase price allocation and timing of payments are two of the issues to consider when structuring an asset sale or purchase of a business. The tax consequences can be enormous if assets aren’t allocated strategically.

Consider this scenario based on an actual client. John is an entrepreneur who starts a roofing company. John works very hard and builds up his business over the next seven years so that it is generating $500,000 per year. John is approached by a national roofing company that wants to purchase his business for $1,000,000, plus an earn out of $500,000 for the next 12 months and a promise that John will not compete with the sold business.