The IRS does this because interest is taxed as income, which is typically taxed higher than capital gains. Thus, even if selling something via seller financing, you need to consider the interest or ...

Berman v. Comm’r, 1 released on July 16, 2024, is a great example of making lemonade when life hands you a lemon. Although the taxpayers lost the federal income tax deferral of a stock sale to an ...

As part of its enforcement efforts, the IRS annually identifies what it describes as potentially abusive transactions that taxpayers should avoid.[i] According to the agency, some of these ...

An installment sale occurs when property is disposed of and at least one payment is received after the tax year of the disposition. See I.R.C. § 453. Under a standard installment sale, the buyer makes ...

When alternative structures to sell a closely held corporation are under consideration, a sale of stock to an employee stock ownership plan (ESOP) may offer tax benefits to the seller. Among those ...

We have previously spoken about monetized installment sales (“MISTs”) on Dollars & Sense. According to the IRS, these structures typically seek to defer gains associated with the sale of an ...

Recently, a manager of a private equity fund mentioned that the seller of the business was complaining about the amount that the seller will have to pay in commissions, fees and capital gains taxes.