Dream Until the Dream Come True?[i]
Ask the owner of a closely held business to describe their most recently recurring nightmare and you are likely to get an earful regarding the prospect of an increased federal income tax on their profits, an increased federal tax on the long-term capital gain from the sale of their business, the imposition of a federal mark-to-market tax on the gain accrued in their business at the time of their death, and the imposition of a federal estate tax determined on the basis of a greatly reduced exclusion amount.[ii]
Basically, the worst parts of Mr. Biden’s tax proposals, as set forth in his American Families Plan.[iii]
Ask the same business owner to describe their fondest dream – no, not that one – and they may describe a scenario in which they sell their business for cash but, at the same time, are able to defer the recognition of the gain for many years.[iv]
Too Good to be True?
Continue Reading Cash in Hand, Tax Deferral, Monetized Installment Sales: No, You Can’t Have It All