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How to sell your business to an employee

How to sell your business to an employee

The strategy that makes the transfer tax-free is called an intentionally defective trust (IDT) What is different about an IDT? It is the same as any other irrevocable trust, except the trust is not recognized for income tax purposes If your professional advisor ignores the use of an IDT in your succession planning get a second opinion

Own all or part of a closely held business? Someday the succession plan buzzer will go off. You would like to see the value of your business — in dollars — in your personal bank account. Wouldn't it be nice if all of those dollars came to you tax free? No income tax, no capital gains tax.

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TAGS: Taxes
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