[USER]

We are at retirement age and are selling our business. We have received a proposal to sell for $1M – $500K down and the second half in payments over 5 years. We would like to minimize the taxes on the initial $500K payment. We would love to hear your ideas on what we could do. And do we need a tax attorney, a tax accountant, or something else? Any specific questions we should be asking of any professional we get to help us? Thanks for your input!

[Leslie]

You definitely need a tax professional bc you and buyer will need to allocate the purchase price among various asset classes and some of those asset classes are taxed as ordinary income and some are taxed as capital gains.

[Meghan]

Could you do something similar to seller financing with real estate where you’re getting monthly payments with interest, instead of a big lump sum up front?

[Cody]

You might consider contributing to a donor advised fund. It would basically front load some tax deductions. Then over the years giving you would like to do could be from that fund.

[Author]

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