Pay Zero Capital Gain Taxes
Taxes on Sale of Small C Corporation
Let’s say you are selling your business, and the sale produces a $5-million capital gain.
How much federal tax will you need to pay? The surprising answer is . . . Zero! not a penny. How can you get this terrific deal?
Here’s the answer . . . To set off your business as a tax-code-defined “qualified small business corporation” (QSBC).
More good news. The Tax Cuts and Jobs Act (TCJA), makes the QSBC even more attractive, with its new 21-percent corporate tax rate.
For a better description, you can read my new article. You’ll get the whole story on that article.
Our fact-filled article can help you in three ways:
You’ll learn what makes QSMCs special.
The difference between a QSBC and a garden-variety C corporation is that QSBC stock is potentially eligible for a 100-percent federal income tax gain exclusion break (think tax-free capital gains), and a federal-income-tax-free gain rollover break (again, think tax-free). We’ll give you all the details.
How you’ll get benefit from setting up a QSMC for that, you’ll use three examples which we are going to explain it here.
You’ll learn about the tax rate on QSBC income versus the tax rate on pass-through equity income, the 10-times-the-basis limitation, the $10-million limitation.
Guidance will be provided for QSBC opportunities, regulations, and rules.
This fact-filled guide offers a valuable introduction to how the QSBC can save you a lot of money. So, don’t miss this fact-filled guide.