What Happens When You Sell a Business Asset?
We guide founders and deal teams through the practical side of disposing of equipment and other company property. When a piece no longer supports operations, a targeted sale can free cash and sharpen focus. Tax rules matter. The IRS requires reporting of such transactions on Form 4797 to determine gains or losses. That filing drives […]
Selling Your Business? Choose Between Stock or Asset Sale
We help founders and sponsors cut through jargon and make the core tradeoffs clear. Mike Rosendahl guides our approach to the practical tax and legal choices that shape any exit. Choosing an asset or stock structure fundamentally alters tax treatment, liability exposure, and net proceeds. That choice shapes purchase price, contract terms, and the timeline […]
Section 338(h)(10) Election Explained for Business Sellers
Section 338(h)(10) election in 2026 converts a stock sale to a deemed asset sale for tax purposes, giving buyers step-up in basis while preserving seller-friendly stock-sale mechanics. Eligibility: target must be an S-corp or C-corp subsidiary in a consolidated group. Day 1/day 2 mechanics: purchase price allocated to assets rather than stock, with recapture triggered […]
Stock Sale vs Asset Sale: Which is Better for Sellers?
Stock sale vs asset sale is the single biggest tax decision most business sellers ever face. Picking the wrong structure on a $10M exit can hand the IRS an extra $1.2M to $1.8M and leave you wondering why your wire was so much smaller than the headline number. This guide walks through the seller-side math, […]
Purchase Price Allocation: How It Affects Your Taxes
Purchase Price Allocation: How It Affects Your Taxes Quick Answer Purchase price allocation divides the total sale price into separate asset values, which determines tax basis, depreciation schedules, and reported gains or losses for both buyer and seller. The buyer uses the allocation to plan future tax deductions through depreciation and amortization, while the seller […]