Tax Planning Archives - CT Acquisitions

Understand the Tax Implications of Selling Your LLC Membership Interest

tax implications of selling llc membership interest

We help founders and buyers cut through complexity. This guide, published August 25, 2025, maps the key issues when transferring ownership in a limited liability company. Practical clarity. You will learn how a sale changes taxable income, affects capital gain calculations, and shifts basis for both buyer and seller. Many states treat an LLC as […]

Section 338(h)(10) Election Explained for Business Sellers

Section 338h10 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 […]