Selling Your S Corporation: Is It Now Or Never?
With improving corporate confidence, increasing political certainty, and strengthened balance sheets, conditions appear to be ripe for increased M&A activity in 2013. This could be an opportune time for S corporation owners who are contemplating selling their businesses. Absent any addition tax law changes, the recognition period for built-in gains tax will revert back to ten years after 2013, which may make it more advantageous, from a tax perspective, to complete the sale of an S corporation before December 31, 2013.
In this article, we describe issues that S corporation owners should carefully consider so they understand potential impacts on the economics of the transaction, tax results and their individual financial objectives.