Top Five State and Local Tax Issues to Consider When Buying the Assets of a Business |
Depressed values during an economic downturn may motivate corporate decision-makers to acquire businesses in an effort to improve enterprise capability, market penetration, product mix, and the production process. While business strategies drive the decision to acquire a particular business, the form of the transaction drives a multitude of tax implications. When choosing to acquire the assets of a business, a number of state and local tax issues can significantly affect the overall acquisition cost. The following discussion examines the top five state and local tax issues to consider when acquiring the assets of a business. These issues are:
- The seller's unpaid taxes.
- Taxes triggered by the transaction.
- Credits and incentives.
- Income and franchise taxes.
- Sales and use tax processes.
The failure to address such matters can take what looks like a good strategic decision and turn it into a poor investment.
Read more about these issues in the attached article written by ILENE L. PORWANCHER, J.D., CPA, is a Director with Deloitte Tax LLP's Multistate Tax Practice in Chicago, Illinois.
Top Five State and Local Tax Issues to Consider When Buying the Assets of a Business
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