Tax and Valuation Services for S Corporations Considering a Transaction
If you are considering buying or selling an S corporation, there are tax and valuation issues to evaluate well before you close the transaction. One is the built-in gains tax, an area often misunderstood.
Some executives believe that the built-in gains tax is static over time and, therefore, may lose out on valuable planning opportunities. Many S corporation owners sometimes mistakenly believe that they must wait 10 years after the S corporation election date to sell in order to contain their tax exposure. The built-in gains tax, however, may decline based on economic and asset changes that occur between the time of an S corporation election and the sale of the organization.
How you manage these and other complexities might be the difference between a successful transaction and a deal-breaker.
Deloitte’s tax and valuation specialists can help you understand and evaluate a transaction’s potential tax ramifications when buying or selling an S corporation. With experience in mergers and acquisitions and S corporation matters, they can bring a broad perspective as you evaluate your transaction.
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