What to keep in mind
Analyze cost basis, sale price, residence, timing, reporting and potential withholding or other applicable obligations.
Agreeing on a net price without tax analysis may produce an unexpected economic result.
Distinctions often confused
Taxation of a share sale is not necessarily identical to taxation of business assets.
Frequently asked questions
Should tax consequences be reviewed before setting the sale price?
Yes, to understand the seller's actual proceeds.
Can buyer and seller allocate taxes by contract?
They can negotiate contractual allocation, subject to mandatory tax rules.
Informational content. It is not a substitute for professional advice.