Nyar Tax

1. EMPOWERED CLIENTS COMPREHENSIVE Solutions • Nyar Tax www.nyartax.com

2. Selling Your Business? Don’t Let the Tax Tail Wag the Deal You’ve spent years building something valuable. The buyer is interested. The numbers look good. Then the conversation shifts to after-tax proceeds, and suddenly the deal that looked great starts feeling hollow. That gap between what you’re selling for and what actually lands in your account? That’s where most business owners get blindsided.

3. Why Your Sale Price Isn’t Your Take-Home When you sell a business, you’re not just walking away with the purchase price. You’re dealing with capital gains taxes, potentially recapture taxes on depreciation, state taxes depending on where you operate, and sometimes local taxes layered on top. Each one bites into proceeds you thought were locked in. Here’s what makes it worse: the timing of when you recognize income, how you structure the transaction, and what assets you’re actually selling all affect your final tax bill.

4. The Difference Between Planning Early and Scrambling Late When you bring in a tax resolution early before you’re in active negotiations they can structure your affairs to minimize what the government takes. This might mean adjusting how you’ve been depreciating equipment, reorganizing entity structure, or timing certain deductions strategically. None of this is creative accounting. It’s just recognizing that tax law has legitimate strategies, and using them before you’re locked into a deal.

5. The Mechanics That Actually Matter Let’s say your business generates $2 million in annual revenue and a buyer offers $5 million. The sale isn’t structured as one clean transaction. There’s goodwill, there’s inventory, there’s equipment, there’s non-compete agreements. Each component gets taxed differently. Goodwill gets capital gains treatment (better). Recapture on depreciated equipment gets taxed as ordinary income (worse). A non-compete payment might be amortized over years, spreading your income recognition differently than a lump-sum goodwill payment.

6. What Changes When You Start Early Bringing in a tax attorney nine or twelve months before you plan to sell gives you time to optimise. You might adjust the entity structure. You might time certain expenses differently. You might recognise gains strategically in lower-income years before the sale. You might establish timing for deductions you hadn’t fully utilised. None of this requires hiding anything or getting creative with the rules. It’s just using the tax code the way it’s written, on purpose, instead of accidentally.

7. Thank You Telephone +18889952015 Email support@nyartax.com Website www.nyartax.com