Cornerstone Private Office

Tax Planning for Business Exits


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Business exits without advance planning routinely result in federal and state capital gains taxes, depreciation recapture, and estate taxes consuming 30–50% of sale proceeds. The four primary tools that change that outcome — ESOPs with Section 1042 deferral, installment sales, trust and family planning, and charitable remainder trusts — each require years of structural lead time to implement. With 79% of business owners planning to exit within a decade but fewer than 20% holding a written exit plan, this episode is designed to close that gap before the window closes. The owners who protect the most wealth model their scenarios long before a transaction appears on the horizon — and build their structures while they still have time to execute.
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Cornerstone Private OfficeBy Professor Jack Ledger