Buying and Selling Corporate Businesses: Using Installment Obligations 2024
1.00 Credits
Member Price $49
Non-Member Price $59
Overview
When a corporate business is sold, it is common for part of the consideration received to include an installment obligation of the buyer. Weigh the tax consequences of using installment obligations as part of a corporation’s stock or asset sales. Discuss both S corporations and C corporations. Evaluate the use of a contingent purchase price. Analyze and identify tax planning opportunities.
Highlights
- Discussion of the law relevant to deferring gain using the installment method (IRC 453 and 453B(h))
- Description and analysis of the installment sale of the stock of both an S corporation and a C corporation
- The use of an installment obligation related to the sale of the assets of both an S corporation and a C corporation, including consideration of when to liquidate the corporation
- Evaluation of the tax consequences of a note with a contingent amount
- Tax planning opportunities and strategies
Prerequisites
An understanding of the basics of taxation of installment sales, individuals, corporations and S corporations.
Designed For
CPAs and attorneys.
Objectives
- Understand the general approach of installment reporting of gain (IRC 453)
- Discuss the tax consideration related to the installment sale of the stock of both S corporations and C corporations
- Review and evaluate the law related to the installment sale of assets of either an S corporation or a C corporation, including the decision on when to liquidate the corporation
- Analyze the tax law applicable when the installment note includes a contingent amount
Preparation
None
Leader(s):
Leader Bios
John McWilliams, CalCPA Education Foundation
<b.John McWilliams, CPA, JD, is Professor of Accounting at Golden Gate University. Previously he was a Professor of Accounting at San Francisco State University. He began his career as a tax adviser with a Big Four CPA firm. For more than 30 years, while teaching, he has been a tax adviser to lawyers and CPAs regarding the tax matters of their clients. Areas of expertise include tax issues related to buying and selling privately held businesses, financially troubled businesses, business restructuring and reorganization and ownership succession to employees or family members. Mr. McWilliams is active in CalCPA, having served as president of the San Francisco Chapter, chair of the Financial Literacy Initiative, a member of the CalCPA Board of Directors serving as Vice Chair. He is currently a member of the Taxation Committee, the Financial Literacy Committe, and the Accounting Education Committee. He has served as a California representative to the AICPA Council and is currently a member of the AICPA Financial Literacy Commission. Mr McWilliams is author of two chapters of the CCH Expert Treatise Library : Federal Taxation of Corporations & Shareholders.
Non-Member Price $59
Member Price $49