Sierra Eckman Featured in Vancouver Business Journal
Recently, Sierra Eckman, Opsahl Dawson Shareholder and CPA wrote a column in the Vancouver business journal. If you’re planning on buying or selling a business in 2019, it’s a must-read!
In the article, you’ll learn strategies for planning and executing the transfer of a business. Sierra weighs the pros and cons of stock and asset transactions, as well as more advanced topics like depreciation and tax liabilities.
3 Key Tips & Top Takeaways
In a stock transaction, any gain will be taxed at capital gains rates and may not produce a favorable outcome from the buyer’s perspective
Installment transactions may work to the seller’s advantage by spreading out payments and profits, resulting in lower effective tax rates.
If the transaction involves an allocation to a noncompete clause or goodwill asset class, it’s important to remember that goodwill is taxed at a preferential capital gains rates in the year the cash is received.