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Exit Planning for Founders: How to Minimize Taxes in an Acquisition

Harness Wealth

This long-term approach gives you time to implement tax-efficient structures and build the business in ways that will be attractive to potential buyers. Setting clear financial goals and obtaining realistic business valuations early in the process helps you understand how timing impacts both taxes and overall returns.

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83(b) Election for Stock Options and Restricted Stock

Darrow Wealth Management

The 83(b) election has the potential to significantly reduce the overall tax liability, especially for startup founders and employees who receive stock-based compensation. It’s usually a key part of pre-IPO tax planning and exit strategies. Ensure your employer has a copy of the election also.

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The Ultimate Guide to Taxes on Secondaries

Harness Wealth

State and local taxes Secondary funds and their investors may face various state and local taxes, including income tax, franchise tax, and property tax. These taxes can vary significantly depending on the location of the fund, its investors, and its investments. FIRPTA planning using a U.S.

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What Triggers an IRS Audit?

Harness Wealth

You should consider using tax preparation software or consulting with a tax professional. Deducting business vehicles, meals, travel, and entertainment: Business deductions are a common source of tax errors and abuse, as they often involve a mix of personal and business expenses.

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The 2025 Alternative Investment Tax Guide for High-Income Filers

Harness Wealth

For long-term estate planning, Section 2032A offers special valuation rules for farmland, which can ease the burden of estate taxes. A tax professional can help ensure proper documentation to avoid this. When dealing with complex alternative investments, why is it crucial to consult a tax professional?

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Understanding the Tax Implications of Acquisitions

Harness Wealth

Tax planning serves as the cornerstone of the entire acquisition deal, extending far beyond a simple checkbox. Every element, from structure to price negotiations, hinges on understanding tax implications for all parties involved. To qualify for tax-free treatment under IRC Section 368 , attention to detail is essential.

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What is a Stepped Up Basis? Cost Basis of Inherited Stock and Other Assets

Darrow Wealth Management

Similarly, interests in a closely-held business will also need a professional valuation. These rules can be very complex and nuanced so its essential to consult with a tax professional and trust and estates attorney to understand the specific rules and current law in your state. The post What is a Stepped Up Basis?

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