Frequently Asked Questions

9. How can a tax and corporate attorney help me in the sale or acquisition of a business?

A good attorney will review a sales transaction for the seller to maximize the opportunity that the seller will receive full payment for the business, and to make sure the least amount of taxes are imposed. On the buyer's side, an attorney can suggest ways of structuring the transaction to protect your new business, and to get the most out of tax deductions. Mr. Cohen will explore with you the possibility of having some of the sales proceeds treated as a capital gain, rather than ordinary income; installment-sale treatment, rather than recognizing all the gain immediately; and expensing the investment immediately, rather than amortizing it over a period of one year and avoiding depreciation recapture. Paying attention to such issues with your attorney and certified public accountant working as a team will make for a more successful transaction.