Slash Your Tax Bill When Selling Your Business

About the Episode

Don’t miss the boat on massive tax savings when you sell your company—most business owners wait too long and pay millions more than they should. Discover a powerful, decades-old strategy to legally defer nearly all your capital gains taxes and secure a lifelong income stream after your business exit. Learn when to act and exactly which experts to assemble for your winning exit planning team.

Don’t get so hung up on what the lawyer costs you. Focus on the tax strategies that can save you 10 or 15 times that amount.

Jude David

What You’ll Learn

• Start Tax Mitigation Early to Maximize Your Savings: You must implement the most powerful tax strategies before entering a binding purchase agreement to ensure compliance with the IRS and avoid having the transaction deemed a “sham” for tax avoidance. Planning early maximizes the legality and effectiveness of your capital gains tax deferral.
• Use a Charitable Remainder Trust (CRT) to Defer Capital Gains: Learn how donating a percentage of your company’s stock to a CRT before a sale can legally remove that portion of the proceeds from immediate taxation, potentially deferring millions in business sale taxes and generating a significant tax deduction.
• Choose the Right Income Stream: CRAT vs. CRUT: Understand the critical difference between a Charitable Remainder Annuitized Trust (CRAT), which provides a fixed annual payout but risks running out of funds, and a Charitable Remainder Unit Trust (CRUT), which adjusts the payout based on investment performance, offering protection against market downturns and maximizing long-term wealth preservation.
• Align Your Financial, Legal, and Tax Experts: Selling a business and structuring tax deferral strategies requires a “dream team” of a financial planner, tax attorney, and CPA. Your financial planner should be your first call to map out your holistic post-sale income and charitable goals before incurring high legal and accounting fees.
• Gain Post-Exit Purpose with a Donor Advised Fund (DAF): Discover how setting up a DAF lets you take a large tax deduction now by donating stock or cash, and then allows the funds to grow tax-free until you are ready to grant them. A DAF provides a rewarding, ongoing purpose after your business exit by actively managing your family’s philanthropic legacy.

Topics Covered

Want More? Related Resources:

• Allocation of Purchase Price & Taxes When Selling a Business
• Can you sell your business and pay $0 in federal income tax?
• Why You Need To Think About Taxes Early When Selling a Business

Meet Our Guest

Jude David

CEO of Kin Capital Partners | Lafayette, LA

Jude David is Managing Partner of Final Ascent (FAMergers.com) and Chief Executive Officer of Kin Capital Partners, the parent company of Stately Doors & Windows and the Stately family of brands. As a Louisiana native turned corporate attorney and investment banker, he is passionate about helping business owners achieve growth while also strategically planning for an exit. His specialty is the art of the acquisition, focusing on finding the right buyer, negotiating a deal that creates maximum value for everyone involved, and setting business owners up for a lifetime of success after the sale.

LinkedIn: https://www.linkedin.com/in/jude-david-jd-dcl-mba-172a6a76/