The Purchase and Sale of an Unincorporated Business
The value of a business is the present value of the future net-of-taxes cash flows the business will produce. A tax adviser has little influence over the pattern of future revenues a corporation may earn, but the tax adviser may have some influence over the deductions allowed in calculating the taxable income. An important determinant of future tax deductions is how the purchase price is allocated among the assets.
Assets Valuations
The basic assets of an unincorporated business can be viewed as future tax deductions that will yield cash flow equal to the owner’s marginal tax rate in the year of the deduction multiplied by the amount of the deduction. The tax lives that are used ...
Get The Tax Aspects of Acquiring a Business now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
