News for Professional Advisors

Are Your Clients Selling a Business?

Business meeting

If you have clients who are considering the sale of a business, they’ll likely need guidance on how to manage their future influx of income, as well as information on related tax implications. Don’t miss the opportunity to advise your clients of the potential to realize significant tax benefits by donating a portion of their business interests to a donor advised fund.

As you know, selling a business, or business interests, often creates a significant financial windfall — and a correspondingly large capital gains tax.

Donating some of the ownership interest can provide your client with three key benefits:

  • A charitable tax deduction for the fair market value of the donated interest
  • Minimized capital gains exposure for the portion donated
  • The opportunity to make a difference in the community they call home

The Foundation has been working with advisors to help clients navigate the sale of a business for nearly four decades. In many cases, a donor advised fund has proven to be the perfect giving vehicle to help these individuals and families achieve their financial goals and fulfill their charitable wishes.

Perhaps the most important thing? Contact us before it’s too late. Discussions need to start early in the process, or there may be unavoidable tax consequences. We’re here to help, so call us — we’re happy to lend our expertise! Contact us at 605.336.7055.