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Selling a Business? Know the Benefits of Donating Privately Held Business Interests

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If you’re a business owner who’s thinking about selling, you’re likely considering how to manage the future influx of income, as well as researching related tax implications. Did you also know you could potentially realize significant tax benefits by donating a portion of your business interests to a donor advised fund at the Sioux Falls Area Community Foundation?

In collaboration with their professional advisors, we’ve been helping individuals and families achieve their financial goals and fulfill their charitable wishes while navigating the sale of a business for nearly four decades.

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 you 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 our community

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 by working in collaboration with your team of professional advisors, so call us — we’re happy to lend our expertise!

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