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Mesa Tax Lawyers Helping With Business Transaction Taxes

Let a trusted attorney guide you

A business might be the most significant investment you ever make, and you need an experienced Mesa tax lawyer who understands tax law and is well-versed in tax planning and asset protection to make sure it's legally protected.

The decision to buy or sell a business doesn't come quickly or easily. You need to understand all of the long-term implications of your purchase or sale, and that includes significant tax implications.

Mesa tax attorney Shad M. Brown and Mesa business attorney Scott T. Jensen have the experience and legal knowledge needed to advise business buyers and sellers at every stage of the purchase and sale process. Trust the legal team at Brown & Jensen to give your transaction the attention it deserves. Contact us today for a free consultation.

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What are the tax implications of buying or selling a business?

For tax purposes, if you are buying a business, an asset purchase is usually to your advantage. In an asset purchase, you can obtain a stepped-up tax basis in the purchased assets, which can create opportunities for tax write-offs. If you purchase a business entity, you are acquiring the fully or partially depreciated value of the assets, which does not affect the tax basis.

As a seller, your tax interest is just the opposite, and an entity purchase is usually advantageous. This is because you can report the entire gain from the sale as a capital gain on your tax return. In an asset sale, you may have to report large amounts of ordinary income rather than capital gains because the assets may have depreciated or be subject to recapture. Moreover, if your business is a corporation, stockholders may be subject to double taxation.

In addition, remember that an entity purchase transfers any existing tax liabilities from the seller to the buyer, whereas an asset purchase generally does not. For example, if the business owes back taxes, then in an asset purchase, those taxes would remain the responsibility of the original owner. An entity purchase, on the other hand, would make those back taxes the responsibility of the new owner.

Let a Mesa tax lawyer help you move forward

Whether you are trying to sell your business or you're looking to make an acquisition, having an experienced Mesa tax lawyer in your corner throughout the process can prove to be essential.

Our legal team can provide you with information and research that's important for your transaction and help resolve any issues that pop up in the process. Don't go into a business purchase or sale alone. Trust the Mesa tax attorneys at Brown & Jensen to look out for your best interests. Contact us today for a free consultation.

3850 E Baseline Rd, Suite 112
Mesa, AZ 85206
(480) 447-7107
7473 E. Tanque Verde Road
Suite 100
Tucson, AZ 85715
(520) 822-8239
9375 E. Shea Blvd.
Bld 100, #214
Scottsdale, AZ 85260
(480) 771-2261
1300 North McClintock Drive
Suite B4
Chandler, AZ 85226
(480) 418-8641
14441 W. McDowell Road
B102 Suite E
Goodyear, AZ 85395
(623) 232-0674
14050 N. 83rd Avenue
Suite 290H
Peoria, AZ 85381
(623) 900-1823
40 N. White Mountain Road
Suite A
Show Low, AZ 85901
(928) 813-0417
630 E. Highway 260
Suite B
Payson, AZ 85541
(928) 478-8833