The Internal Revenue Code Section 1202 allows regular C Corporation (RCC) stockholders to sell their companies tax-free, exempting gains up to $15 million or ten times the adjusted stock basis (whichever is higher), per taxpayer. However, this comes with several restrictions and pitfalls requiring careful planning, with implications varying across industries and types of business structures, emphasizing the need for RCC owners to consult with their tax advisors before proceeding.
Think selling your company without cutting Uncle Sam a check sounds too good to be true? Section 1202 makes it possible, but as with Vegas, the house sets the rules, and they just changed. If you’re feeling lucky, you might consider selling your comp...
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