• Transaction Expense Tax Benefits Can Enhance Seller Proceeds
  • June 14, 2010 | Author: Harry J. Friedman
  • Law Firm: Greenberg Traurig, LLP - Phoenix Office
  • Often overlooked by selling shareholders are the tax benefits that can be derived from the expenses incurred by the shareholders when selling the corporation. Generally, expenses incurred in connection with selling capital assets must be capitalized for federal income tax purposes, effectively reducing the capital gain reported by the seller. If the seller is a foreign person who does not pay any capital gains tax or is a tax-exempt entity, no tax benefit results from those expenditures.