The dilemma that faces every business owner is how to maximize the value of their business. Optimally, a business owner would like to be able to sell and/or retire comfortably. For a lucky few, the after-tax return is more than they can spend or give away. For everyone else, advanced tax and business strategies are necessary to maximize their after-tax returns from the sale of their businesses.
Tax strategy is significant because taxes are the single largest cost of operating a business. By avoiding unnecessary taxes on the sale or transfer of the business, the owner and his/her family keeps more of the wealth that has been generated.
There are three major ways tax laws can enhance after-tax returns from the sale of a business:
CMAES (Continuous Multi-Asset Exchanges) accomplishes each of these tax strategies. All gains from sales are sheltered from taxes; the sheltered gains can be reinvested tax free. When sold later, these gains are taxed at lower tax rates by elimination of the recapture.