So what advice is there for clients who won’t be ready to sell for a year or two? “We’ve recommended charitable solutions such as charitable remainders trusts and charitable lead trusts,” FitzPatrick said. “An installment sale is another possibility. If the buyer’s open to it, the sale can run over multiple years to help spread the realization of gain.”
Even though the clock is ticking this year, “owners are generally more concerned about the terms of the sale itself rather than the changes in tax implications,” FitzPatrick said. “Clients view finding the right buyer and obtaining the most favorable terms as more important than the current political backdrop, especially when the legislation hasn’t yet been finalized.”
Still, Creighton added, “depending on the size of the business, the window is rapidly closing to get a deal done in 2021.”