Our office remains open to serve your important legal needs during these turbulent and challenging times. We are happy to schedule client consultations and client meetings by telephone or video-conference at your request.
Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Calculating capital gains when selling a company

On Behalf of | Nov 21, 2019 | Blog

When business assets are sold in Colorado or any other state, the seller may have to pay capital gains taxes on any profits realized. Capital gains can be categorized as short-term or long-term gains depending on how long an asset was held. Short-term gains are generally taxed at an individual’s ordinary income tax rate while long-term gains were taxed at 17% as of 2018.

There are several different types of capital assets a company could have. Examples include land, buildings or a company car. Inventory that is sold to customers may also be considered a capital asset as well as intellectual property that a business owns. A business may also have stocks, bonds or other investments that gain value over a period of months, years or decades. It is vital to note that capital assets can depreciate in value, and a company may be able to reduce its tax burden when a loss occurs.

If a financial gain or loss is never realized, it will likely be treated as ordinary income as opposed to a capital gain or loss. The IRS requires that capital gains or losses be calculated for each capital asset a company has even if they are sold together as a package. If a partnership is sold, each partner’s stake in the company is considered to be a capital asset.

The sale of a business may trigger a variety of taxable events that buyers and sellers alike should be aware of. It might be in a seller’s best interest to consult with an attorney and other professionals before closing on the sale or transferring company assets. An attorney could able to review a proposed deal to help ensure that it is structured in a favorable manner.

Column Image

“I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed.”
– L.H.

“Everyone at the firm was professional, responsive and courteous. I would definitely recommend this firm if you are in need of superior legal assistance.”
– J.S.

“Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication.”
– N.S.

“The team was very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help.”
– D.L.

“Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business.”
– T.Z.

Column Image


Bg Subscribe
Contact Our Firm

Office Location

Bryan E. Kuhn, Counselor at Law, P.C.
1660 Lincoln Street Suite 2330
Denver, CO 80264

Local: 303-424-4286
Toll Free: 866-693-5541
Fax: 303-425-4013
Denver Law Office Map
FindLaw Network
Click for the BBB Business Review of this Attorneys & Lawyers - Employment Litigation in Denver CO