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Pay Estate Taxes Without Liquidating Your Dealership

In the case of a closely held business interest, an IRS Ruling shows how some family’s can spread their estate tax bill over 14 years and the first installment can be delayed for up to 5 years after the estate-tax return is due.

As of now, for estate tax purposes, a closely held business interest includes more than a 20% interest in a partnership or corporation, or a sole proprietorship - and the decedent must have been “active” in the business. The new ruling defines what a “passive” investment is.

Not every estate qualifies and you should talk to your CPA, or tax attorney. Essentially, the value of the decedent’s business interest must make up more than 35% of the business owner’s estate. Your CPA, or tax attorney can help you develop an estate plan that meets the requirements.

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Pay Estate Taxes Without Liquidating Your Dealership

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