Peck: M&A asset purchases impose 50% capital gains cost on sellers
Valerie Peck · Acquired! Why She Sold her Bootstrapped $800k ARR Company for $3m · Apr 5, 2023 · at 7:17
SweetCX founder Valerie Peck explains the tax conflict between buyers seeking asset depreciation and sellers seeking Section 1202 QSBS tax exemption.
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“Unfortunately, buyers are set up so that they want to do an asset purchase, and an asset purchase then results in a 50% capital gains cost for the sellers. So, interestingly enough, our tax code is not designed to be particularly conducive to M&A.”
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