BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Wednesday, April 19, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This webinar will cover key considerations of buy-sell agreements for closely held businesses. Our panel of estate and wealth transfer experts will discuss the tax implications of redemption and cross-purchase agreements for tax professionals working with small businesses and their owners.

Faculty

S. Gray Edmondson
Partner
Edmondson Sage Allen, PLLC

Mr. Edmondson practices in partnership, corporate, and individual tax planning; business transactions including mergers and acquisitions; business planning; tax controversy; estate and wealth transfer planning; probate; estate and trust litigation; asset protection; and charitable planning. He has conducted, authored, and directed numerous seminars for professional, academic, and civic groups on taxation, business, asset protection and estate planning. Mr. Edmondson works closely with clients to develop and implement such strategies.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Joshua E. Husbands
Partner
Holland & Knight LLP

Mr. Husbands is a partner in Holland & Knight’s Portland office and a member of the firm's Private Wealth Services Group. He often serves as outside general counsel for private companies and their owners, representing clients in an array of business, tax, philanthropy, business succession and estate planning matters, including business reorganizations, acquisitions and divestitures. Mr. Husbands frequently writes and speaks on business, tax, life insurance and asset protection matters concerning businesses and high-net-worth individuals.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Buy-sell agreements are a critical planning tool for closely held businesses. They can ensure a business remains in the hands of family or current owners and provide liquidity to transfer ownership and pay estate taxes. There are two types of agreements. A redemption agreement is between the owner and the business while a cross-purchase agreement is between individual owners. A buy-sell agreement is triggered by death, divorce, disability, or other threats to a business' continuity.

Often funded with life insurance, the tax ramifications of buy-sell agreements are complex and vary based on the type of agreement. Whether a basis step-up is received at transfer depends on whether the shares are acquired by the business or the individual owners. The valuation method selected can significantly impact the taxation of the deceased owner's estate. Properly planning for a streamlined transfer of a business interest can mitigate both taxes and future complications.

Listen as our panel of estate planning experts identifies clients who are candidates for these agreements, primary differences in redemption and cross-purchase agreements, and liquidity and valuation considerations for trust and estate advisers working with closely held businesses.

Outline

  1. Types of buy-sell agreements
  2. Triggering events
  3. Valuation
  4. Funding
  5. S corporation issues
  6. Tax considerations

Benefits

The panel will review these and other critical issues:

  • Understanding the tax implications of redemption agreements
  • Using life insurance to fund buy-sell agreements
  • Tax implications of valuation methods used in buy-sell agreements
  • Obtaining a basis step-up when an interest is transferred

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify types of buy-sell agreements
  • Determine how buy-sell agreements are used to transfer ownership
  • Decide what events trigger buy-sell agreements
  • Ascertain valuation methods that are used in buy-sell agreements

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).