Changing the Tide on C-Corporation Dealership Sales

Owners of dealerships organized as C corporations typically encounter some discouraging tax implications when they explore the possibility of selling. Various tax, legal, and financial implications drive the vast majority of dealership sale transactions into asset sale structures. Few buyers are going to consider a stock purchase without a considerable discount and perhaps even extensive due diligence and significant indemnifications. On the seller’s side, asset deals for C-corp dealerships trigger substantial tax bills that can eat up more than half of the sale proceeds. Fortunately, viable tax-cutting strategies are available for owners of dealerships organized as C-corps.