About the Course
Introduction
This webinar will explore taxing and structuring earnout agreements. Our knowledgeable panel of exit planning professionals will review types of earnouts, the tax implications of these arrangements from the buyer's and seller's perspectives, and case studies of typical earnout agreements.
Description
Earnouts facilitate business sales and mergers by bridging perceived differences in the value of the target business. The seller often must earn the remainder of the price by meeting specified financial thresholds based on EBITDA, gross margins, or other criteria.
A chief concern of earnouts is their tax implications. Earnout agreements can include compensation arrangements or the payouts may be considered part of the original purchase price. A seller might want these payments included in the purchase price and taxed at capital gains rates, while the buyer prefers compensation treatment and a subsequent tax deduction. Structuring earnouts appropriately to minimize taxation is critical. Tax practitioners working with businesses must master the tax implications of earnout contracts.
Listen as our panel of merger and acquisition experts delves into the tax treatment of earnout arrangements for business owners and their advisers.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Friday, November 15, 2024
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Introduction to earnouts
- Types of earnouts
- Earnout agreements
- Tax considerations
- Case studies
The panel will cover these and other critical issues:
- Types of earnout arrangements
- The purpose and benefits of earnouts in business transactions
- Common performance metrics and targets
- Structuring earnouts to minimize tax liabilities
Learning Objectives
After completing this course, you will be able to:
- Identify ways to minimize tax liabilities when structuring earnouts
- Determine how compensation-based earnouts are taxed
- Decide when an earnout agreement could facilitate a sale
- Ascertain different types of performance indicators incorporated in earnout arrangements
- 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 pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.
BARBRI, 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.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
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