If Seller escrows price, does he/she have to pay tax today?
A seller wants to sell the business to a 1 or more licensed long-term W2 employees. Assume 0% equity. SBA financing. PG from employees. To make employees (and spouse) comfortable with PG, Seller is willing to escrow all the proceeds as a security to the bank provided the seller does not have to pay tax till the funds are released from the escrow to the seller. Is it possible to structure a deal to defer taxes? For example, what if the lender puts the money directly in escrow?