Jesse Wideman Jr., CFP® at Zenith Wealth Partners, provided expert guidance in this Philadelphia Inquirer article exploring strategies business owners can use to defer or reduce taxes when selling their company. The piece examines structured installment sales, which spread capital gains tax liability over time through annuity payments, alongside donor-advised funds, which allow owners to take an immediate tax deduction while distributing charitable dollars over many years.
Jesse speaks specifically to the value of a donor-advised fund for owners navigating an unusually high-income year, noting, “A donor-advised fund gives you an immediate tax deduction, tax-free growth inside the account, and the flexibility to decide later which charities will ultimately receive the money.” He explains that many of his clients turn to this strategy in the year they sell a business, using it to capture the deduction during that high-tax year while spreading the actual giving out over time. Jesse also cautions that a donor-advised fund should only be pursued within the context of a client’s full financial plan, not as a standalone tax move made in isolation.
His insights offer business owners a grounded, practical framework for thinking through the tax implications of a sale, and underscore the importance of coordinating that decision with an accountant, attorney, and financial adviser working together.