Structured settlements are commonly associated with the payment of personal injury damages because of their advantageous tax-free treatment, but some business purchases and buyouts can also benefit from structured settlements using annuity payments from an insurance company. A structured settlement is an agreement made to settle a monetary claim or lawsuit. It provides for a series…
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Covenants Not to Compete and Personal Goodwill
A covenant not to compete on the part of the seller is similar to title insurance to the buyer of the business. It prevents the seller from competing in the same industry for a specified time period and within a specified geographic range. In this sense, it protects the buyer from the loss of value tied to…
New Law Includes Favorable Changes for Individuals
The massive COVID-19 relief bill signed by President Trump on December 27, 2020, contains a variety of tax breaks and authorizes direct payments to eligible individuals (see right-hand box). The law is titled the Consolidated Appropriations Act of 2021 (CAA) but two sections of it are called the COVID-Related Tax Relief Act (COVIDTRA) and the Taxpayer…