Case Study: Company Founder and His Business Partner achieve $100 million gain exclusion with MGO

Company Founder and His Business Partner unlock $100 million gain exclusion with MGO

The company founder and his business partner faced a complex tax challenge regarding a recent recapitalization transaction. A tax attorney had advised them they were eligible for a $5.8 million gain exclusion under Section 1202, but they sought a second opinion from vendor MGO to verify this assessment and ensure they were maximizing their potential savings.

MGO conducted a deep-dive analysis to confirm the company's status as a qualified small business and the eligibility of the shares. The vendor identified that the client was eligible for a significantly larger, $100 million gain exclusion, resulting in $0 capital gains tax on the current transactions. Furthermore, MGO preserved an additional $26 million in future tax exclusion potential for the clients.