How do I avoid capital gains tax on selling my business?

There’s no way to fully avoid capital gains tax legally, but common strategies to reduce or defer it include:

  1. Installment sale, spreading payments (and tax) over several years.
  2. Qualified Small Business Stock (Section 1202) exclusion, if eligible.
  3. Rolling gains into an Opportunity Zone fund.
  4. Structuring the sale as a stock sale with favorable timing.
  5. Charitable remainder trusts, donating a portion pre-sale.
  6. Offsetting gains with capital losses (tax-loss harvesting).
  7. Retirement plan contributions before the sale year.

Rules are complex and change often. Consult a CPA or tax attorney before deciding, since I’m not a financial or legal advisor.