Changes in the Capital Gains Tax Will Hurt Business Sellers
The new administration has made it pretty clear that taxes on the wealthy are going up. One particular area of focus, we believe, will be increasing the capital gains tax.
This article explores the impact on business sellers of this impending increase.
Thinking of selling your business? If you have planned it correctly, most of your transaction proceeds should be long term capital gains.
Given the current political climate and the upcoming change in the White House, capital gains taxes will come under attack.
If you are a business owner and are thinking of selling your business within the next 5 years, you may want to move up your exit timeframe says Dave Kauppi, President of MidMarket Capital, a Merger and Acquisition Advisor.
The reduced 15% tax rate on capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Reconciliation Act signed into law by President Bush on May 17, 2006.
In 2011 these reduced tax rates will revert to the rates in effect before 2003, which were generally 20%.
