If you’re considering selling your business in the next 3-5 years, sooner may be better than later.
At the last minute in 2010 the government decided extend capital gains and personal income tax rates another two years, giving business owners more time to enjoy low rates. Don’t let this gift go to waste
As it sits right now, in 2013 the capital gains and income tax rates will increase and the hike will have a drastic effect on your sale. A 5% increase in these taxes would increase taxes $100,000 on a $2 million sale. That doesn’t include any federal or state income taxes that will be increasing and taking an even larger portion of your proceeds.
In order to avoid getting hit with these extra taxes consider putting your business up for sale in late 2011 so you can close before the increases kick in.