Capital gains tax increases can have a significant impact on the net income received from the sale of a business. If you are thinking of an exit and want to do so on your terms, now is the time to move forward.
The price is almost doubled.
Today, the capital gains rate is 20%. If the current proposal to raise the tax rate to 39.6% is passed, you will pay about twice as much tax when you sell your business. While this pending law is actively considering selling businesses in 2021, many business owners are waiting to consider an approach. Keep in mind that creating a sound exit plan can take some time. If you’re looking for a sign to sell from the market, this is it!
Make the most of what you bring back from your business sale by reducing taxes!
Bringing an expert before your sales transaction will help you position your business in the light of the most tax-friendly and maximize your net income from your sales. Remember that professionals who understand your goals and years of effort have the experience to save you a considerable amount of money and empower you to make the most strategic decisions throughout the process. Call today and take the first step to maximize the value of your transactions.
Emery Ellinger is the founder of Aberdeen Advisors, a local M & A company. He holds a bachelor’s degree in economics from Washington and Lee University and has advised and linked hundreds of business sellers and qualified buyers. Emery is the author of the best-selling book “Turn Your Blood, Sweat & Tears Into Cash”, frequently speaks on all topics related to business sales, and is an expert panelist.
Sell your business before taxes go up! | Business Observer
Source link Sell your business before taxes go up! | Business Observer