Email Contact Us

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please Type Topic Into Search Bar

Should I sell my small business prior to the end of December 31, 2012? What are the tax benefits of selling a 5M company by years end versus after January 1, 2013?

sale of closely held corporation
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
David Neidhart
Simply, the capial gains tax is set to increase from 15% as of Dec 31, 2012 to about 20-25% in the next year. This will occurr if Congress does nothing and the Bush tax cuts expire. Popular belief however, is they will come up with a deal and extend at least some of the cuts for 1-2 years. By selling in 2012, ypou are locking in the capital gains rate of 15%. By waiting, you are gambling that the tax does not go up. There are other options on how to structure the sale that can result in postponing the tax due such as Sec 1031. These would need to be planned ahead of the sale and will need an intermediary to take possession of the sales proceeds in the interim between sales of your company and receipt of the stock of another. Hope this helps
Leave a Comment 480 weeks ago


View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

Contact Us Today