Selling Your Idaho Business? Time is Running Out

There’s only so much time leftin 2012, and yet so much to do. Hopefully Congress will get to work and hammerout a deal to avoid the “fiscal cliff” (and trigger another recession).

Regardless, it certainly lookslike 2013 still won’t be quite as advantageous as the current tax code. Thisespecially is the case if you’re looking to make a major sale that will invokecapital gains taxation. Accordingly, you’d better get to work and get that salecompleted before the ball drops in Times Square!

For business owners consideringthe sale of their businesses, this advice includes you. In fact, you will beinterested in a recent article in TheWall Street Journal titled “Looming Tax Hike Motivates Owners to Sell.”

As you likely know, the firsttsunami to hit will be the automatic relapse in the tax code to pre-Bush eradays, with an effective increase in capital gains taxation from a current 15%to a less advantageous 20%. And it gets worse: the Affordable Care Act(Obamacare) tacks on an extra 3.8% to capital gains that also goes into effectnext year. Bottom line: capital gains will increase to 23.8% (that’s anincrease of almost 60%!).

It’s yet to be seen what thelame-duck Congress will do with their time or how they’ll solve this problem.But it seems unlikely that Obamacare and that extra 3.8 % surcharge is goinganywhere. That alone is enough to encourage some business owners to advancetheir sale dates to 2012.

It might already be too late tosell your business. Nevertheless, there may be time yet or other transfersbesides. Looking for an example? Well it’s worth noting that George Lucasdidn’t wait until January to sell his company, Lucasfilm, to Disney, potentially shaving $176 millionoff his would-be tax bill.

At Idaho Estate Planning we are theexperts you need to know and trust. Work with us and we'll put together a planthat works for you and your loved ones. Remember, good planning is no accident.


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