Tax Hikes Are Coming. Time to Sell Your Business? | Inc.com

"First, the tax facts. We know only one thing: Taxes will increase next year.

We don’t know what bipartisan compromise may be worked out in the coming months. But in the absence of a compromise, the Bush tax cuts will expire on New Year’s Eve, and here’s what will happen to them (based on top marginal rates):

Federal Income Tax will go from 35% to 39.6%
Federal Capital Gains Tax will go from 15% to 23.8%*
Estate Tax Exemption will change from $5.1 million to $1 million
(* including the 3.8% surcharge for Affordable Health Care)

So, if you sold a business with a $1 million capital gain, you would keep $850,000 of that gain if you sold it on December 31, and only $762,000 if you sold it the next day. One day would cost you $88,000."

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.