A capital gains tax increase could massively impact the net proceeds you receive from the sale of your business. If you are contemplating an exit and want to do so on your terms, now is the time to move forward.
Rates to nearly double.
Today, capital gains rates are at 20%. If the current proposal to increase the rates to 39.6% is passed, you will pay approximately DOUBLE the taxes when you sell your business. This pending legislation has many business owners actively looking to sell their businesses in 2021 versus taking a wait and see approach. Keep in mind, a sound exit plan takes time to develop, so if you were looking for a sign from the market to sell, this is it!
Maximize what you take home from a business sale by reducing your taxes!
Bringing in a professional prior to your sales transaction will help you position your business in the most tax-advantageous light and maximize the net proceeds from your sale. Remember, an expert who understands your goals and your years of hard work has the experience to save you a significant amount of money and empower you to make the most strategic decisions throughout the process. Take the first step to maximizing your transaction value by calling today.
Emery Ellinger is the founder of local mergers and acquisitions firm Aberdeen Advisors. He holds a BA in Economics from Washington and Lee University and has advised and connected hundreds of business sellers with qualified buyers. Emery is the author of the bestselling book “Turn Your Blood, Sweat & Tears Into Cash” and is a frequent speaker and expert panelist on all topics related to selling businesses.