Should You Sell Your Business Now?

If you have owned a business for a long period of time and were considering selling, 2012 may be year for you find a buyer to take over your shop.   The Presidential election and many open tax patches/increases loom on the horizon in 2013 which could alter tax rates substantially.   2012 could actually prove to be a much more a favorable year to play let’s make a deal for your business.  Here are four reasons to consider selling your business now. 1.) Historically low capital gain rates –   Currently, we have long term capital gain rate of 15% on most items.    It has been very uncertain where this rate will head in 2012, but 20% at a minimum has been the number thrown about over the past year.    If that occurs in 2013, it will represent a 33.33% increase in your capital gains tax.   The Government will spin it as if it is only a 5% increase, but in really ...

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Rental Income: Here Is The Bad News

Attention owners of rental homes and properties . . . You aren’t going to like one of the tax changes that appears to be on the horizon for 2011 as part of the revenue offset of the recent Small Business Jobs and Credit Act of 2010. The legislation would require an IRS Form 1099 for rental property expense payments.  The provision would subject all recipients of rental income from real estate to the 1099 reporting requirement, with the exception for taxpayers that rent their principal residence on a temporary basis, receive minimal amount of rental income, or would experience a hardship under this provision.  This provision would give the Department of Treasury the authority to determine what constitutes a “minimal amount” of rental income and what constitutes a “hardship.”  According to JCT, this provision would increase revenue by $2.546 billion over 10 years.  (source:  www.gop.gov/bill/111/2/hr5297senateamendment) In simple terms, the bill makes recipients of rental income fall underneath the same information ...

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