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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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Personal Finance 101 – The Tax Management Triangle

Don’t you wish that you had a crystal ball to know what the tax rates will be 20 years from now?   In 1970, the top tax marginal tax rate was at 70%.   In 1980, the top marginal tax rate was still at 70%.   In 1990, the top marginal tax rate hit a historical low of 28%.   In 2000, that top marginal tax rate had moved back up to 39.6%.   Just one year ago in 2010, the top marginal tax rate settled at 35%. (source: taxfoundation.org)  With all the uncertainty going on with our debt and taxes, how can you best plan your finances for the certainty of uncertainty when it comes to income taxes? Over the years, we’ve adopted a tax triangle methodology around taxes and investing.  This allows an individual investor or business owner to think about where they place their investments and tax strategy upon the accumulation and distribution phase.  Here are the three sides to the triangle. ...

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