Because of the short week, we only have two articles in today’s M&A Weekly Digest, but they’re full of good information. First, we discuss how the Eurozone crisis could impact your selling a business.plans. Then, we follow that up with an analysis of how the forthcoming expiration of Bush Era tax cuts will negatively impact your bottom line if
How the Eurozone Crisis Could Impact Your Exit Plans
Carl Doerksen delves into the Eurozone crisis, explaining how the crisis could spread to the U.S. and what that means for business owners looking to sell their businesses in the next three years to five years.
How the Expiration of Bush Era Tax Cuts Affects You
“In December of 2010, Congress passed the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act. Essentially this act extended the Bush era tax cuts through the end of 2012. A significant number of taxes and rates were affected by this extension, the most important being the extension of the capital gains tax at 15 percent. This means that you have until Dec. 31, 2012, to sell your business and pay all or at least part of it in cap gains tax at 15 percent. So you have a very narrow window of time available to you at this point.
Unless Congress passes new legislation, on Jan. 1, 2013, the cap gains tax rate will increase to at least 20 percent. Some analysts are predicting that that the new rate will probably be even higher than 20 percent given our growing budget deficit and need for new revenues.”
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