Selling in 2011? Expect higher taxes

By Chris Rowe

This article contains general information and is not intended to be a specific analysis of the tax issues that could affect an individual’s specific circumstances.

In 2011, changes in capital gains and ordinary income tax rates will significantly affect the proceeds from the sale of a business.

In 2011, changes in capital gains and ordinary income tax rates will significantly affect the proceeds from the sale of a business. The Bush tax cuts are to sunset in 2011 and the recently passed healthcare law will also implement new taxes in coming years. Business owners that are considering selling in the next two to three years may want to consider selling in 2010 in order to maximize their after-tax proceeds. Leonard Tannenbaum of Fifth Street Capital was quoted on May 6, 2010 at a large private equity conference, “You may see the biggest fourth quarter [of dealmaking] in history; there is going to be a massive tax hike coming.”

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