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Looming Tax Hike Motivates Owners to Sell

Posted By admin On November 2, 2012 @ 6:16 am In Money Watch | Comments Disabled

JOHN D. MCKINNON
Wall Street Journal [1]
Nov 2, 2012

A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses.

Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.

“It just made more sense for me to take my chips off the table and go do something else,” said Bert Wolf, 60 years old, who has an agreement to sell his compressed-gas business, Acetylene Oxygen Co. of Harlingen, Tex., before year-end.

Mr. Wolf added that if he waited until after the tax increase to sell, he would have to expand the business at the current rate “for at least 3 or 4 more years to achieve the same after-tax sales dollar.” He is profiting on the sale of his business to Praxair Inc., PX +2.15% a public company.

Full article here [1]


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URLs in this post:

[1] Wall Street Journal: http://online.wsj.com/article/SB10001424052970204789304578088931525397120.html

[2] Citizens Of Illinois Get Slapped With Staggering 33% Income Tax Hike To Fill Deficit: http://www.prisonplanet.com/citizens-of-illinois-get-slapped-with-staggering-33-income-tax-hike-to-fill-deficit.html

[3] Russia to sell 20-50 T gold in 2009 – source: http://www.prisonplanet.com/russia-to-sell-20-50-t-gold-in-2009-source.html

[4] International Monetary Fund to sell over 403 tons of gold: http://www.prisonplanet.com/international-monetary-fund-to-sell-over-403-tons-of-gold.html

[5] Biden Pushes “Patriotic” Tax Hike on the Rich: http://www.prisonplanet.com/biden-pushes-patriotic-tax-hike-on-the-rich.html

[6] Town hall threat to seize empty homes: campaign to force owners to sell or rent out: http://www.prisonplanet.com/town-hall-threat-to-seize-empty-homes-campaign-to-force-owners-to-sell-or-rent-out.html

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