A Business And Personal Fiscal Cliff
By Bob Goldberg, RSPA Attorney, Schoenberg, Finkel, Newman & Rosenberg, LLC.
On January 3, 2013, President Obama signed into law H.R. 8, the “American Taxpayer Relief Act of 2012.” Although the Act may have prevented the government from falling over a fiscal cliff it has clear implications and consequences to you and your business. The Act does make permanent some of the 2001 and 2003 tax cuts enacted during President George W. Bush’s administration and temporarily extends other tax incentives from 2009, but its effects and those of other legislation will impact your finances immediately. The legislation will bring higher taxes on all aspects of individual income, including wages, capital gains, estates and lifetime gifts. At the conclusion of 2012 there were an
At the conclusion of 2012 there were an abundance of business sales. Resellers sitting on the sidelines trying to determine if the time was right to sell were helped in their decision by the prospect of increased taxes on capital gains. As has been discussed previously it is not always the price paid for your business, but the amount you receive after taxes that counts. Capital gains taxes were increased, but the increase does not apply to everyone. The tax rate for long-term capital gains and qualified dividends was increased to 20% for individuals with income over $400,000.
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