2013 Capital Gains Tax Increases

If you are already contemplating an exit strategy or the timing is appropriate to consider it, please be aware of the following changes in tax law effective January 1, 2013.

·       Expiration of Bush tax cuts; Capital gains tax rate increases from 15.0% to 20.0%

·       Implementation of 3.8% Health Reform Tax on “certain income” (includes capital gains)

·       Seller will pay 23.8% in total taxes in 2013 versus 15.0% in 2012

     Exemplary Transaction: Tax on $10MM in capital gains

                                        2012: $1.5 MM

                                       2013: $2.38 MM

At some point, almost all businesses owners consider the sale of their company. The reasons vary; retirement, the creation of liquidity or the pursuit of other interests.  Walden’s role is simply to assist the business owner in defining and executing a meaningful exit strategy that is supportive of their own personal and financial goals.

Walden Businesses, Inc.

8395 Dunwoody Place, Building 5

Atlanta, GA  30350

Office: (678) 277-9951

Fax: (678) 277-9346

E-mail: walden@waldenbus.com

www.waldenbus.com