Tax Cut Package Opens Small Window For Business Sellers

CHICAGO (By Deborah L. Cohen) – A few weeks ago Ed Knox was scrambling to close the sale of a $2.2 million promotions business before the end of the year, concerned a new federal tax package would push capital gains rates higher and potenti…

CHICAGO (By Deborah L. Cohen) – A few weeks ago Ed Knox was scrambling to close the sale of a $2.2 million promotions business before the end of the year, concerned a new federal tax package would push capital gains rates higher and potentially thwart the deal.

“The seller was very worried he was going to lose $110,000,” said Knox, whose White Plains, New York-based Yarmouth Venture Group serves as an advisor to buyers of companies with less than $10 million in annual sales. “Now he’s not going to have to sell on December 31st because of the Obama tax changes.”

Much of the discomfort over the impact of selling or transferring a small company in the near term has been eased by the compromise federal tax package recently passed by Congress.

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