If you’re looking for a sign to sell your business, this is it.
While the newly released tax plan increases capital gains tax by less than expected, business owners who are looking to sell remain encouraged to do so now—but why? Rocky Mountain Business Advisors explains the ideals of the situation and why owners should act fast to get their business on the market.
Capital Gains Tax Increase Less Than Expected—But Could Change
Speculation surrounding the current administration’s impending tax plan suggested that capital gains tax would drastically increase, affecting businesses and the sale of businesses. Only five percent higher than the previous rate, the recently released tax plan sets capital gains tax at 25%, securing business owners a higher return on the sale of a business. While this rate is favorable over the previously estimated 40%, market experts warn that the slight increase is only temporary and is likely to further increase as soon as next year to provide additional funding for a number of Democrat-supported programs.
Business Owners: Sell Now
If you’re a business owner who’s at all considered selling, now is the time. Though the timeline for an additional capital gains tax increase isn’t finalized, experts advise business owners to not delay the selling process, as having ample time is significant to a sale.
To secure the higher return that lower capital gains tax supports, Rocky Mountain Business Advisors encourage sellers to immediately value the business and list it for sale—and we’re here to help! Our priority will always be our clients and ensuring a successful, profitable sale. If you’re a business owner in the Colorado, Wyoming, or New Mexico area, reach out to our team today and discover how our advisors can help you take advantage of the current capital gains tax.