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Home > Recent Industry News > Reuters: Specter of higher US taxes may not spur family-business deals
Recent Industry News

Date: 2012-07-26
Reuters: Specter of higher US taxes may not spur family-business deals

July 26 2012                                
(Taken from Reuters, www.reuters.com)
http://www.reuters.com/article/2012/07/26/privatecompanies-ma-idUSL2E8HS68420120726
 
July 26 (Reuters) - Private bankers say the prospect of expiring U.S. tax cuts makes 2012 an opportune time for wealthy families to sell their businesses. But a host of obstacles will likely prevent a flood of deals.
Wealth managers to the rich are telling clients who are considering selling a family business, they'd better act fast. Capital gains taxes will rise to as high as 25 percent from 15 percent if Congress does not extend cuts set to expire Dec. 31. The cuts were enacted under President George W. Bush in 2001.
Some people earning more than $200,000 a year also face a 3.8 percent Medicare surcharge on investment income.
As a further incentive to sell, companies and private-equity buyers have piles of cash and financing for deals is widely available, investment bankers say, driving valuations for some sectors to their highest since 2008.
 
FOR COMPLETE ARTICLE:
http://www.reuters.com/article/2012/07/26/privatecompanies-ma-idUSL2E8HS68420120726

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