With a new administration in the Oval Office, business owners considering to sell their business in the near future should take into account the impact of President Biden’s proposed capital gains tax increases before taking any next steps.

The long-term capital gains tax held its position at 20% since the early 1980s. However, it was recently retained in 2017 by the Tax Cuts and Jobs Act (TCJA) for income over $434,550. Accompanying the preferential tax rate on long-term capital gains in the TCJA was a decreased income tax rate of 37% for the country’s highest-earners above $518,700. These incentives have been appealing motivators in recent years for business owners to sell as a result of higher net after tax proceeds.

Before you decide to sell your business, read Doeren Mayhew Capital Advisors‘ latest article for more information about these potential tax increases, the impact on future deals and how to plan ahead.

Securities offered through Doeren Mayhew Capital Advisors, LLC. Member FINRA/SIPC. Doeren Mayhew is an independent firm affiliated with Moore Global Network Limited.