What the 2013 Tax ChangesMean for Business Owners       Presentation by       Schwartz Heslin Group, Inc. (SHG)
The Bush Tax CutsThe Bush-era tax cuts are due to expire at the end of2012 – barring any intervening legislation in the in...
Summary of the Changes (1)Income Type                    2012              2013         Percent                           ...
Summary of the Changes (2)Estate Tax             2012    2013    Percent                                       ChangeMaxim...
Effective Capital Gains TaxWith the capital gains tax rate rising to 20% andthe introduction of a 3.8% Medicare tax onunea...
Key PointThe increase in the maximum capital gainstax rate will reverse nearly 2 decades ofdeclining capital gains taxes  ...
Additional Liability Based on the projected 2013 tax rates:    The after-tax value of the sale of a business worth    $25M...
After Tax Deal Value: 2012 vs 2013                              90                                               85Sales V...
Conclusion…If a sale is consistent with your personal long-term financial goals,         The selling environment isdecided...
Conclusion…First step:      Have a professional assess the value ofyour enterprise               See for yourself just h...
Conclusion…Keep in mind,     after January 1, 2013,        the selling environmentis          unlikely to improvefor the  ...
Presented by:         Schwartz Heslin GroupAddress:                     Or visit us on:   8 Airport Park Bvld.   Latham, N...
Upcoming SlideShare
Loading in …5
×

Taxes and Business Owners

259
-1

Published on

An overview of the major aspects of the expiration of the Bush tax cuts and how they impact business owners and investors.

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
259
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Taxes and Business Owners

  1. 1. What the 2013 Tax ChangesMean for Business Owners Presentation by Schwartz Heslin Group, Inc. (SHG)
  2. 2. The Bush Tax CutsThe Bush-era tax cuts are due to expire at the end of2012 – barring any intervening legislation in the interim.But the impasse between Congressional Republicansand Democrats over the extension of all of the tax cutswill almost certainly result in… …The Expiration of the Bush Tax Cuts
  3. 3. Summary of the Changes (1)Income Type 2012 2013 Percent IncreaseOrdinary Income 35% 39.6% 13.1%Capital Gains 15% 20% 33.3%Qualified Dividends 15% 39.6% 164%*New Medicare Tax on 0% 3.8% NAUnearned IncomeNotes:*The added Medicare Tax on Unearned Income is not a component of the Bush-eratax cuts.**Tax rates are all maximum posted rate.
  4. 4. Summary of the Changes (2)Estate Tax 2012 2013 Percent ChangeMaximum Rate 35% 55% 57.1%Exemption (thousands 5,000 1,000 -80%USD)Gift Tax 2012 2013 Percent ChangeMaximum Rate 35% 55% 57.1%Exemption (thousands 5,000 1,000 -80%USD)
  5. 5. Effective Capital Gains TaxWith the capital gains tax rate rising to 20% andthe introduction of a 3.8% Medicare tax onunearned income, The effective maximum tax rate on the sale of a business will rise to 23.8%
  6. 6. Key PointThe increase in the maximum capital gainstax rate will reverse nearly 2 decades ofdeclining capital gains taxes  And reduce the after-tax sale value of a business
  7. 7. Additional Liability Based on the projected 2013 tax rates: The after-tax value of the sale of a business worth $25M: only $19.05M The after-tax value of a $5M gift: only $2.25MNote: Calculations assume zero base.
  8. 8. After Tax Deal Value: 2012 vs 2013 90 85Sales Value After Tax (Millions 80 76.2 70 60 50 USD) 42.5 40 38.1 30 21.25 19.05 20 10 0 25 50 100 Pre-Tax Deal Value (Million USD)Note: Calculations assume zero base.
  9. 9. Conclusion…If a sale is consistent with your personal long-term financial goals, The selling environment isdecidedly more favorable inadvance of these changes
  10. 10. Conclusion…First step:  Have a professional assess the value ofyour enterprise  See for yourself just how large a difference selling in 2012 couldmake
  11. 11. Conclusion…Keep in mind, after January 1, 2013, the selling environmentis unlikely to improvefor the foreseeablefuture.
  12. 12. Presented by: Schwartz Heslin GroupAddress: Or visit us on: 8 Airport Park Bvld. Latham, NY 12110Phone: 518-586-7733 Web: www.shggroup.com
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×