November 7, 2012
More on Disney Purchase of Lucasfilm
As I previously discussed, Lucas may have sold Lucasfilm to Disney to take advantage of the favorable capital gains tax rate. Even if this was not his intention, he will still reap the benefits of the more favorable tax rate. According to Forbes, "[t]he 15% capital gain rate ends December 31, 2012, soaring to 23.8 % in 2013." For many business owners, this may very well be the time that they seek to sell their businesses. If a business owner wanted to sell their business at the moment, they could potentially save a great deal of money.
There are different tax principles that apply based upon the type of business entity that a business owner operates. If a business is a proprietorship, partnership, or LLC, then the business owner will only face a single level of tax. Whereas, if the business owner has an C corporation, then the rules are different. A C corporation can be taxed on two levels. C corporations are "taxed at up to 35%. Corporate distributions are then subject to a second tax to shareholders."
See Robert W. Wood, Like a Jedi, Sell A Business, Real Estate or Stock This Year, Forbes, Nov. 6, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
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