Are You Prepared for Possible Tax Law Changes Next Year?
By Ira Bergman, President, The Gordon Co.
Pompano Beach, FL—I’m not a tax expert, but I stay up on legislative issues like you probably do.
From the financial people I have been talking to, I hear there is a high likelihood that Congress may pass new tax laws that could affect many business owners in our industry.
Many of us have spent a lifetime working hard to build our businesses, create some degree of wealth, and provide for ourselves and our heirs in a way we see fit. So we need to be aware of how to protect our assets, enjoy a well-deserved retirement or semi-retirement, and make the last couple decades of our lives the very best.
In his new book Family Business Succession Planning, author Bill Boyajian discusses various forms of business transition: to a son or daughter or other family member, to a long-time seasoned employee, to an outside party who buys you out, or even through a retirement or going-out-of-business sale. In each of these instances, you may wish to conduct a business valuation, which can be helpful not only in knowing what your business is worth, but in considering various forms of gifting or buyout to minimize your tax liability.
If you are currently in a transition situation, or will soon be in one, it is vital that you consider the possible tax consequences right now. No one has a crystal ball on decisions that may come about next year regarding corporate taxes, personal income taxes, the often talked about “wealth” tax, or changes to limits on the transfer of monies to heirs.
I urge jewelers in every facet of our trade to seek the advice of tax professionals to see how any possible changes may impact your business and/or retirement planning.
My advice is to be assertive and get the help you may need through your CPA or tax attorney. There is a sense of urgency to this so it will be wise for you to understand the possible tax ramifications that may come about and act sooner rather than later to plan for them accordingly.
Part II Article Here: Legislative Update: Tax Implications Of The Infrastructure And Jobs Act
