Timing is important

Tax (Photo credit: 401(K) 2012)

Ownership transitions are never easy and the timing of the transition takes careful thought.  That being said, 2012 is creating a bit of a forced environment for ownership transitions.

There are two tax items (one noted in Steve Sink's post yesterday) that are driving this situation:

• It appears that capital gains will increase in 2013
• The $5 million gift tax exemption will change to $1 million in 2013

Taking these two tax items into consideration, an ESOP transaction in 2012 may be something to pursue. Starting the process right away is important if an ESOP transaction is to be completed this year.

Keep more of your money today and in the future - have an ESOP discussion today.