Tax Warrior Chronicles

Proposed Capital Gains Rate Increase Impact on the Sale of a Family Business

Posted on Fri, Aug 27, 2021

By: Sherri Sorbello, CPA


Among President Biden’s tax proposals is an increase in the long-term capital gain tax rate from 20% to the top ordinary tax rate (37% for 2021 or 39.6% for 2022) for taxpayers with adjusted gross income (AGI) over $1 million. At the time of the publication of this blog, it is unclear if this change, if enacted, will be retroactive to a yet-to-be determined date in 2021 or if it will take effect as of January 1, 2022. For those looking to sell a family business, planning for the potential higher tax rate is essential to ensure you net the greatest cash flow from the sale of a business.

Read More

Unprepared Heirs: Starting the Family Conversation About Wealth Transfer (Updated)

Posted on Thu, Nov 19, 2020

In these challenging and uncertain times, planning for generational wealth transfer is more important than ever.  We've updated this piece from 2018 to, again, help families discuss wealth among themselves and how it will successfully pass from one generation to the next. 


The reports differ from $30 trillion to perhaps only $9 trillion, but nearly all experts agree the greatest wealth transfer in history will happen in the next 25 years with a significant transfer of wealth happening in the next 10. Is your family prepared?

Read More

Your Kids in the Family Business Post-Trump Tax Reform

Posted on Mon, Aug 12, 2019

By: Melissa Boyce, CPA


The Tax Cuts and Jobs Act of 2017 (TCJA) changed many areas of the tax code, including when family business hires their child(ren). While there was a similar pre-TCJA benefit to hiring one’s child(ren), the new law increased several tax savings and warrants another look at hiring children into the family business.

Read More

Keep Your Eye on the Exit

Posted on Thu, Oct 11, 2018

By: Michael W. Donahue, CPA, CFP, MT


In the past few years, we have assisted family business clients in a time of strong economic growth. This growth continues across many industries. In meeting with these clients, we’ve noticed an increase in the owners’ interest in “cashing in” on their businesses’ value. Getting to the best possible sale price is the focus of today’s blog.

Read More

IRS Formally Withdraws Proposed Estate Transfer Regs

Posted on Fri, Nov 03, 2017

By: Karolyn Banks, CPA, MT


The IRS recently withdrew controversial proposed regulations under Internal Revenue Code (IRC) section 2704 that would have placed restrictions on the ability to use discounts for lack of marketability and control.  The Tax Warrior perspective of the originally proposed regulations was that family business planning would be more challenging. Here’s why we believe family businesses dodged the proverbial bullet.

Read More