If you are considering selling a business or cash flow investment property in the new few years be aware of a new tax change that might affect you. A new tax will go into effect January 1, 2013, for individuals earning $200,000+ annually, or $250,000+ for couples. This is especially important for those using the funds to retire or send kids to college. If the gain from a sale of a business or investment added to your income exceeds these thresholds, you will pay an additional 3.8% tax on that income. It is difficult to earn that much in a CD these days! If you wish to avoid this additional tax, you have to close by Dec. 31, 2012. Be sure to consult your tax advisor.
