If I sold my company for 1,200,000 dollars what amount of that would i pay in taxes?

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If I sold my company for 1,200,000 dollars what amount of that would i pay in taxes?

2006-12-12 10:25:24 · 3 answers · asked by mtnhorizonhope 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

jseah114 is correct. You would be taxed on your gain. That is, the difference between you basis and the sale price. You basis includes all funds you invested in the company less withdraws. It is also adjusted each year based on profit/loss. If you own a company worth $1,200,000, you should be asking a CPA and/or a tax attorney this question BEFORE the sale.

2006-12-12 12:28:50 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋

How much you would have to pay in taxes would be dependent on what your basis is in the business.

2006-12-12 19:09:06 · answer #2 · answered by jseah114 6 · 2⤊ 0⤋

Probably about 30 percent I would plan on and hope it's not that much.

2006-12-12 18:32:43 · answer #3 · answered by joshatgrace 2 · 0⤊ 1⤋