I am trying to figure out the capital gains taxes when you start a business (E.g. a dot com or any small business). Assume that you put your sweat into the business etc... and got other investors to invest in the company. If I sold my company for $100m 2 yrs later and my share of the company was 50% or $50m at the time of exit. How much taxes would I have to pay on my share? And after taxes, how much cash would I have left over to party with?
2006-12-20 10:52:44 · 6 answers · asked by friedchicken 1 in Business & Finance ➔ Taxes ➔ United States
Is this clear $50M Gross income from the sale in cash? or some other form?
If I pulled a rabbit out of the bum would i be coco for cocoa puffs?
2006-12-20 12:13:03 · answer #1 · answered by john e 2 · 0⤊ 0⤋
You would certainly have had some expenses. But if you were fortunate enough to do something like this, you'd want to have a good accountant from the time you started up until after you sold - that person would advise you.
If you sold for $100M, you'd pay a ton of taxes even on your 50%, but have more than enough left over to party the rest of your life.
2006-12-20 19:12:04 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You'll pay a lot of taxes. So much that it almost isn't worth starting the business. That is the way taxes crush business.
Just get a job at Wal-Mart or MickeyD's You'll feel a lot better at tax time.
2006-12-20 21:00:56 · answer #3 · answered by Peter C 2 · 0⤊ 1⤋
I think that question is not quite so important and your taking action to create and grow the company.
You would have plenty left to party with.
2006-12-20 18:56:05 · answer #4 · answered by Sky Salad Clipper 3 · 0⤊ 0⤋
First get the money then you can hire a great accountant to help you keep as much as possible.
2006-12-20 18:56:59 · answer #5 · answered by zocko 5 · 0⤊ 0⤋
it depend on how good of an accountant you have working for you.
2006-12-20 18:54:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋