taxes on sale of website

[sasquatch]

I've got a call into my accountant but how are you guys handling the taxes on a website sale.the idea of getting nailed for 35% just sucks.
Thx for any advice

 

[BigWill]

your accountant is the sasquatch?

 

[amateursurgeon]

Set it up so it's capital gains instead of income tax. In UK, CGT much lower than Income.

 

[BluAffiliate]

Getting hit with the 35% means you're in the highest tax bracket, and judging from your grammar and that you're asking this question here...

 

[Telva]

In the UK, utilise Entrepreneurs Relief and pay roughly 9% tax after allowances are deducted. My accountant was definitely worth the cost that year

 

[Sharksfan]

Selling a website should never be more than 15% - it's a capital gain.

Hire a CPA if the above is not true.

 

[DreamMachine]

Selling a website should never be more than 15% - it's a capital gain.

Hire a CPA if the above is not true.

The tax rate on a cap gain depends on the country. Here it's taxed at your marginal tax rate (with a 50% discount if you held the asset longer than 12 months).

 

[learningcurve]

nevermind...lol

 

[Sharksfan]

The tax rate on a cap gain depends on the country. Here it's taxed at your marginal tax rate (with a 50% discount if you held the asset longer than 12 months).

OK, good point.

In the US - as long as you have some sort of corporate structure - it should be a capital gain.

 

[McBob]

What country are you in?

If you and your client are in the EU, you also have VAT to take into account.