New Law Under Fire

A law enacted last year is under fire as House Republicans announced today that they would push to reverse the new accounting rules. The law in question requires taxpayers to pay capital-gains taxes from a business sale in an immediate lump sum.

The problem with the tax payout is that it affects all transactions, even those that cover several years. Lobbying groups for small businesses say this has had an adverse affect on the sale of businesses – reducing the sales prices of businesses by up to 20 percent in some cases. Others say that some sellers have been forced into debt by their tax bill.

A provision reversing last year’s law will be added to a package of small-business tax breaks next week. The Clinton administration and congressional Democrats realize the change is causing problems, but are reluctant to completely reverse the law.


Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.