Last year ushered in many changes on the tax front resulting from the American Taxpayer Relief Act and the Patient Protection and Affordable Care Act. For family business owners, a better understanding of these tax law adjustments can help them plan accordingly.
Most successful business owners are puzzled by use of the word “relief” to describe new income tax rates. The title is especially apt with respect to transfer taxes, since it’s now possible to shift at least $5 million to the next generation free of federal transfer tax. The income tax picture, however, has become significantly more complicated.