Why you might want to extract money from your business before next year

07/12/2012 | Nerd's Eye View blog

The tax rate on dividends is scheduled to rise after the end of the year, which means small-business owners might want to extract money from their companies before that happens, Michael Kitces writes. "[T]he reality is that while there is benefit to deferring tax payments as long as possible (by keeping it inside the business), that benefit is dwarfed by a near tripling of the dividend tax rate," he writes.

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