The Trump-era tax cuts are scheduled to end in 2025. Unless Congress decides to extend the cuts, regular income and long-term capital gain taxes will both go up. This means that you could be taxed more across the board, and specifically, on profits from sources outside of your core business, such as investments, real estate royalties, limited partnerships, and estates and trusts. Tax hikes could also affect profits realized from business transactions such as the sale of your business.
At Stallcup Group, we are extremely concerned that the end of the tax cuts will grossly impact independent pawn shop owners when they do finally decide to sell their pawn businesses. We often tell independent pawn shop owners that the time to sell is now because it is a seller’s market (which it is, due to the national pawn companies’ race to enter into new markets, buy out as many independent shops as possible, and ensure the future profitability of their corporations), but the end of the Trump tax cuts may be an even more compelling reason to consider selling sooner rather than later.
Whether an end to the tax cuts comes at the end of this year or at a later date, the bottom line is that if you’re on the fence about selling your independent pawn business, you’re taking a huge gamble by not making fast plans sell your business now. You can hope for the best and wait to see just how long the Trump tax cuts may or may not be extended, or you can begin developing your business’s exit strategy today.
If you’re ready to sell, Stallcup Group assist you with exit strategy development, determining your pawn business’s worth, marketing your pawn business to national buyers, and every aspect of the negotiations and closing processes. If you want to get the most out of the sale of your pawn shop, contact Stallcup Group. Our initial evaluation of your pawn business is free.
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