Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Timing can be one of the most important things you need to consider when you’re thinking about selling an agency. Why? Because the current capital gains tax rate (through the end of 2010) is at a historical low rate of 15 percent for the higher marginal income tax rates. While it’s unclear whether the capital gains tax rate will rise over the next two to three years, it’s a safe bet that it will not go down.

Assuming Congress takes no action in 2010, under the existing laws, the capital gains tax rate will automatically increase to 20 percent on January 1, 2011 for a whopping 33 percent increase.

So how does this affect owners of retail insurance agencies, MGAs, and MGUs who are contemplating a potential sale or creating a perpetuation plan? Capital gains taxes can dramatically impact on what you “take to the bank.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.