The Bush tax cuts will expire at the end of 2010.  It was only last year that sentence used to read, “the Bush tax cuts are SET to expire at the end of 2010”.  With a projected federal deficit for this fiscal year of $1.8 trillion and next year to be above $2.0 trillion we know for sure there will be no tax cuts on the immediate horizon.  This means that both capital gains taxes will rise from 15% (federal level) to 20%, possibly 25% and for those in the highest tax bracket ordinary income taxes will rise to 39.6% if not higher (it has been 70% in the past).  Therefore, not including state income taxes, at the federal level that could mean additional thousands of dollars in lost earnings to Uncle Sam from the sale of your business.  If you have given any thought to the possibility of selling your internet business, now maybe the time to consider getting guidance from one of our highly experienced internet business brokers.  In addition to taxes it is important to also keep your eye on the economic ball.  Higher taxes do not become as big of a concern if business growth significantly outpaces the rate of tax increases.  However, if economic conditions remain flat or decline the impact of an increase on ordinary income taxes will certainly be felt in more ways than one.  It is not just the additional sums of money that goes to IRS Inc, it is also the loss in value of your business as a result of a stagnant economy.  Although valuations are most often calculated as a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization) buyers cannot escape the wrath of IRS Inc, either and as a result will come to the table with lower multiple offers.  These offers will also be pushing harder for bigger dollar allocations to parts of the deal that allow them to accelerate write offs over shorter time periods.  For example, instead of allocating a portion of the deal to goodwill a buyer would want to pay the seller as a consultant, doing so allows the buyer to write down these expenses over a couple years whereas with goodwill the buyer would have to spread that out over fifteen years.  Where one side benefits the other side loses.  In the case of the consulting agreement the seller would pay ordinary income taxes versus just capital gains taxes if that amount were allocated as goodwill.  The experienced team at iMerge Advisors will make sure you are getting the best advice.