How much can one expect to keep after taxes for a website sale?

If I sell my site, how much do I get to keep?

[Sal Collaziano]

I have a site that's received several offers ranging from $1,000,000.00 to $2,000,000.00 - about how much of that will be mine after taxes? As far as I know, I only keep 50% and the rest goes to the IRS. Is that a correct assumption?

Thanks in advance...

[Sal Collaziano]

Still looking for help if anyone knows the answer...

[Marketing Guy]

I'd speak to an accountant for that level of money.

I'm not sure how similar the US system is to the UK (and I don't even know the UK system too well! :P), but as far as I'm aware you would pay income tax (or the equivalent - what you would pay in tax if the money was a salary). But potentially you could invest the money in your business and pay tax that way.

Again, I have to state I really don't have a clue about all this, but I've vague idea that you will basically pay more tax if you keep the money personally than if you kept the money in a business. Income tax vs capital gains tax? I really dont know. :) I hate tax. Just pay someone to do it all for you!

Congratulations on the offers for your site.

MG

[oddsod]

The chances are that you'll have to pay Capital Gains Tax if you were in the UK. But, it does depend on how the business is structured now, how you are distributing the proceeds (for example, if you're investing in some higher risk businesses you're exempt from CGT provided you maintain the investment for specified periods of time ), whether you're selling the whole company or all the assets (sounds only slightly different but it isn't) etc.

Sal, sorry, but really for that kind of money you should be speaking with your accountant and then double checking that with a tax advisor.

[Sal Collaziano]

Thanks, guys.. I'm in the U.S.. My Wife spoke with her Sister who asked her Husband (he's a CPA) - and he said I'd have to pay nothing. That's why I came here.. I suppose I need a good one-on-one consultation with somebody...

Thanks...