[Movies] Did George Lucas Sell Star Wars For Tax Reasons?
Posted by Jeffrey Harris on 11.29.2012
Lucas reportedly wanted to beat the capital gains tax increase...
Seeking Alpha released a report that claims George Lucas got a huge financial incentive in selling the Star Wars franchise and Lucasfilm to Disney for $4.05 billion before the end of the year for tax purposes.
Luke Nagell writes: "Lucas built his empire over many years and is sitting on a very large capital gain. Although Lucas has not publicly stated that tax policies had anything to do with the timing of the sale, there is speculation that it was a large factor. If outcomes from past tax policy changes are any indication of what will result this time around, then be prepared for a lot more selling between now and year-end. The election results are in and as expected Congress and the White House maintain status quo. As a result, certain tax codes like the capital gains and dividend and interest income tax rates are at risk of a significant increase. As the law currently stands, the capital gains tax rate will see the largest year-over-year increase in history. Some intelligent investors didn't wait for election results to lock in the low capital gains tax rate."
According to Nagell, an example of such an investor is George Lucas.