Do you operate your business as a C corporation? Would you like to turn it into an S corporation? If the answer is “yes,” be very careful! You see the IRS’s “built-in-gains” tax keeps a C corporation from wriggling out of double taxation by switching to an S corporation and then instantly selling or liquidating all its assets. If you want to stay in Uncle Sam’s good … [Read more...]
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How to escape the corporate-tax “lobster trap”
They say that corporate taxation is a lot like a lobster trap… “Easy to get in. Hard to get out.” If you are snared in a C corporation lobster trap and want out so you can switch to a sole-proprietorship, my new article is for you. You see, the conversion process to a proprietorship can be expensive and may or may not make sense for you. But don’t worry. I’ll give you all … [Read more...]
Why Section 1045 of the tax code can be your friend
Good news from your buddies at the IRS… If you handle things the right way, they’ll let you buy a small business, sell it a huge profit, and defer the taxes as if you had completed a tax-deferred exchange! That’s right. Thanks to Section 1045 of the tax code, you can enjoy the exact same tax-deferral benefits that you can get with a Section 1031 exchange. Want to find out … [Read more...]
How to turn antiques into business deductions
It’s a simple fact. Antique desks, clocks, cabinets, bookcases, rugs, conference tables, paperweights, and more, can add character and beauty to your office. But that’s just for starters because: Antiques can make great investments. They often appreciate in value. You can deduct antiques as a business expense if you know how to take advantage of the tax law. You’ll … [Read more...]
The right way to handle a Section 1031 rental exchange
Do you own rental properties? Do you want to grow your rental-property business? Then you need to know the ins and outs of the Section 1031 exchange. Mr. Adams did. That’s why he was able to overcome an IRS objection that his Section 1031 exchange failed because his replacement rental-property fit his son’s family’s needs. We’ll explain the Adams case and show you how to … [Read more...]