What’s the smart way to acquire a business? The answer is simple… Buy the target company’s stock and treat the deal as an asset purchase! When you do, both you and the seller benefit tax-wise. But be aware of this important fact… When you’re buying a business, you really have to know what you’re doing. Which is why I suggest that before you do anything, you take a close … [Read more...]
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There’s hidden cash in the IRS standard mileage rate!
It’s sad but true… 83% of businesspeople think that use of the IRS standard mileage rates takes care of vehicle expenses for business purposes. Wrong! The truth is they’re costing themselves big bucks by failing to deduct a loss on the sale of their business vehicle. Want to find out the right way to play the IRS’s mileage game? Read my new article titled Tax … [Read more...]
How to buy a business that owns intangible assets
Thinking about buying a business? Then my new article is for you! You see, in past issues I’ve talked about… The kind of entity that owns the business The kind of entity you will use to operate the business The tax impact of your situation In this new issue, I’ll show you how it all comes together when you buy a business that owns intangible assets like … [Read more...]
Buying a business? Make tax-smart price allocations!
When you acquire a business through an “asset purchase,” you win in two ways. You can generally avoid exposure to unknown or undisclosed business liabilities. The tax-basis of the assets can be stepped up (increased) to reflect the purchase price that you pay for the business. The step-up gives you bigger depreciation and amortization deductions. But there’s another … [Read more...]
How to buy a business the smart way
Thinking about buying a business? Then one of the most important decisions you’ll have to make is whether to purchase the assets of the business or the ownership interest in the business. And remember, either way there are important legal and tax issues to consider. If you are planning on buying a C or S corporation, a partnership, or an LLC (that’s treated as a … [Read more...]