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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How to avoid the “self-rental” trap
Here’s the “self-rental” story in a nutshell: You own a business that needs office space… So you buy a building and rent office space to your business… You collect the rent and depreciate the property… Your business gets to deduct the rent it pays you… As a result, the money never leaves your pocket. Sounds great, right? Well, it is if you know the special rules that apply … [Read more...]
SEP or 401(k); how to retire early (and in comfort!)
If you want a carefree (and scarefree) retirement, now is the time to act. Start by paying yourself first. You work hard and deserve it. Next, take advantage of a SEP or 401(k) retirement plan. The tax code lets you sock away your “contributions” in a tax-deferred plan that lets your money compound over the years tax free. (You pay tax when you withdraw funds years … [Read more...]
Dangerous Waters of Inherited Non-Spousal IRAs—Navigate Carefully
As you probably know, a traditional IRA is a wonderful tax-advantaged way to save for a secure retirement. What you might not know is that the rules concerning the inheritance of a traditional IRA can be tricky. In fact, the smallest mistake can prove extremely costly. This is especially true if you inherit an IRA from someone other than your spouse. Want to make sure … [Read more...]
How to incorporate tax free!
Want to incorporate a new or existing business — and do it tax-free! Then Section 351 of the tax code is for you! You see, thanks to Section 351 you can… Form a new business as a corporation Convert a proprietorship to a corporation Convert a partnership to a corporation We’ll show you how Section 351 can save you money and avoid problems when you read my new … [Read more...]