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...]
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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...]
How to choose the right business entity (Part 3)
In Part 1 of this three-part series, we discussed the pros and cons of forming a sole proprietorship or a single-member LLC (taxed as a proprietorship). In Part 2, we discussed what the three possible corporate forms of business have to offer. In this new article, (Part 3), we’ll consider your options if you’re acquiring or starting a business with more than one … [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...]