Do you have an asset that’s owned by your business that you want to convert to personal use?
Maybe a car, a computer, office furniture, or something else of value?
If the answer is “Yes,” be careful. VERY careful. You see, when you make a conversion like that, you first could face some recapture and then, after that, the business asset retains its business attributes. Which means you face gain, loss, and additional recapture at the time you finally dispose of the asset.
Want to find out how to deal with this aspect of the tax law the right way? Read my new article titled Tax Tips: Learn What Happens When You Convert an Asset from Business to Personal Use.
Three ways our fact-filled article can help you:
- We’ll tell you the smart way to plan for the conversion of the asset. When you deal with the IRS, it usually makes sense to plan ahead. Which is why you should keep a permanent file that tracks the value of your assets over time. We’ll explain this fully when you read the full article.
- We’ll provide an informative “real life” example. Marie Jones bought a $50,000 car that she deducted using IRS mileage rates. She then quit using the car for business and her husband Bill started using the car. Learn how tax law treats Bill when he sells the car. Read the full article.
- We’ll give you the nuts and bolts. In the conversion to personal use, you could have a significant tax benefit that the personal use is destroying every day. Find out what this is and don’t let it happen to you. Read the full article.