tax strategy – Notable

Lean Wednesday Tip: Tax savvy family-owned businesses

“Family businesses allow tax savings through income splitting between parents, children or other relatives.”

Lean Wednesday tip: Buying a Business, tax savvy contracts

“When buying a business get a written guarantee; ensure your purchase contract includes a stipulation that requires the seller(s) to promise to only sell the business if there are no taxes owed and that the seller(s) will be personally liable to the buyer if this turns out not to be true.”

Lean Wednesday Tip: Tax deductible Holiday Expenses

“Employee parties/outings, public entertainment and charity events are 100% deductible.”

Lean Wednesday Tip: Maxing out Asset Depreciation Deductions

“If you max out asset depreciation deductions and have written it off 100%, it is best to donate it to reduce income taxes.”

Lean Wednesday Tip: Tax considerations for C Corporation Dividend Payouts

“Avoid double taxation of a C Corporation’s dividend payout by structuring payments to shareholders as consulting fees. Shareholders must actually offer advice for the payments to be considered valid tax deductible transactions.”

Lean Wednesday Tip: Issuing Section 1244 Stock

“Small C Corporations benefit from issuing Section 1244 Stock as it offers shareholders better tax treatment if they lose money on the disposition of their C corporation stock. It is best to create a written corporate resolution that specifically states that the shares are Section 1244 stock. Also, make sure to authorize more shares thanContinue reading “Lean Wednesday Tip: Issuing Section 1244 Stock”