Monday, March 22, 2010 at 09:11AM Section 1031 or "Like Kind" Exchanges are used to defer tax on property transactions. This video explains the mechanics of a 1031 and highlights the role of the qualified intermediary. What I didn't mention, but should have, is that 1031 applies to personal property as well as real property.
Friday, March 19, 2010 at 10:17AM Most business owners pay down debt every chance they get because it feels good, it give them competitive advantage and it increases the health of their business. However, debt payments are not tax deductible and business owners can get a nasty tax bill even though they have no cash on hand because the money was used to pay down debt.
balance sheet, debt, income statement, liabilities, tax Thursday, March 4, 2010 at 03:25PM Section 179 of the Internal Revenue Code allows businesses to take current year tax deductions for capital asset purchases. It can be good for reducing current year tax expense but it can also hinder the comparability of after tax income. Business owners who understand this have less risk of underestimating their "gut level" tax position for the year.
depreciation, election, irs, section 179, tax Tuesday, February 23, 2010 at 10:40AM Accounting for inventory has been getting some attention in the press lately. The LIFO method is often not understood and CEO's would do well to know why their particular inventory method was chosen and what effect it has on the income statement and the tax return.