7 ways to prepare your business for sale
Succession planning can be a complex, delicate matter involving family members and a long transition out of the company. Another approach is to simply sell and move on. If you’re leaning this way, there are many ways to prepare: Develop or update your business plan and ensure your management team is ready to move forward without you. Upgrade IT systems so your company is “plug and play.” Obtain a professional valuation and optimize your balance sheet. Get ready for plenty of paperwork, too, and don’t forget to consider the tax impact. Contact us for help.
What’s your mileage deduction?
For 2017, you might be able to deduct miles driven for business, medical, moving and charitable purposes. For 2018, there are significant changes to some of these deductions under the Tax Cuts and Jobs Act (TCJA). Here are the standard mileage rates: Business: 53.5 cents (2017), 54.5 cents (2018). Medical: 17 cents (2017), 18 cents (2018). Moving: 17 cents (2017), 18 cents (2018). Charitable: 14 cents (2017 and 2018). But the rules are complex. And under the TCJA you might not be able to deduct business or moving miles on your 2018 return. Contact us for details.
Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future
If you purchased qualifying business property by Dec. 31, 2017, you may be able to take advantage of Sec. 179 expensing on your 2017 tax return. Sec. 179 allows eligible taxpayers to deduct the entire cost of qualifying new or used depreciable property and most software in Year 1, subject to various limitations. For tax years that began in 2017, the maximum Sec. 179 deduction is $510,000. For the 2018 tax year, the Tax Cuts and Jobs Act increases the maximum Sec. 179 deduction to $1 million. Many rules apply, so contact us to learn more.