Returning Value Blog

If you are trying to sell appreciated commercial real estate in today’s market, you may have to compromise. For instance, if you refuse to budge on price, you might have to make other reasonable concessions, such as agreeing to an installment sale for a buyer with limited liquidity. As the name implies, the buyer pays you in a series of installments instead of providing all the cash up front.

This could actually be beneficial from a tax perspective if payments are made over two years or more. In that case, not only do you defer some of the tax due on the appreciation in value, but you may reduce your tax liability.

The summer is not just the season for recreation and relaxation. It can also be the time to reduce your 2015 tax liability. Here are eight prime examples for individuals and small-business owners:

The FASB issued an exposure draft proposing a one-year delay of the effective date for the new revenue recognition standard that it issued jointly with the IASB in 2014. Under the proposed amendments, the revenue recognition standard would take effect in 2018 for calendar year-end public entities. It would take effect for private entities in 2019.

In May 2014, the FASB issued ASU 2014-091 (the new revenue standard), establishing a comprehensive revenue recognition standard for virtually all industries in U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries.

Until recently, software development and manufacturing have been very different industries. Under the recent Internal Revenue Code Section 199, Domestic Production Activity Deduction (DPAD), these industries may be meeting the same definition. This could mean a significant permanent tax deduction for software developers.

It is hard to open a business and turn it into a successful operation. Despite the best efforts of entrepreneurs, a vast number of new businesses in the United States fail each year. Instead of starting from scratch, you or another family member, such as an adult child, might search for a ready-made franchise. There are thousands of them in the marketplace, ranging from McDonald’s to Jiffy Lube to Fantastic Sams hair salons.

The U.S. manufacturing industry is in the midst of a comeback. Manufacturers are gladly shifting from securing demand to meeting demand. However, reworking the U.S. transportation infrastructure is essential to the success of this progress.

When business owners are selling their business, many believe that it will be the end of their working life. What these business owners do not consider is that this can be a time of excitement, new ventures and continuing personal growth. In order to seek out new ventures, business owners need to maximize the amount of money they’ll have when they leave the business. 

In September 2013, IRS released final regulations (“Regulations”) dealing with repair and capitalization of tangible property under IRC Sec. 162(a) and 263(a) and regulations relating to dispositions under IRC Sec. 168. These Regulations are effective for taxable years beginning on or after January 1, 2014. Every taxpayer with fixed assets is affected by these new rules; owners of real property are especially impacted. The Regulations are adopted through elections where indicated in the Regulations and by filing Form(s) 3115, Application for Change in Accounting Method, as indicated by the IRS in separate guidance.