There are several ways to handle a parent’s home depending on their particular health or financial situation. At a bare minimum, your parents should have a Revocable Living Trust to ensure the orderly and effectively transfer of the home to the family and avoid probate in states where the expense is significant.
I don’t know how this whole craze started and frankly, or who started the spread of misdirection and misinformation, but the LLC for all of its good and bad is here for the foreseeable future. Thus, I would be remiss not to tackle this important topic set the record straight.
There comes a time in the lifespan of just about every business where the potential for growth (maybe substantial growth) is there, but additional capital will be necessary to make that growth happen.
Please realize that you actually may have a unique situation and there isn’t a one-size fit’s all approach or answer to a every new business situation. You will most certainly have a set of facts that are different from friend’s, mine or anybody else.
There are many myths about tax planning, business credit and asset protection sold by inexperienced and non-licensed professionals.
Essentially, just for 2014, we return back to the $500,000 Section 179 limit and the $2 million overall investment limit for this tax year. This also includes the prior rules that the taxpayer can’t deduct 179 depreciation in excess of profit.
It’s alarming for me to see how many clients are not maintaining their checkbooks and records properly or are not even keeping separate books at all for each of the companies they own and operate. Maintaining your books is not something I advocate solely as a tax-savings strategy; it can also prevent you from losing your sanity and getting dragged into a potential lawsuit.
For most of us, our home is one of our most valuable assets. It truly is our “castle,” but can also be one of our most vulnerable assets. Although we need to protect it at all costs, we face several dilemmas that create significant hurdles to protecting the complete value of our home.
Meals are a highly underutilized expense and should really constitute a healthy line item on a small business owner’s tax return. Please make sure you consider all of your meals and entertainment that take place when doing business. So much business is completed over food and it’s important to track all of these expenses.
I was recently in New York at the Entrepreneur Conference sponsored by Cannon and I was shocked at the discussions and excitement around Crowdfunding. We have known this is the newest form of raising capital for small businesses and start-ups, yet much of the country has been waiting for the Final Regulations from the SEC.