Thinking of Selling Your Business?
April 25, 2023 | Barton Walter and Krier
Are you thinking of selling your business but don’t know where—or when—to start? We can help. Barton, Walter & Krier provides Transaction Advisory Services to help clients understand the sell-side process basics when the time comes. Keep reading to learn more about how we can help make sure you’re a prepared seller. Value-Added Service “I think there’s a lot of bad advice that gets thrown around out there, and we want to make sure people get proper advice,” said Blaine Andersen, Managing Director of Transaction Advisory Services (TAS). Andersen is BWK’s foremost authority on TAS, a value-added service that helps ensure our clients have the information they need to make sound decisions on either side of a transaction. For the purposes of this blog, we will focus on the sell-side process. Knowing the Company’s Financial Health One of the most important things people should be aware of before starting the selling process is the financial health of their company. And fully understanding the business is key. “I think every company is a little bit different,” Andersen said. “But the roots of it all are very similar in that you try to understand where and how they’re making their money.” Andersen suggested recognizing and analyzing financial elements including: Walking through the general cash flow […]
Read MoreBe Prepared for Tax Season
February 28, 2023 | Barton Walter and Krier
With the new year officially here, it’s only a matter of time before we’re all in the midst of the tax time rush. Last-minute number crunching can be stressful, both for business owners and their tax professionals. We have some basic and simple ideas to help ensure you’ll be prepared for tax season so that your filing process goes smoothly. Organize Financial Records and Receipts Hopefully you’ve been keeping tabs on your business’s performance over the last year. Documenting and analyzing financials each month gives you an idea of the health and profitability of your company. Bring those records as well as any receipts for business expenses when meeting with your tax professional. Keeping your documents together will help ensure you have the information your tax preparer needs when he or she prepares your tax forms. Divide Expenses, Determine Costs Sometimes the line between business and personal expenses becomes blurred, especially for small business owners. Be sure to go through your expenses and determine which one goes where. Double check your personal account for business expenses you may have forgotten. Also, the IRS has specific rules for Section 179 deductions. This allows you to deduct the cost of certain property as an expense when the property is used for your business. You may […]
Read MoreLike-Kind Exchange Basics
February 23, 2023 | Barton Walter and Krier
Buying and selling makes the business world go ’round. This is true for products, services, and even real estate. But be aware that selling property for a significant financial gain often means you’re paying a substantial amount of taxes. Reinvesting those profits can help defer tax payments on qualifying property sales. Let’s look at like-kind exchange basics and how this strategy can benefit you. Defining Like-Kind Exchanges If you make money from the sale of a business or investment property, you’re required to pay capital gains tax on the profit. Capital gains tax rates depend on the time frame of the sale and its profits —short-term at 10-37 percent, or long-term between 10-20 percent. Internal Revenue Code Section 1031 allows a seller to postpone paying capital gains tax by reinvesting the profit in a qualifying like-kind exchange (or 1031 exchange). However, to avoid a tax liability, keep in mind that: • The property being sold cannot be a principal residence• Property purchased with the profits must be similar to the property being sold• The properties must be exchanged and not sold directly• Properties must be within the U.S. to qualify• The property for purchase must be identified as a like-kind exchange within 45 days and purchased within 180 days of the sale In […]
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