Calculating adjusted tax basis in a partnership or LLC takes us into a complex area of tax law. Remember that the tax basis is equal to the purchase price of an asset minus any accumulated depreciation. This formula sounds simple enough, but a business’s entity type can introduce unique complications in determining the initial value of an asset and the total depreciation. While some view partnerships as a diminishing business type, LLCs remain as popular as ever. However, many LLCs end up … [Read more...]
Becoming Your CPAs Best Quarterback
John Elway. Brett Favre. Peyton Manning. Tom Brady. Even if you've never watched a game of football in your life, you've probably heard at least one of those names (after all, who hasn’t seen one of Peyton’s commercials?) These are 4 of the best quarterbacks to play the game, ever. But what makes them great quarterbacks? And what the heck does this have to do with you, a financial advisor? I’m so glad you asked. Today we’re going to take a few pointers from the pros and help you become … [Read more...]
How to Choose the Right Entity
Which type of entity is right for you? There are four types of entities and the one you choose can either work for you or against you. Let’s take a good look at some of the more important pros and cons associated with each entity type. 1) Sole Proprietorship This is the most common business structure. It’s easy to form and it offers owners complete control. The downside? The owner is personally responsible and liable for all financial obligations of the business. If you get sued … [Read more...]
