An intangible asset is something of value that is not physical in nature. Classic examples include brands, goodwill, and intellectual property. These things are worth a lot to companies but cannot be held or touched and are sometimes more difficult to value. What Is the Tangible Personal Proper...
In contrast, for the seller, asset sales often generate higher income taxes. Although some long-held intangible assets, such as goodwill, are taxed at capital gains rates, other assets can be subject to higher ordinary income tax rates.1 Moreover, if the assets sold are held in a“C” c...
A tax credit is a dollar-for-dollar reduction in your actual tax bill — as opposed to a tax deduction, which simply reduces how much of your income gets taxed. It’s truly found money because if a credit reduces your tax bill below z...
Henry's decision to abandon his treasured "Tin Lizzie" after 19 years and a staggering 15-million cars -- the last not very different from the first -- came almost too late, and his company lost a lot in money and goodwill during the long changeover to the belated new Model A. Yet ...
To illustrate, if you own a rental for 5 years and you write off $6,000 for annual depreciation, you need to pay tax in depreciation recapture of about $30,000 for the property sold. Depreciation recapture istaxed similarly to your regular incomeeven though you have already owned the renta...
With a stock acquisition, the owner is treated as making a disposition of a capital asset and any proceeds will receive capital gains treatment, generally taxed at 0 – 23.8%, but dependent on the owner’s income. How are stock acquisition strategies used?
Businesses operating as cultivators, processors, manufacturers, retailers, distributors, and microbusinesses must register with the California Department of Tax and Fee Administration (CDTFA) to obtain a seller’s permit. This is a prerequisite for applying for their state licenses. Also, distributors ...
The Model T, known for its affordability and simplicity, propelled Ford to success, but the transition to the new Model A was costly in terms of both money and customer goodwill. Despite strong competition and the onset of the Great Depression, the Model A was a success, and Ford continued...
Often, when buyers and sellers want to complete a deal but can’t agree on the price, they employ a strategy called an earnout. An earnout is a contractual provision stating that the seller of a business will obtain additional compensation if the business meets specified financial targets in...