World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Merger & Acquisitions FAQ – June 2014

Q: I am planning on buying a large piece of equipment, is there any way I could deduct the cost of this equipment rapidly?

A: Right now, no.  Unfortunately, Congress has failed to act in passing a new tax law for 2014.  The problem with this, unlike in years past, is that Section 179 and Bonus Depreciation are unavailable.  We have a hint that both advanced depreciation methods will be made available, but it is largely speculation at this point.

Q: I am interested in having my business valued for a number of reasons.  Is a valuation done for estate planning purposes effective for other purposes such as financing as well?

A: Generally, you would want to have your valuation reviewed or updated to reflect accurate value to a bank or when using the valuation for other purposes.

Q: I am selling my house.  Does the primary residence exclusion still apply?

A: While large gains on homes in this decade are rare, yes IRC Section 121 does allow a large exclusion.  Under Section 121 of the Internal Revenue Code home sellers can exclude up to $250,000 individually or up to $500,000 jointly on their tax returns.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors