Tax planning opportunity: buying and selling decisions

Vehicles, equipment, real estate, securities and businesses: When to buy? When to sell? What’s taxable?

When it comes to tax, the timing of an asset purchase or sale can make a big difference on your tax bill. Here are a couple decisions a financially fit business owner might discuss with their accountants right before their year-end:

• The accelerated depreciation rules are in effect, so buying equipment or vehicles right before your year-end could save you tax.  

• If you have capital gains this tax year, you can sell some loser investments. The losses will offset the gains, and save you tax.

Talk to your accountant if you have any of buy-sell decisions coming up in the next couple years.