Bubble burst

The more income you claim on your business at tax time, the more you will be able to ask for on MLS! If you write off all your income, the bank will have a difficult time lending on your business when someone tries to buy it!

What if you needed to sell your business in a pinch for a good price?
You would either need to:
1. Redo your last 2 years of taxes (your accountant can redo your books and you’d have to pay your updated taxes. You could probably pay after the sale of your business from the proceeds.)
2. Sell for a considerable discount
3. Carry the financing for the new owner
Less is not always more!
For Example: If you didn’t show $10,000 of your income for whatever reason, you may save $2,000 at tax time but when you go to sell your business, that extra $10,000 is typically worth 2 1/2 times in value. Therefore you are trying to save $2,000 but it could be costing you $25,000.

If you would want to talk more about this please give us a call!

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