Relocate to Optimize Cash Flow
When a franchise or business owner considers ways to increase cash flow and reduce expenses there are many options. Strategies to consider for improving the bottom line include relocating to a better location, converting a business to a proven franchise, and upgrading to more efficient equipment. If selling a franchise or business, learning about alternatives to minimize taxes is crucial, especially when it saves money.
A tax deferral and creative financing tool known as 1031 exchanges defers capital gains and recaptured depreciation taxes when selling and replacing real and personal property. A sale triggers capital gains and recaptured depreciation taxes that can represent an indefinite, interest free loan for higher yielding acquisitions or to adjust your asset portfolio. Knowing what property can be exchanged, in what time frame, what risks to avoid will help you and your advisors take advantage of the tax deferral and self financing strategy.
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