On December 22, 2017, the Tax Cuts and Jobs Act was signed and passed by both the House and the Senate. It was the most sweeping tax reform legislation since the 1980s. The new laws and regulations could affect selling your automotive center. Below is a brief breakdown of the tax laws.
For additional information on how these tax law changes impact you, contact your accountant. For additional information on purchasing or selling an automotive business contact us today. We’re here to help!
Taxes Changes Are Substantial and Permanent
The new tax bill contains major changes to the tax code, and many of these changes are permanent. The biggest changes to the tax code under the Tax Cuts and Jobs Act occur on the business side.
Some of the highlights include:
1. Corporate Tax Rate Reduction
You could see your tax rate reduced from 35% to 21%. This could help you with your business investment. So, if you are considering buying an automotive business, you may want to act now.
2. “Pass-Through” Entities
You can benefit from the tax laws if you have a pass-through entity such as a sole proprietorship, partnership, limited liability companies (LLCs), or S Corporations where the income of the business passes directly to you, the business owner, and you are taxed at an individual rate.
3. Schedule C Deductions for Small Business Owners
If you plan to buy a small business, you can take advantage of numerous deductions on your Schedule C, including home office, vehicle mileage, travel and lodging, advertising and marketing, and many others.
Summary
If you have been thinking about launching a business, the tax reform bill could make 2019 a great year to act on your idea. And if you have the capital to invest, the quickest road to profitability is to purchase an existing business.
Contact Us for a Free Initial Consultation
A reputable AutoCenter Sales business broker can help you buy an automotive center by providing access to numerous attractive listings and helping narrow your choices to those that best suit your passion, skills, and budget.
To find out more about our services and products or to schedule a consultation, call us at 1-800-874-5793. You can also send a message at info@autocenter-sales.com.