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<blockquote data-quote="Eric Cagle" data-source="post: 74008" data-attributes="member: 277">Re: Making the next step in the PA biz... Let&#039;s hear your thoughtsYes and sort of. There are some legal tax moves you can do. I am going to check with my accountant on a few of them because the laws and loop holes change from year to year and I don&#039;t want to give any wrong information. One that I am pretty sure of is that you can trade for other equipment or towards the purchase of other equipment and you are only taxed on the difference between the trade and the cost of the new gear. If it is at zero on the books then any amount you sell it for is considered income but here again you can take a capital expense if you purchase new equipment with that money and it is less than the maximum limit for the tax year.The other thing is when you do sell it you have the money to pay the taxes on it right then. The rest you get to keep. I would suggest you do it then or figure the amount you are going to owe on that transaction and put the money in a bank account that you don&#039;t touch until tax time or you could be in for a surprise like Ivan mentioned.</blockquote>

[QUOTE="Eric Cagle, post: 74008, member: 277"] Re: Making the next step in the PA biz... Let's hear your thoughts Yes and sort of. There are some legal tax moves you can do. I am going to check with my accountant on a few of them because the laws and loop holes change from year to year and I don't want to give any wrong information. One that I am pretty sure of is that you can trade for other equipment or towards the purchase of other equipment and you are only taxed on the difference between the trade and the cost of the new gear. If it is at zero on the books then any amount you sell it for is considered income but here again you can take a capital expense if you purchase new equipment with that money and it is less than the maximum limit for the tax year. The other thing is when you do sell it you have the money to pay the taxes on it right then. The rest you get to keep. I would suggest you do it then or figure the amount you are going to owe on that transaction and put the money in a bank account that you don't touch until tax time or you could be in for a surprise like Ivan mentioned. [/QUOTE]

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