[BusinessManJon]

Hi,
Currently I have the opportunity to purchase a near million dollar property for one of my businesses, but in-order to make the down payment I need to sell off two of my other businesses. My problem is that I will receive $300,000 for the two businesses and need to figure out a way to lower the income tax from this, which I believe will be nearly $100,000. Of that $300,000, $165,000 will pay off my home mortgage and the left over $135,000 will be my 15% down-payment for the building. I have three ideas but with only a few accounting classes under my belt I can't trust my own judgment.

1. Have business partner create business and I buy into it for $135,000
2. Pay down-payment with own money outside of business
3. Loan $135,000 to business and have business pay back with 50% of building(my share of company)

The only way I can make this work is if I can figure out a way to deduct enough to drastically reduce that income tax.

Any help is much appreciated,
Jon

[BusinessManJon]

Correction -- after looking at this again I realized that this will be considered a capital gain and is subject to capital gains tax of 15%. Business were bought 30+ years ago for near nothing, so the tax will be $45,000 not $100,000. This is a great reduction but I still need to reduce even more.

[Clough]

Hi, BusinessManJon!

I'm going to ask that your question be moved to the Taxes forum topic area. I think that you'll get the most helpful and professional answers there.

Thanks!

[AtlantaTaxExpert]

Jon:

First, I do NOT think this is a real-life question. Given the levels of income involved, you would RUN (not walk) to a competent local tax professional to get the proper guidance on this issue.

Second, no one answered the question, and you did no follow-up.

That makes this a homework assignment, which, as a matter of policy, will NOT be answered on this forum.

This is simple deductive reasoning, which is why no one posted an answer.