Here’s a good business rule to follow: buy low and sell high.
That’s good, but the three-step process below is even better:
Depreciate to zero.
And you can accomplish this by using antiques in your business.
Let’s say you narrowed the purchase of your business desk to either an antique or regular desk. Each desk sells for $5,000.
Which desk gives you the best possible business result? The antique.
Is the difference worth thinking about? Yes, the difference is absolutely worth thinking about!
Let’s say you buy the antique and Fred, your buddy, buys the new desk. You each use your desks for 10 years and then sell them.
You sell your antique desk for $15,000.
Fred sells his regular desk for $500.
You are kicking Fred’s you-know-what when it comes to selling results. But to see the true financial results, you need to look at the after-tax numbers.
Let’s say that both you and Fred are in the 35 percent income tax bracket and 15 percent capital gain bracket at the time of sale. On the $15,000 proceeds from the sale of your antique desk, your federal taxes are ... Log in to view full article.