BUS 670 WEEK 1 DQ 2 Assignment Example | Topics and Well Written Essays - 250 words

wad 670 WEEK 1 DQ 2 - Assignment ExampleIn addition, independent businesses may benefit from it since when a business owner happens to pass on their business at death, the basis of the income tax will likely step up to the death value date. More everyplace, an advantage is accrued because the entity owners family can freely sell it exclusive of capital gains. Further, there exists a possibility of the income tax basis being carried over in a situation where the owner provided the business to their family as a gift (Parrish).According to Gwen Seaquist in the book Business Law for Managers some of the benefits/merits that can accrue from capital gains lies in the fact that it provides a more favorable and encouraging federal tax rate of 20%. This includes both married and separate tax payers. A business capital gain gets reaped by the business in a K1 pass-through revenue enhancement form that normally is issued by LLC or an S corporation to transfer the profits to the individual o wners earlier than the company.Seaquist, however, as a drawback implies that since the investments exists on the companys records or books, a more complex and fine accounting may be needed. This could result to the delay of finances or tax returns of the company. Additionally, it becomes crucial for bingle to consult their accountant in order to consider how their sales timing may come to on their financial/tax processing.Parrish, Steve. Zero To 60 What Business Owners Need To Know About jacketGains. Forbes. 30Th January 2013. Web. 22nd January 2015.