Free Tax Information Using Bidawiz

By Bryan Zak | SBDC
January 1,2015 | SBDC | Articles

When Vice President Al Gore said in 1996 that the information super highway would be something that would change our lives and the way we conduct business he was right. We are now, each and every one of us, whether we like it or not, living where access to the information super highway is as close as the nearest Internet access point. Not only are we able to access new information but also using the “Cloud” we often access data that we have stored about our own businesses.

 

One of the greatest breakthroughs caused by this wealth of information is a much clearer understanding on how to properly plan to make clear business decisions based on hard data such as what type of business entity to become, or what would be the tax implications of selling versus retaining a business.

 

A tool that I have recently read about in a Small Business Administration newsletter is called “Bidawiz” and you can use it for free at www.bidawiz.com. The tool is organized by providing answers to tax questions from anonymous business owners organized by category. Or, if you do not see what you’re looking for you can post any questions and you will have an answer back within minutes.

 

Here is an example of a response you may find related to a question about depreciation recapture implications from the transfer of depreciable personal property to a son.

 

Example: You transferred depreciable personal property to your son for $20,000. When transferred, the property had an adjusted basis to you of $10,000 and a fair market value of $40,000. You took depreciation of $30,000. You are considered to have made a gift of $20,000, the difference between the $40,000 fair market value and the $20,000 sale price to your son. You have a taxable gain on the transfer of $10,000 ($20,000 sale price minus $10,000 adjusted basis) that must be reported as ordinary income from depreciation. You report $10,000 of your $30,000 depreciation as ordinary income on the transfer of the property, so the remaining $20,000 depreciation is carried over to your son for him to take into account on any later disposition of the property.

 

I hope this blog has peaked your interest and you take some time to visit “Bidawiz”. If your like me you will “bookmark” this tool and save it for those soon to be inevitable tax questions, or if your proactive you can start using it right away to plan for the future.
Bryan Zak