buying into my corp.???

Discussion in 'Business Operations' started by LawnPerfect, Jan 5, 2004.

  1. LawnPerfect

    LawnPerfect LawnSite Senior Member
    Posts: 318

    Okay guys I have a good one for you.
    My father in law has recently retired and taxes are killing him.
    Due to the up-comming season I am looking to purchase new equiptment to the tune of about $15,000.00. Rather than going to the bank we would rather work a "buy-in" out with my father in law.
    What we are looking to do is sell him a percentage of my llc for $15k.
    So far this is easy enough.
    Here's the kicker. We are looking into helping him out on his taxes. So far we have thought about the business leasing the equiptment from him in a way that would show him taking a loss.
    We want to keep this as simple as possible and would rather not go through the hassle of creating another corp "father in laws rental equiptment or whatever".
    Any of you guys have any ideas?
    Thanks in advance for your help.
     
  2. Mike Fronczak

    Mike Fronczak LawnSite Senior Member
    Posts: 301

    My advise. Talk to your accountant or CPA. Thats their job(saviung money on taxes). If you don't have a good one.......find one ASAP. Two of the most important things you need to be sucessful.......a good acountant & a good attorney.
     
  3. LawnPerfect

    LawnPerfect LawnSite Senior Member
    Posts: 318

    Great advice mike. and trust me, I have both.
    The only thing is, my attorney is in trial until the end of the month and my accountant is swamped. lol
    They are great to have but hell to catch up with.
    This should be simple enough that us yard monkeys can figure it out.
    ;)
     
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Best advise Don't do anything with your father-in-law unless your trying to get rid of your wife. lol


    Mac
     
  5. LawnPerfect

    LawnPerfect LawnSite Senior Member
    Posts: 318

    Mac, as always you make a very good point. But the wife is going off to law school in august so trust me, I sticking by her so that one day I will just have one lawn to worry about. LOL
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Oh man you are glutton for punishment. Wife becomes an attorney runs back home to dad and they conspire to get your company. The 1 lawn you mow will be theres. LOL

    Let me help you out on this #1put wife to work while you go to law school you become an attorney #2 sue father-in-law to tie up his assets so that you and your wife can enjoy the fruits of his labor. And if wife don't like it get a new young one your an attorney so ladies & money are no problem. :D

    Mac
     
  7. LawnPerfect

    LawnPerfect LawnSite Senior Member
    Posts: 318

    Mac you have me rolling on the floor!

    chuck
     
  8. CHAN

    CHAN LawnSite Member
    from AL.
    Posts: 132

    Let him pay for law school and give you gifts of up to 15000 I think i was reading to cut his taxes down.
     
  9. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    Yeah, he can gift you the money outright, and I think you both avoid the taxes that way. Don't take my word on that though.
     
  10. LawnPerfect

    LawnPerfect LawnSite Senior Member
    Posts: 318

    Thanks guys. i didnt think about the gift tax exclusion. That might be the way to go. Ill do some checking on it and will let you know what I find out. Once again, thanks for all of your help.

    Chuck
     

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