If I pay off my 3% mortgage, should I consider it to be the equivalent of buying a risk-free bond at 3% as I’m foregoing the tax deductio…

Answer by Wray Rives: There are a lot of variables here and we have to make some assumptions , but if you are writing off the mortgage interest for tax purposes and assuming you are in an effective 20% tax bracket, then the mortgage is costing you 2.4% net of tax.  That means paying off Read more about If I pay off my 3% mortgage, should I consider it to be the equivalent of buying a risk-free bond at 3% as I’m foregoing the tax deductio…[…]

If I buy an investment property in New Hampshire as a personal asset, how easy is it to transfer it to an LLC later? Is it possible as at…

My @Quora answer to If I buy an investment property in New Hampshire as a personal asset, how easy is it to transfer… Answer by Wray Rives: Yes it is possible, but not necessarily cheap and easy.  You need to be sure you understand why you want to transfer the property to an LLC.  Most Read more about If I buy an investment property in New Hampshire as a personal asset, how easy is it to transfer it to an LLC later? Is it possible as at…[…]

Transitioning from non-funded personal project to funded build stage, how should I structure the project for this next step?

My @Quora answer to Transitioning from non-funded personal project to funded build stage, how should I structure the… Answer by Wray Rives: Thanks for the A2A, but there are way too many variables, even with the details you have given, to properly answer this question.  Here are the major issues I see that you need Read more about Transitioning from non-funded personal project to funded build stage, how should I structure the project for this next step?[…]

What are the tax implications of the asset acquisition vs. company acquisition in the US?

Answer by Wray Rives: Asset sale- Buyer's perspective Buyer is able to step up the basis of shorter lived assets, resulting in quicker depreciation and offering a tax advantage with lower taxes in the early years post acquisition. Seller's Perspective Asset sales usually result in higher tax for sellers because some categories of assets are Read more about What are the tax implications of the asset acquisition vs. company acquisition in the US?[…]

How do I process SaaS payments with the help of a US LLC/corporation?

Answer by Wray Rives: SaaS or subscription services are generally consider digital goods for tax purposes and are subject to US income tax and depending on the state you register in state level income and sales tax also. First forming a US corporation will require filing a US corporate tax return and paying US federal Read more about How do I process SaaS payments with the help of a US LLC/corporation?[…]

Should I join a start up as a 1099 employee or W2 employee?

Answer by Wray Rives: First off it is not really a choice you make of being an independent contractor or employee.  If you receive a 1099, you are not an employee and just referring to yourself as a 1099 employee, probably means you don't qualify and you really are an employee who should be receiving Read more about Should I join a start up as a 1099 employee or W2 employee?[…]

What steps are needed for the IRS to begin taxing intraday trade profits at 50%?

Answer by Wray Rives: The US House has to propose an amendment to the Federal Revenue Code, that says intra day trading profits are taxable at 50%. This generally comes from the House Ways and Means Committee. The US House has to vote on and pass the bill The US Senate has to either vote Read more about What steps are needed for the IRS to begin taxing intraday trade profits at 50%?[…]

What are legal ways a U.S. company can avoid paying income taxes?

Answer by Wray Rives: You are buying a company that generates $3M in EBITDA but you are seeking free tax advice on Quora.  If you are legitimate, do yourself a huge favor and hire some competent CPA's and attorney's to help you structure the deal.  I consult on M&A deals all the time and there Read more about What are legal ways a U.S. company can avoid paying income taxes?[…]