Material Participation Test: Are You Involved in Your Business?

Posted by MMarquit under Taxes
From http://cashmoneylife.com 4318 days ago

One of the goals that many business owners have is to slowly disengage themselves from the day to day running of the business. While this is admirable goal, this situation could actually lead to some thorny tax issues — and increase the amount that they owe.

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Comments

Written by bigmoneyweb
4319 days ago

Well written. One of the best ways I know to create value in a business is for the owner to become operationally irrelevant. That doesn’t mean leaving the business. It means changing your relationship to your business. Instead of being involved in every decision, you build a team and find a way to trust your senior employees to take care of their individual areas of responsibility. Thanks for sharing.

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