How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

Im an Owner/Operator of a small Pest Control business. My

This answer was rated:

I'm an Owner/Operator of a small Pest Control business. My wife is a Sr. Sales Executive for a large corporation. She does very well and we have decided that I will be shutting down my business to get away from the chemicals. She will be getting very large comission checks from now until May 2014. We would like to know if there are any tax implications if we shut my business down now, before Dec 31 2013 or should we wait until 2014.

Thanks,
Chris

Megan C :

Hello and welcome. My name is XXXXX XXXXX I will be happy to assist you today

Megan C :

The tax implications of shutting down your business is that you will no longer be able to write off business expenses related to that business.

Megan C :

I'm assuming you are a sole proprietorship.

Megan C :

Also, you may have gains on sales of assets that you own for the business as well.

Megan C :

We're so close to the end of the year, it doesn't really matter when you shut your business down.

Megan C :

Make sure that you mark your returns as "final" and that you wrap up any employment tax returns as final as well.

Customer: So if she is going to collect nearly 500k b/t now and April, it has no effect on whether we shut it down down or next May?
Megan C :

No, unless you are operating at a loss and would like to continue operating at a loss to reduce some of her income.

Customer: No, haven't been operating at a loss. Ok, thanks for your help.
Megan C :

You're welcome. Is there anything else that you need assistance with today?

Megan C :

If not, please rate me positive so that I may receive credit for assisting you today

Customer: Ok, thanks
Megan C :

You're welcome :-)

Megan C :

The rating feature is located along the bottom of your screen

Megan C and 4 other Finance Specialists are ready to help you