Don’t book stuff as assets. Expense everything. Depreciate nothing. Then there will be no recapture at the end.
Takes two sets of books, because to interest the seller, you sure do want to show assets. From: Ken Hohhof Sent: Sunday, December 20, 2020 10:20 AM To: 'AnimalFarm Microwave Users Group' Subject: Re: [AFMUG] WISP Broker The whole depreciation recapture thing confuses me. Virtually nobody will say that used radios and routers and stuff are worth more than their depreciated value. And the valuation by the buyer will usually be based on the customers and revenue, with the equipment being valued at pretty much zero. They may change it all out to whatever they use, or move the customers to their network. So if you sell your WISP for $1 million, do you say assign that value entirely to the equipment? That defies logic. So do you assign part of it to the equipment, and then pay depreciation recapture on the difference between that and the depreciated value? I don’t follow the logic that I buy some APs, put them on towers, replace them with new ones every 3-5 years, and spend a lot of effort growing a customer base and revenue, which results in my business being worth maybe more than I paid for those APs. Are they saying the value of the APs has appreciated, maybe to more than I paid for the equipment, because my business is profitable? These aren’t Beanie Babies that I bought as an investment and they appreciated in value and now I sell them for a net gain. This is more like a musician buys a guitar, works 20 years becoming a famous musician with a bunch of top selling albums, and is now worth millions, do you say it’s because the guitar appreciated in value? Because the guitar is the only hard asset the musician ever purchased, everything else was just hard work and maybe talent? From: AF <[email protected]> On Behalf Of Craig House Sent: Sunday, December 20, 2020 10:52 AM To: AnimalFarm Microwave Users Group <[email protected]> Subject: Re: [AFMUG] WISP Broker If you have the option to sell the stock of the company instead of the assets. That make the sale a capital gains tax. I think that only works if you are setup as a C corp or S corp though. Spread it out over a term if you trust the buyer to pay you off. That also reduces your income per year and spreads it out over a term . -------------------------------------------------------------------------------- From: "Matt Hoppes" <[email protected]> To: "AnimalFarm Microwave Users Group" <[email protected]> Sent: Sunday, December 20, 2020 10:26:44 AM Subject: Re: [AFMUG] WISP Broker So for any of you who have solid: How did you cushion taxes? If you got 600,000, 1 million or 2 million - that’s still going to be w huge tax hit. Also did you do anything for your employees? For example give them some of the sale proceeds? And if so did you just lump sum it or set something up to help them with money management and tax liability? On Dec 19, 2020, at 3:41 PM, Mike Hammett <[email protected]> wrote: Maybe I ought to call them before you do. ;-) ----- Mike Hammett Intelligent Computing Solutions Midwest Internet Exchange The Brothers WISP ------------------------------------------------------------------------------ From: "Nate Burke" <[email protected]> To: "AnimalFarm Microwave Users Group" <[email protected]> Sent: Friday, December 18, 2020 9:34:33 PM Subject: Re: [AFMUG] WISP Broker I just got a cold call yesterday, leaving a voicemail on almost every extension in the IVR, from a company wanting us to acquire one of their WISPS. CID came back as someone's personal name. Claimed to be from Wispbroker.com On 12/18/2020 8:42 PM, Steve Jones wrote: You selling? On Fri, Dec 18, 2020, 7:29 PM Matt Hoppes <[email protected]> wrote: Anyone in our industry that brokers sales and buys of ISPs? For anyone who has sold - how did you find your buyer? -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -------------------------------------------------------------------------------- -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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