GAAP Accounting Analysis
There are big changes to the General Accepted Accounting Rules (GAAP) during 2019. All leases must be reported as a liability. There are no "Off-Balance SSheet" transactions. How will these changes impact your business strategy?
The Sale Lease-Back Transaction Analysis
Many companies have a large amount of equity in real estate that is not reflected on the balance sheet. The sale-leaseback transaction may convert long-term assets that do not reflect the true equity into a short-term asset.
Section 1031 "Like-Kind Exchange" Analysis
Many times the 1031-exchange is not always the best strategy!
The "1031-exchange" potentially allows the deferment of capital gains, however, this strategy may only look at the disposition side of the transaction. Examining the impact of both the relinquished property and the replacement property is important.
Lease Versus Owning Analysis
Should you lease your real estate or own it? Well, it depends.
Many businesses have looked at the GAAP to make in making this decision. This should be considered, however, in 2019 all leases must be reported in one form or another as a liability. The after-tax cost to occupy model may be the best approach. The real question is how should a company deploy its capital.