Small Business

Business assets are things of value that are used in a business. The assets are of two types:
Tangible assets, Cash and Receivables, Inventory like business vehicles, equipment, supplies, and buildings.
Intangible assets, like goodwill copyrights, patents, and trademarks.

Depreciable assets such as buildings, land, machinery and equipment held more than one year are classified as (IRC) Section 1231 property.
The sale triggers a taxable event (gain or loss) that is reported on IRS Form 4797, Sale of Business Property, Part 1.

Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties.
However, livestock of different sexes are not like-kind properties.
Also, personal property used predominantly in the United States and personal property used predominantly outside the United States is not like-kind properties.
Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031.
If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

You may elect to report the sale on IRS Form 6252 which spreads the tax liability on the gain over the life of the installment period.
You may elect not to use the installment method if you want to report the entire profit in the current year of sale.

Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither has to buy or sell.
If parties with adverse interests place a value on property in an arm's-length transaction, that is strong evidence of FMV.
If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary.

Medical Savings Accounts (MSAs) are available to employees of small businesses and self-employed individuals if they participate in high-deductible health plans. The deductible limits and out-of-pocket limits in connection with these plans differ from those for HSAs.
For tax years beginning in 2012, the annual deductible for an MSA high-deductible health plan may not be less than $2,100 and not more than $3,150 for single coverage, and not less than $4,200 and not more than $6,300 for family coverage. Also, annual out-of-pocket expenses (exclusive of premiums) cannot exceed $4,200 for single coverage and $7,650 for family coverage.

The foreign earned income deduction rises to $97,600, an increase of $2,500 from the maximum deduction for tax year 2012.

The value of lodging is not taxable if as a condition of employement the employee must accept the lodging on the employer's business premises for the employer's convenience.
The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging.