4Thought Blog

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New Guidance on Taking Advantage of Expanded Bonus Depreciation

Posted by Concannon Miller on Tue, Aug 21, 2018

Federal tax reform through the Tax Cuts and Jobs Act significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy to claim bonus depreciation deductions.

Although the regs are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017, for tax years ending on or after September 28, 2017.

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Topics: McDonald's management, Business tax planning, Manufacturing, Construction & Real Estate Development, 2017 Federal Tax Reform

Tax Reform Mostly Increases Depreciation Opportunities for McDonald’s Franchisees

Posted by Steve Bickert on Tue, Jun 26, 2018

Federal tax reform through the Tax Cuts and Jobs Act provides many new tax benefits to McDonald’s Owner/Operators, including some major depreciation changes, most of which are beneficial, as we interpret the tax law changes.

Under the new act, Bonus Depreciation is increased from 50% to 100% for qualifying property. The new provision also expands Bonus Depreciation to include both new and used qualifying assets, assuming they are acquired under an arms-length transaction. Thus, in a sales between operators transaction, the equipment allocation is now eligible for Bonus Depreciation.

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Topics: McDonald's management, 2017 Federal Tax Reform

Tax Reform & McDonald’s Franchisees: The Benefits

Posted by Tony Bragano on Thu, Apr 12, 2018

The Tax Cuts and Jobs Act is massive, but here are a few changes that may benefit McDonald’s franchisees.

Qualified Business Income Deduction

The new 20% Qualified Business Income Deduction (QBI) is one of the biggest tax benefits for small business owners including McDonald’s franchisees in more than 60 years.

Here are the basics:

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Topics: McDonald's management, 2017 Federal Tax Reform

New Federal Budget Agreement Brings Additional Tax Changes

Posted by Concannon Miller on Thu, Feb 15, 2018

money--capitol.jpgThe ink on the Tax Cuts and Jobs Act (TCJA), which swept in a tidal wave of changes to federal tax rules, had been dry for only seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), which President Trump signed into law on February 9, 2018, contains several tax-related provisions that could reduce the amounts some taxpayers owe for the 2017 tax year.

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Topics: McDonald's management, Business tax planning, Individual tax planning

New Tax Law Offers Favorable Tax Breaks to Businesses, Business Owners

Posted by Concannon Miller on Tue, Jan 2, 2018

The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses.

Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions.

Here are the most important changes in the new law that will affect businesses and their owners.

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Topics: McDonald's management, Business tax planning, Manufacturing, 2017 Federal Tax Reform

Business Equipment Tax Breaks Enhanced for McDonald’s Franchisees, Manufacturers, More

Posted by Concannon Miller on Thu, Dec 28, 2017

If your business is buying new equipment in 2018, you’ll be able to benefit in several ways under the new tax reform law, commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), which was signed into law by President Trump on December 22. You even may be able to take advantage of some of the enhancements on your 2017 tax return!

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Topics: McDonald's management, Business tax planning, Manufacturing, 2017 Federal Tax Reform

Your McDonald’s Franchise Investment/Re-Investment – Will It Really Pay Off?

Posted by Ryan Moore on Tue, Apr 11, 2017

The business of owning and operating a McDonald’s restaurant franchise is without a doubt, capital intensive. From the hefty initial investment to the steady stream of re-investments to keep your restaurant operating at peak performance, the amount of capital poured into your business is substantial.

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Topics: McDonald's management

How Much is My McDonald’s Restaurant Worth? A Valuation Primer

Posted by Ryan Moore on Tue, Mar 14, 2017

Whether you’re looking to buy a McDonald’s restaurant, sell a restaurant, gift some ownership to a Next Gen, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.

There is no black and white formula for determining what a McDonald’s franchise is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.

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Topics: McDonald's management, Business Valuation

Philadelphia’s Soda Tax – What McDonald’s Franchisees Need to Know

Posted by Concannon Miller on Thu, Feb 23, 2017

The City of Philadelphia’s Sugar Sweetened Beverage Tax became effective January 1, 2017. This is the first “soda” tax passed by a major city. The City passed the tax, estimated to generate over $90 million annually, in an effort to provide additional funding to schools, parks, recreation centers, and libraries.

The new law defines two groups that will be impacted from the tax. Specifically Distributors and Dealers. A Distributor is any person who supplies sugar-sweetened beverage to a dealer. A Dealer is any person engaged in the business of selling sugar-sweetened beverage for retail sale in the City, including but not limited to restaurants, retail stores, street vendors, owners and operators of vending machines, and distributors who engage in retail sales.

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Topics: McDonald's management

How McDonald’s Franchisees Can Best Manage Risk

Posted by Ryan Moore on Thu, Jan 12, 2017

The term risk management is one that can be found with increasing frequency these days, both on television and in print. It’s not necessarily fodder for lively dinner conversation, but the timing of when you get to enjoy that next expensive steak could very well depend on how well versed you are on the topic of risk.

Put simply, risk management is the process of identification, analysis, and acceptance of uncertainty in business decisions. The primary objective of risk management is to provide the assurance that uncertainty does not interfere or prevent one from achieving their business goals. Risks can come from various sources including uncertainty in financial markets, threats from operational failures, legal liabilities, credit risk, accidents, natural causes and disasters, ever increasing competition, or other uncertain or unpredictable events.

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Topics: McDonald's management

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