Closing a profitable business for a tax write-off?

[Neilk]

Hi,

My boss who probably is a little schizo and ADD has started a new business venture and wants to close his old business where I work. We have positive cash flow and perhaps we don't make a great profit, but we aren't costing him anything either. The business has great potential but he's lost interest and wants to close it down.

The only potential reason I see for him closing it is to get some kind of tax write-off. He made some stupid decisions early on that cost him some money, but for the past couple of years, we have been profitable. Is it possible to close a profitable business and get a tax benefit? He plays loose with the books, so I am sure he can justify it to the IRS somehow.

I am just at a loss at why he's doing this, so the write off is the only thing that makes sense. The employees are thinking about continuing the business without him but we haven't figured out how yet.

P.S. If any hospital administrators are reading this, we can find you free money in your old claims! Lot's of it.

[VaSteve]

Surely there is some advantage to him for whatever reason - it's his business (in both senses). You appear to be looking for a way to justify your jobs to him.

I would kill for this opportunity.

You could do several things.... all quit and go across the street and start again from scratch. Pay him something for rights to use his equipment, etc. Are any of you leadership types? If not, find someone to help lead and you continue in the service aspect.

Good luck!