[This article was written by Lizzie Weakley.]
Part of running a company is managing all of its assets. This includes physical assets. A good deal of the value of most companies is wrapped up in these physical assets. However, these vehicles, machines, equipment and more do not last forever. They depreciate over time. They succumb to wear and tear like anything else. At some point, you may want to unload some of these assets, but how do you do so? Below are a few strategies you can implement.
Donate Them to Charity
In some cases, you may be able to donate certain assets to charity. If you do so, your business may be able to claim a charitable contribution deduction. This is beneficial in two ways. You get to remove the assets your company no longer needs and you get to lessen your company’s tax burden at the same time. However, the law regarding these tax deductions is quite complex. Work with professionals to make sure your charitable giving will actually qualify for the deduction.
A second choice of course is to liquidate those assets by selling them out right. While you won’t get what your company paid for those items, getting some cash for those assets is better than nothing at all. However, selling those assets on your own piece by piece to individual buyers may be too difficult and not worth the time and effort required. Look for companies that can buy your assets outright. If you need to sell electrical equipment, look for a company that specializes in buying it.
Trade Them In
In other cases, you may be able to trade certain assets in instead of selling them for cash. For example, if your company has a fleet of trucks and some of those vehicles are getting old, you can certainly trade in those older trucks towards the purchase of new trucks to add to your fleet. This may also be the case for other kinds of equipment such as computers. Look to see if such a transaction is possible with the assets you want to unload.
Lastly, if other possibilities have been exhausted, you may consider just disposing of those assets. However, also consider if any of those assets can be recycled. Companies have a moral obligation to lessen their impact on the environment. Recycling is one way to do that.
Assets are like anything. They wear out over time and lose their usefulness. If you want to unload your old assets, consider the different ways you can do so. You may be able to get more for them than you would have first assumed.
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her three-year-old husky, Snowball.