November 14, 2018
One of the first pieces of information that should be determined in any valuation engagement is the standard of value. The standard of value provides a roadmap for the valuator to reach a conclusion of value. Oftentimes, the standard of value is dictated by the purpose of the engagement. The three primary standards of value are explored below.
November 8, 2018
Beginning with applications for 2019, taxpayers must apply separately for the Partial Tax Exemption for Real Property of Senior Citizens (the senior citizens or aged exemption) and the “Enhanced school tax relief program (STAR) exemption.
November 5, 2018
Prior to the Tax Cuts and Jobs Act (TCJA), businesses could deduct up to 50% of total meals and entertainment expenses incurred in connection with a bona fide business purpose. The 2017 TCJA uprooted this deduction by specifically prohibiting any deductions for expenses considered to be entertainment, amusement, or recreation (“entertainment expenses”). While it was made clear that entertainment expenses would no longer be deductible, the act lacked clarification related to the deductibility of business meals, until now.
October 29, 2018
On August 17th, the IRS issued a private letter ruling that approved an amendment to a company’s 401(k) plan to allow the employer to make 401(k) contributions on behalf of employees who are actively paying off student loans.
October 26, 2018
The Market Approach is commonly used by business valuation experts to determine value. The basis for the approach is similar to residential real estate appraisers using “comps” to determine a home’s value. This blog post will look at how the Market Approach is used to value businesses as well as the strengths and potential shortcomings of the approach.
October 22, 2018
The Tax Cuts and Jobs Act (“TCJA”) passed late in 2017 introduced a new deduction for business owners. Individuals who own and/or operate qualified business activities can deduct up to 20% of their qualified business income.
October 17, 2018
When comparing two companies, it may seem very logical that a business that makes more money is worth more than another business with smaller earnings. However, business’ are often exceedingly complex and need to be examined in greater detail.
October 8, 2018
Succession planning is a key factor when you are a business owner. At some point as a business owner you will have to pass down the legacy. This task might be easier for some than others, but each owner will have to face the inevitable. Starting this plan early on into your business career will help make for an easier transition when the time eventually comes. It will also help assess the short and long-term development needs of the company.
October 1, 2018
Part of the Bipartisan Budget Act of 2018 (BBA) included issuing Form 1040SR, which would be made available to any individual who is 65 years or older. In the past tax compliance has not been easy for these individuals. Seniors age 65 and older are not eligible to use Form 1040EZ. They could file Form 1040A, but may not find relief in filing this as there is a $100,000 cap on taxable income and there are prohibitions on itemized deductions from the enactment of the Tax Cuts and Jobs Act. You may be asking yourself, what is Form 1040SR? The Form 1040SR is similar to Form 1040EZ, except it is exclusive for seniors 65 years and older. Those taxpayers can still use other forms however, the Form 1040SR is just another option.
September 18, 2018
With the tax changes that are now in place for 2018, the IRS is encouraging taxpayers to review their individual tax situations and to check and adjust their withholding, if needed. In other words, “a paycheck checkup.” Checking and adjusting withholding can help prevent an unexpected tax bill this upcoming April.