Are you a Real Estate Professional or Passive Investor?

 Determining whether you are a real estate professional or a passive investor can have significant tax implications. 

Real estate investment can often lead to significant tax savings due to depreciation and other deductions that are immediately incurred.  Individuals classified as real estate professionals can use losses from real estate activities to offset sources of income such as wages, active business income, or portfolio income.  However, these losses are treated as passive for individuals who cannot achieve real estate professional status.  These passive losses would generally only be able to be used to offset other passive income.  They could also be carried forward to future years if they are not able to be used currently.

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Combating Occupational Fraud and Abuse - Report Finds Big Problems for Businesses of All Sizes

The largest global study on occupational fraud, “2018 Report to the Nations on Occupational Fraud and Abuse,” was released last week by the Association of Certified Fraud Examiners (“ACFE”).  It outlines major fraud concerns for businesses worldwide, and particularly small businesses.

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The Rules Governing Net Operating Losses are Changing

The phrase “net operating loss” may bring about feelings of despair to a business person.  It may be the case that a business actually lost money in a given year and the owner reported a negative taxable income number on his/her tax return.  Net operating losses (NOLs) for tax purposes do not always mean negative business results.  In some cases, NOLs arise from accelerated tax deductions through depreciation, resulting in positive cash flow for the business, but a negative bottom line for tax purposes.  Regardless of how an NOL was generated, the rules governing their use are changing as a result of the TCJA.  We explore a few of the issues at play in this article:

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Why your Company Needs a Business Valuation

As consumers, we are constantly tasked with assigning value to different products/services we encounter on a daily basis.  Generally, we have a good sense of how valuable an item is and can make a purchasing decision without much effort.   Think about going grocery shopping, we quickly assign value to the food on the shelves and make a decision to put the item in our cart, or not.  

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How Small Business Owners Can Control Cost Management

Many business owners, particularly small business owners, have an array of responsibilities.  From ordering supplies and making coffee, to meeting with investors and monitoring costs, small business owners wear many hats on a daily basis.

One of our client’s biggest challenges is developing cost management strategies.  When every night, and every morning starts with a to-do list for the day it’s hard to monitor “cost creep.”  Small businesses may have a dedicated bookkeeper entering data, but they don’t typically have the time or background to analyze information and understand when and where your costs are rising.   However, business owners often struggle with the battle of hiring a full time Controller and/or CFO to manage both fixed and variable expenses, vs. taking on the responsibility themselves.

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