January 17, 2019
1099 filing is here and as you may know, the IRS has many stipulations. Recently, they have increased penalties and stiffened filing requirements. If you fail to file a correct information return by the IRS deadline (and cannot show reasonable cause), you may be subject to penalties.
January 9, 2019
An important piece of the buy-sell agreement is the determination of the value of the business at the time the agreement is triggered. If a dispute arises, and an owner wants to sell her shares, it is imperative that all parties involved know how the business’ value is going to be calculated. The easiest answer to this is a simple formula. The buy-sell agreement can say that at the time the agreement is triggered, we take a multiple of prior year EBITDA and boom, we have our value.
December 26, 2018
Every business has a business owner and every business owner has a different path to their success. Leaving a lasting legacy is a highly valued goal of each business owner, and succession is how that will be accomplished.
December 17, 2018
Although it is easy to look at historical financial statements to get an idea of the value of a business, it is often helpful to take a closer look at many income and expense items. Normalizing adjustments often need to be made to determine the true historical and prospective earnings capacity. This blog looks at an example of where normalizing adjustments are generally made to a company’s income statement in the valuation process.
December 12, 2018
It was announced on December 11, 2018 that the Agriculture Improvement Act of 2018 (AIA) is through reconciliation between the House and the Senate. The bill removes “hemp” from the definition of “marihuana” under the Controlled Substance Act (CSA). This effectively makes the cultivation, processing, extraction, manufacture, and retail of hemp legal under Federal law.
November 27, 2018
A company’s revenue can significantly impact value. A deep dive into the details of the sales number on the P&L often provides some insight that will assist a potential buyer in determining how much the business is worth. This blog examines a few issues to be considered when examining the top line.
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.