• Increased Penalties and Stiffened Filing Requirements for 2018 Information Returns

    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. 

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  • Is a Formula the Formula for Success in Buy-Sell Agreements?

    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. 

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  • Importance of Succession Planning in the Construction Industry

    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.

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  • The New Normal

    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.

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  • Hemp is (almost) Legal

    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.

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  • How the Top Line Impacts Value

    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.

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  • The Standard is the Standard

    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. 

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  • Changes Coming to the Senior Citizens STAR Exemption and Enhanced STAR Exemption Programs

    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. 

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  • IRS Allows Meals to Continue to be Deductible

    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.

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  • IRS Ruling Allows Employer 401(k) Match for Student Loan Payments

    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.

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