Articles and Newsletters

Valuation Strategies article:
Do Not Be Too Quick To Discount A Discount For Controlling Interests

Valuation Strategies CoverThis was a case where the Estate’s business valuator merely went through the motions without considering the facts in the case. (The business valuation company was one of the country’s largest). By doing so they caused the estate to overpay estate tax by approximately 2.3 million dollars. The widow’s consultant, based merely on common sense, suspected that the companies were overvalued. You will see from the article that I prepared amended valuations and an amended estate tax return and secured an estate tax refund in the amount of $2,689,270 refund which included interest in the amount of $266,084. …
Continue reading Do Not Be Too Quick To Discount A Discount For Controlling Interests

August 4, 2017

Should you convert from a C corporation to an S corporation?

Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, you may consider converting to an S corporation. This isn’t necessarily a bad idea, but it’s important to know the ramifications involved. Similarities and differences S and C corporations use many of the same recordkeeping practices. Both types … Continue reading Should you convert from a C corporation to an S corporation?

Cool down with a dip into your tax records

In many parts of the country, the dog days of summer are a good time to stay inside. If you’re looking for a practical activity while you beat the heat, consider organizing your tax records. Granted, it may not be as exhilarating as jumping off the high dive, but a dip into these important documents … Continue reading Cool down with a dip into your tax records

IRS permits high-earner Roth IRA rollover opportunity

Are you a highly compensated employee (HCE) approaching retirement? If so, and you have a 401(k), you should consider a potentially useful tax-efficient IRA rollover technique. The IRS has specific rules about how participants such as you can allocate accumulated 401(k) plan assets based on pretax and after-tax employee contributions between standard IRAs and Roth … Continue reading IRS permits high-earner Roth IRA rollover opportunity

Shifting capital gains to your children

If you’re an investor looking to save tax dollars, your kids might be able to help you out. Giving appreciated stock or other investments to your children can minimize the impact of capital gains taxes. For this strategy to work best, however, your child must not be subject to the “kiddie tax.” This tax applies … Continue reading Shifting capital gains to your children

July 4, 2017

Why you should (or shouldn’t) pursue an acquisition

Like so many aspects of the national and global economies, merger and acquisition (M&A) activity tends to wax and wane. Nonetheless, billions of dollars continue to change hands annually, and an acquisition can be a great way to grow a business. So if one of these deals comes your way, it’s important to carefully consider … Continue reading Why you should (or shouldn’t) pursue an acquisition

Leasing property to your business might trigger undesirable tax consequences

If you own property and a business, there’s an obvious temptation to lease that property to the business. Such an arrangement can make sense from many perspectives. You’re no doubt familiar with the property and its advantages to your company; the deal could be carried out quickly; and the money changing hands would stay between … Continue reading Leasing property to your business might trigger undesirable tax consequences

Which type of mortgage loan meets your needs?

Few purchases during your lifetime will be as expensive as buying a home. Whether it’s your primary residence, a vacation home or an investment property, how you choose to pay for it can have a significant impact on your financial situation over time. If you’re considering a mortgage loan, understanding the main categories of mortgages … Continue reading Which type of mortgage loan meets your needs?

Know your tax hand when it comes to gambling

A royal flush can be quite a rush. But the IRS casts a wide net when defining gambling income. It includes winnings from casinos, horse races, lotteries and raffles, as well as any cash or prizes (appraised at fair market value) from contests. If you participate in any of these activities, you must report such … Continue reading Know your tax hand when it comes to gambling

Tax calendar – Third Quarter

July 17 — If the monthly deposit rule applies, employers must deposit the tax for payments in June for Social Security, Medicare, withheld income tax and nonpayroll withholding. July 31 — If you have employees, a federal unemployment tax (FUTA) deposit is due if the FUTA liability through June exceeds $500. The second quarter Form 941 (“Employer’s … Continue reading Tax calendar – Third Quarter

June 4, 2017

In down years, NOL rules can offer tax relief

From time to time, a business may find that its operating expenses and other deductions for a particular year exceed its income. This is known as incurring a net operating loss (NOL). In such cases, companies (or their owners) may be able to snatch some tax relief from this revenue defeat. Under the Internal Revenue … Continue reading In down years, NOL rules can offer tax relief

Asking the right questions about long-term care insurance

Like most people, as you age into your 40s and 50s, you may wonder what the future holds for your health and well-being. Will you be as sharp mentally and robust physically as you are right now? Could a serious medical condition arise in your future that might prevent you from performing routine daily tasks? Unfortunately, … Continue reading Asking the right questions about long-term care insurance

Renting out your vacation home? Anticipate the tax impact

When buying a vacation home, the primary objective is usually to provide a place for many years of happy memories. But you might also view the property as an income-producing investment and choose to rent it out when you’re not using it. Let’s take a look at how the IRS generally treats income and expenses … Continue reading Renting out your vacation home? Anticipate the tax impact

Thoughts and musings on family budgeting

Simplicity is the key to a successful family budget. But every budget needs to cover all necessary items. To find the right balance, your budget should address two distinct facets of your family members’ lives: the near term and the long term. In the near term, your budget should encompass the primary, day-to-day items that … Continue reading Thoughts and musings on family budgeting

May 26, 2017

Reviewing the innocent spouse relief rules

Married couples don’t always agree — and taxes are no exception. In certain cases, an “innocent” spouse can apply for relief from the responsibility of paying tax, interest and penalties arising from a spouse’s (or former spouse’s) improperly handled tax return. Although it isn’t easy to qualify, potentially affected taxpayers should review the rules. Applicants … Continue reading Reviewing the innocent spouse relief rules

Watch out for IRD issues when inheriting money

Once a relatively obscure concept, income in respect of a decedent (IRD) can create a surprisingly high tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there are ways to minimize or even eliminate the IRD tax bite. How it works Most inherited property is free … Continue reading Watch out for IRD issues when inheriting money

Viatical settlements: A funding mechanism for medical costs

Someone who’s terminally or chronically ill may lack the funds to cover significant medical costs. Although insurance policies have historically been held for the death benefits, it may be possible to sell a policy to a viatical settlement provider. This way, the individual can secure much-needed and generally tax-free cash while still alive. Buyers and … Continue reading Viatical settlements: A funding mechanism for medical costs

Could a cost segregation study save your company taxes?

If your business has acquired, constructed or substantially improved a building recently, consider a cost segregation study. One of these studies can enable you to identify building costs that are properly allocable to tangible personal property rather than real property. And this may allow you to accelerate depreciation deductions, reducing taxes and boosting cash flow. … Continue reading Could a cost segregation study save your company taxes?

April 29, 2017

5 growth strategies for today’s businesses

It’s probably safe to say that nearly every business owner wants his or her company to grow. The question is: How? As you ponder your company’s ideal strategic direction, here are five common business growth strategies to consider: Creating and delivering new products and services. This is probably the most obvious growth strategy, but that … Continue reading 5 growth strategies for today’s businesses

April 26, 2017

Tax calendar

April 18 — Besides being the last day to file (or extend) your 2016 personal return and pay any taxes due, 2017 first quarter estimated tax payments for individuals, trusts and calendar-year corporations are due today. So are 2016 returns for trusts and calendar-year estates and C corporations, plus any final contribution you plan to … Continue reading Tax calendar

So you just filed your taxes — could an audit be next?

Like many people, you probably feel a great sense of relief wash over you after your tax return is completed and filed. Unfortunately, even professionally prepared and accurate returns may sometimes be subject to an IRS audit. The good news? Chances are slim that it will actually happen. Only a small percentage of returns go … Continue reading So you just filed your taxes — could an audit be next?

ABLE accounts can help support the disabled

The Achieving a Better Life Experience (ABLE) Act of 2014 created a tax-advantaged savings account for people who have a qualifying disability (or are blind) before age 26. Modeled after the well-known Section 529 college savings plan, ABLE accounts offer many benefits. But it’s important to understand their limitations. Tax and funding benefits Like Sec. … Continue reading ABLE accounts can help support the disabled

Reviewing your company’s buy-sell agreement

If you own a business and follow professional advice, you’ve likely established a buy-sell agreement in case you or a co-owner voluntarily or involuntarily leaves the company. Assuming this is true, remember that it’s not enough to draft an agreement and put it in a safe place. You need to review and perhaps revise the … Continue reading Reviewing your company’s buy-sell agreement

March 26, 2017

You’ve hit the jackpot! Now what?

When it comes to financial planning, most of us spend our time guarding against things that could go wrong. But what if something really good happens? Hitting the jackpot is obviously a nice problem to have. Yet an unexpected influx of cash can drive even savvy individuals to do regrettable things. Your first impulse upon … Continue reading You’ve hit the jackpot! Now what?

Identifying qualifying children for tax purposes

As you file your 2016 income tax return, you may be wondering whether you’re eligible for tax breaks related to a niece who lives with you, or perhaps a stepson who spends only part of the year in your home. It all depends on whether, for federal tax purposes, that person is your “qualifying child.” … Continue reading Identifying qualifying children for tax purposes

4 tips for donating artwork to charity

Individuals may want to donate artwork so it can be enjoyed by a wider audience or available for scholarly study or simply to make room for new artwork in their home. Here are four tips for donating artwork with an eye toward tax savings: Get an appraisal. Donations of artwork valued at over $5,000 require … Continue reading 4 tips for donating artwork to charity

Got nexus? Find out before operating in multiple states

For many years, business owners had to ask themselves one question when it came to facing taxation in another state: Do we have “nexus”? This term indicates a business presence in a given state that’s substantial enough to trigger the state’s tax rules and obligations. Well, the question still stands. And if you’re considering operating … Continue reading Got nexus? Find out before operating in multiple states

March 6, 2017

Welcome to our new website

We at SKMB are excited to welcome you to our new website, more information will be added in the coming months. Please check back for our monthly blogs and updates.

February 26, 2017

Phaseouts and reductions: A tax-filing reminder

As tax-filing season gets into full swing, there are many details to remember. One subject to keep in mind — especially if you’ve seen your income rise recently — is whether you’ll be able to reap the full value of tax breaks that you’ve claimed previously. What could change? If your adjusted gross income (AGI) … Continue reading Phaseouts and reductions: A tax-filing reminder

4 myths about managing your debt

Debt is a reality for many Americans. Median household debt was estimated at $2,300 as of May 2016, according to consumer information provider ValuePenguin. And debt isn’t limited to those earning lower incomes; households with a net worth of $500,000 and over had an estimated $8,139 in credit card debt, per the same source. Underestimating … Continue reading 4 myths about managing your debt

February 22, 2017

Facing the tax challenges of self-employment

Today’s technology makes self-employment easier than ever. But if you work for yourself, you’ll face some distinctive challenges when it comes to your taxes. Here are some important steps to take: Learn your liability. Self-employed individuals are liable for self-employment tax, which means they must pay both the employee and employer portions of FICA taxes. … Continue reading Facing the tax challenges of self-employment

February 21, 2017

Consider separating real estate assets from your business

Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as … Continue reading Consider separating real estate assets from your business

January 26, 2017

Tax calendar

January 17 Individual taxpayers’ final 2016 estimated tax payment is due. January 31 File 2016 Forms W-2 (“Wage and Tax Statement”) with the SSA and provide copies to your employees. File 2016 Forms 1099-MISC (“Miscellaneous Income”) reporting nonemployee compensation payments in box 7 with the IRS and provide copies to recipients. Most employers must file … Continue reading Tax calendar

Reviewing your company’s inventory options for best results

Robust cash flow is a must for virtually every kind of business. Yet an improperly or inadequately managed inventory system can drag down your revenues. It’s a good idea to regularly review your approach to inventory accounting. Reconsider your approach Generally, there are two primary inventory accounting methods for both tax accounting and financial accounting. … Continue reading Reviewing your company’s inventory options for best results

Need to sell real property? Try an installment sale

If your company owns real property, or you do so individually, you may not always be able to dispose of it as quickly as you’d like. One avenue for perhaps finding a buyer a little sooner is an installment sale. Benefits and risks An installment sale occurs when you transfer property in exchange for a … Continue reading Need to sell real property? Try an installment sale

Slight adjustments: COLA amounts for 2017 retirement plans

The IRS recently issued cost-of-living adjustments (or “COLAs”) for 2017. If, like most people, you’re funding a retirement plan, it’s a good idea to take a look at what’s changed and what hasn’t. Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans will remain the same at $18,000. Likewise, contributions to SIMPLEs stay unchanged at … Continue reading Slight adjustments: COLA amounts for 2017 retirement plans

DAFs bring an investment angle to charitable giving

If you’re planning to make significant charitable donations in the coming year, consider a donor-advised fund (DAF). These accounts allow you to take a charitable income tax deduction immediately, while deferring decisions about how much to give — and to whom — until the time is right. Account attributes A DAF is a tax-advantaged investment … Continue reading DAFs bring an investment angle to charitable giving