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. …
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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