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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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February 3, 2020

The TCJA effect: Qualified residence interest

The Tax Cuts and Jobs Act (TCJA) made a significant impact — both directly and indirectly — on the deductibility of various types of interest expense for individuals. One area affected is qualified residence interest. Two ways about it The TCJA affects interest on residential loans in two ways. First, by nearly doubling the standard … Continue reading The TCJA effect: Qualified residence interest February 3, 2020

Careful tax planning required for incentive stock options

Incentive stock options (ISOs) are a popular form of compensation for executives and other key employees. They allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the ISO grant date. If the stock appreciates, you can buy shares at a … Continue reading Careful tax planning required for incentive stock options February 3, 2020

Own a pass-through entity? Beware the Ides of March

“Beware the Ides of March.” Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March — March 15 — is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history Until the … Continue reading Own a pass-through entity? Beware the Ides of March February 3, 2020

Accounting for the near and the long term in a family budget

A wise person once said, “Simplicity is the key to a family budget.” (He or she may or may not have been an accountant.) However, it also needs to be comprehensive enough to cover all the necessary items. To find the right balance, a budget should cover two distinct facets of family members’ lives: the … Continue reading Accounting for the near and the long term in a family budget January 8, 2020

Determining an employee’s “home” for reimbursement purposes

Despite the prevalence of Web-based meetings, many of today’s businesses still have plenty of employees who travel. If you still have sales staff or other workers out on the road, and you’re reimbursing them on a tax-free basis for their travel expenses, it’s important for you as the employer to stay up to date on … Continue reading Determining an employee’s “home” for reimbursement purposes January 8, 2020

What to do about fraudulent credit or debit card charges

It’s an awful feeling to learn that someone has used your credit or debit card to make fraudulent charges. Whether you’re liable typically depends on the type of card, whether you still possess the card and when you alert the issuer. Credit cards If your card is lost or stolen and you report it to … Continue reading What to do about fraudulent credit or debit card charges January 8, 2020

Every business owner needs an exit strategy

As a business owner, you have to keep your eye on your company’s income and expenses and applicable tax breaks. But you also must look out for your own financial future. And that includes creating an exit strategy. Buy-sell agreement When a business has more than one owner, a buy-sell agreement can be a powerful … Continue reading Every business owner needs an exit strategy January 8, 2020

Tax calendar

January 15 — Individual taxpayers’ final 2019 estimated tax payment is due. January 31 — File 2019 Forms W-2 (“Wage and Tax Statement”) with the Social Security Administration and provide copies to your employees. File 2019 Forms 1099-MISC (“Miscellaneous Income”) reporting nonemployee compensation payments with the IRS and provide copies to recipients. Most employers must file Form … Continue reading Tax calendar January 8, 2020

Do you know your tax bracket?

Although the Tax Cuts and Jobs Act (TCJA) generally reduced individual tax rates through 2025, there’s no guarantee you’ll receive a refund or lower tax bill. Some taxpayers have actually seen their taxes go up because of reductions or eliminations of certain tax breaks. For this reason, it’s important to know your bracket. Some single … Continue reading Do you know your tax bracket? December 3, 2019

Asset protection is just as important as tax planning

Like many financially savvy individuals, you’re probably already thinking about filing your tax return next year. But don’t overlook another critical and equally important aspect of financial planning: asset protection. Here are some fundamental strategies to consider. Buy liability insurance Liability insurance policies help protect your assets from the financial risks associated with personal liability … Continue reading Asset protection is just as important as tax planning