News

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

Share:
October 1, 2019

Is “bunching” medical expenses still feasible in 2019?

Some medical expenses may be tax deductible, but only if you itemize deductions and you have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) made bunching such expenses beneficial for some … Continue reading Is “bunching” medical expenses still feasible in 2019? October 1, 2019

Step carefully with loans betwixt a business and its owner

It’s common for owners of closely held businesses to transfer money into and out of the company. But it’s critical to make such transfers properly. If you don’t, you might hear from the IRS. Why loans are better When an owner withdraws funds from the company, the transfer can be characterized as compensation, a distribution … Continue reading Step carefully with loans betwixt a business and its owner September 6, 2019

The tax cost of divorce has risen for many

Are you divorced or in the process of divorcing? If so, it’s critical to understand how the Tax Cuts and Jobs Act (TCJA) has changed the tax treatment of alimony. Unfortunately, for many couples, the news isn’t good — the tax cost of divorce has risen. What’s changed? Under previous rules, a taxpayer who paid alimony was … Continue reading The tax cost of divorce has risen for many September 6, 2019

Double up on tax benefits by donating appreciated artwork

From a tax perspective, appreciated artwork can make one of the best charitable gifts. Generally, donating appreciated property is doubly beneficial because you can both enjoy a valuable tax deduction and avoid the capital gains taxes you’d owe if you sold the property. The extra benefit from donating artwork comes from the fact that the top long-term … Continue reading Double up on tax benefits by donating appreciated artwork September 6, 2019

How businesses can assess risk of worker misclassification

Classifying a worker as an independent contractor frees a business from its portion of payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. For these reasons, the federal government … Continue reading How businesses can assess risk of worker misclassification September 6, 2019

4 types of information you need to prepare for disaster

When you read the phrase “disaster prep,” you may envision bottled water and boarded-up windows. But information is also a critical asset to have following a natural or manmade catastrophe. Here are four specific types of information you need: Personal identification records. These documents will enable you to prove the identity of your family members, maintain … Continue reading 4 types of information you need to prepare for disaster August 1, 2019

Know a teacher? Tell ’em about this tax break!

When teachers are setting up their classrooms for the new school year, it’s common for them to pay for a portion of their classroom supplies out of pocket. A special tax break allows these educators to deduct some of their expenses. This educator expense deduction is especially important now due to some changes under the … Continue reading Know a teacher? Tell ’em about this tax break! August 1, 2019

Planning for the net investment income tax

Despite its name, the Tax Cuts and Jobs Act (TCJA) didn’t cut all types of taxes. It left several taxes unchanged, including the 3.8% tax on net investment income (NII) of high-income taxpayers. You’re potentially liable for the NII tax if your modified adjusted gross income (MAGI) exceeds $200,000 ($250,000 for joint filers and qualifying … Continue reading Planning for the net investment income tax August 1, 2019

Consider the flexibility of a self-directed IRA

Traditional and Roth IRAs can be relatively “safe” retirement-savings vehicles, depending on what they’re invested in. But a drawback is that they limit your investment choices. A self-directed IRA gives you more flexibility in your investment choices but comes with greater risk as well. Gaining more control A self-directed IRA is simply an IRA that … Continue reading Consider the flexibility of a self-directed IRA August 1, 2019

Tax document retention guidelines for small businesses

You may have breathed a sigh of relief after filing your 2018 income tax return (or requesting an extension). But is your office strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records? Or perhaps your computer desktop is filled with a multitude of digital tax-related … Continue reading Tax document retention guidelines for small businesses