Archives for Newsletter and Updates

It can be a hard choice to make, but successful companies often have to make strategic decisions to “fix it or exit.” In other words, every element of a business must earn its keep, be fixed or let go. Companies must have a growth and profitability mentality that prompts them to maintain their winning profit centers and dump the marginal earners and losers. Many businesses tend to avoid taking the time to identify their key profit centers and eliminate marginal products or services. During good economic times when sales are booming, problems tend to go unnoticed. But when business turns
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For years, people have questioned the long-term viability of the Social Security system. In June, the Social Security Board of Trustees released its annual report on the long-term financial status of the Social Security Trust Funds. It projects that the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds will become depleted in 2034. Additionally, the Disability Insurance Trust Fund will become depleted in 2023. More generally, people approaching retirement age often have other questions about benefits they may be eligible to receive from the Social Security Administration (SSA). Here are the answers to
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Data protection has become an increasing challenge at many organizations. Events such as the loss or theft of customer records, the accidental forwarding of sensitive e-mails, and violations of corporate policies have pushed information-loss prevention to the top of the agenda. Critical issues facing most businesses include: Ensuring regulatory compliance. Enforcing appropriate data use and access policies. Protecting intellectual property. The consequences can be enormous, and include: Fines. Disclosure of trade secrets. Loss of customers and their trust. Lawsuits. Charges of fraud. Regulatory compliance alone is a particularly critical issue. There are complex laws governing the collection, storage and use
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Many small businesses prepare — and regularly update — a strategic plan, but many overlook this important task. Whether your business falls into the “have” or a “have-not” category, The Anatomy of a Strategic Plan First, let’s review some basics about strategic planning. Fundamentally, it is an activity that helps: Set priorities; Focus energy and resources; Strengthen operations; Ensure that employees and management work toward common goals; Establish agreement around intended outcomes; and Adjust direction as the business environment changes. The best way to start is to skip to the ultimate goal: What do you want your business to accomplish? This amounts to
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Few people enjoy giving money to the IRS, but some types of taxes are viewed more unfavorably than others. Here are three worthy candidates vying for the title of most-hated tax. Penalty Tax on Individuals without Health Insurance As you probably know, the Affordable Care Act (ACA) imposes a penalty on individuals who fail to have so-called minimum essential health insurance coverage for any month of the year. This requirement is commonly called the “individual mandate,” and individuals must pay a penalty for noncompliance with the mandate. You may be exempt from paying the penalty, however, if you fit into
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Are you feeling charitable? High-net–worth individuals over age 70 1/2 can replace taxable required minimum distributions from their IRAs with qualified charitable distributions. In other words, instead of paying taxes on distributions, you can donate money to your favorite IRS-approved charity and avoid those taxes. Here’s more on how this strategy works and guidelines for whom it might benefit. You can make cash donations to IRS-approved charities out of your IRA using so-called “qualified charitable distributions” (QCDs). This strategy may be advantageous for high-net-worth individuals who have reached age 70 1/2. It expired at the end of 2014, but QCDs were
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For family business owners, estate planning can be a challenge. Often, most if not all of their wealth is tied up in their companies, which creates a conflict between the desire to transfer ownership to the next generation and the desire to stay in control. One potential solution is to recapitalize the business into voting and nonvoting shares. It allows you to separate ownership succession from management succession. Reaping the Benefits From an estate planning perspective, the sooner you transfer ownership of your business to the next generation, the better. That way, future appreciation and income are removed from your
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In today’s environment, some business owners may head back to the classroom to pursue work-related education. They may even decide to pursue a degree, such as a Masters in Business Administration. When can you deduct education costs as work-related business expenses? This article explains the rules. If you’re headed back in the classroom, or thinking about it, you might be wondering if the tuition expenses are tax deductible. To be considered work-related education for business deduction purposes, the training must meet one or both of the following standards: Standard No. 1: The education is expressly required by applicable law or
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When it comes to structuring a successful M&A transaction, existing trademarks play an important role for both parties involved. Valuing trademark and creating a strategic vision for them can lead to success down the line. Click “Full Article” for details about the importance of trademark due diligence. When companies merge in the 21st Century, it is often to add value through intellectual capital rather than adding additional office space or factories. This is due to the fact that, increasingly, intellectual assets can be worth more than fixed assets when it comes to a company’s value. Consequently, it is no surprise
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The IRS recently published amended final regulations that will allow designated Roth account owners to tailor the tax results from their distributions.  This gives owners of the accounts greater flexibility in personal tax planning.  Here are the details, including an example of how the new guidance can lower taxes on distributions from designated Roth accounts. Does your employer offer a 401(k), 403(b) or governmental 457 plan? If so, you may be able to set up a designated Roth account through your company’s plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of
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