Archives for Newsletter and Updates

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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Qualifying business vehicle purchases may be eligible for Section 179 depreciation, 50% first-year bonus depreciation and regular depreciation deductions. Combined, these deductions can be substantial. But the favorable tax rules may not last. If you’re considering purchasing an SUV or other heavy vehicle for business, it could make sense to act before year end in case the rules are changed after Election Day. Favorable depreciation rules for business use of “heavy” SUVs, pickups and vans were locked in by the Protecting Americans from Tax Hikes (PATH) Act of 2015. By taking advantage of these rules, you may be able to
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Cybercriminals never seem to give up, and for good reason: Their chances of success make it worthwhile. A recent poll entitled “IT Threats and Data Breaches” found that 94% of companies reported experiencing some form of “external threat.” After spam, the most commonly reported cyberthreats were viruses, worms, spyware, phishing attacks and network intrusion. Although less common, corporate espionage was also reported by nearly one-fifth of survey respondents. As a result, a new industry — employee cybersecurity training — has sprouted up. While it’s true that there will always be employees who will click on anything, it’s still critical for
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Have you met with your tax adviser to plan for 2016? The tax year is almost half over, and several new and expanded tax-saving opportunities are available under recent legislation. Moreover, some tax breaks have been made permanent, adding certainty to a few of your tax planning strategies. Here are some ideas for individuals and small businesses to lower their tax obligations this year.   Numerous tax breaks have been retroactively expanded for 2015 and beyond — or, in some cases, been made permanent — under the Protecting Americans from Tax Hikes (PATH) Act of 2015. Now that the dust
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