Archives for Newsletter and Updates

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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This election season, Republicans and Democrats don’t seem to agree on much. But 95% of voters — regardless of which U.S. presidential candidate they favor — support American-made products. The vast majority of Americans also favor training programs, trade enforcement, tax incentives and a national strategy to support U.S. manufacturing, according to the Alliance for American Manufacturing. This organization is a not-for-profit, nonpartisan partnership of leading domestic manufacturers and the United Steelworkers labor union. With the momentum that’s building behind the Made-in-America label, it may be time for your business to rethink its supply chain partners and marketing strategy. Assessing
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A change in the rules governing overtime has been coming for two years, with a sneak preview of proposed modifications last year. But on May 18, the Department of Labor (DOL) came out with its new final rules, which take effect on December 1, 2016. The rules will significantly raise the salary level used to determine whether employees are eligible for overtime and will affect more than 4 million salaried employees, according to the DOL. The Obama administration’s goal was to reset the income threshold to the point it would have reached, with period inflation adjustments, had it not been
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Many business owners fail to follow the strict tax rules for substantiating vehicle expenses. But if your business is audited, the IRS will most likely ask for mileage logs if you deducted vehicle expenses — and it tends to be especially critical of the amount deducted if you’re self employed or you employ relatives. While the basics seem simple, there are numerous exceptions. Mileage Logs Taxpayers can deduct actual vehicle expenses, including depreciation, gas, maintenance, insurance and other vehicle operating costs. Or they can use the standard mileage method, which allows a deduction based on the standard rate for each
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