Tax Updates
More to Business Valuation than Meets the Eye
Most business owners and attorneys know the basics of the business valuation process. For example, you might know that there are three approaches to value: the cost, market and income approaches. You might even know some of the methods that fall under these approaches, including the:Adjusted book value,Excess earnings, Guideline public company, Guideline transaction (merger and acquisition), Capitalization of…
Read MoreSmall Business Alert: Bankruptcy Debt Limits Soon Could Drop
Market uncertainties are causing some small businesses to struggle. If you’re among them and are considering filing for bankruptcy, you may need to act fast. A temporary change in the laws that determine which debtors are eligible for certain bankruptcy protections is scheduled to expire in June 2024. Unless Congress passes legislation to extend the higher…
Read MoreFive Rules That Open the Gates
Chances are, you’ve lost a sale that you thought was in the bag. It happens. The way to improve the odds of success is to learn and follow the five “rules of qualification.” These are so critical to successful salesmanship that some say for each rule you violate, your chances of closing the deal drops by…
Read MoreWhy Is the Valuation Date So Important?
It is common to think about which method a business valuation professional will use and whether discounts might apply when considering how the value of an asset will be determined. However, the valuation’s effective date is a critical factor that may not immediately come to mind. What’s the Big Deal?One of the main reasons an appraisal’s…
Read MoreMaking a Loan to a Family Member to Help with a Home Purchase
Interest rates on residential mortgage loans have increased significantly over the last few years. If your adult child or another family member needs a mortgage to buy a home, the interest expense may be unaffordable. Plus, skyrocketing home values and low inventories of for-sale properties in most parts of the country are presenting challenges to prospective…
Read MoreDeducting Pass-Through Business Losses
Many business ventures generate tax losses, especially in the first few years of operation or under adverse conditions. When can losses be deducted — and how much can you deduct in any given year? This article explains current limitations on the ability of individual taxpayers to deduct losses from pass-through business entities, including sole proprietorships, limited…
Read MoreWorking Capital: A Potential Valuation Sleeper
Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market approach,…
Read MoreHow to Avoid Tax Pitfalls when Making Corporate Loans to Shareholders
How to Avoid Tax Pitfalls when Making Corporate Loans to ShareholdersInterest rates have increased substantially over the last two years. While rates are still reasonable compared to historical levels, shareholders may decide to take out loans from their companies, rather than pay higher interest rates on bank loans. When doing so, it’s important to follow the…
Read MoreProtecting Your Privacy from Trigger Leads
Applying for a residential mortgage loan can be time-consuming and stressful. And nowadays, home buyers have another stress to contend with when applying for financing: They may be bombarded with unsolicited “trigger leads” from competing lenders — or scammers may try to access an applicant’s personal data. As a lender evaluates your loan application, it accesses…
Read MoreManage Risks When Terminating an Employee
Terminating or disciplining an employee is fraught with legal, compliance and safety issues. In the worst case scenario, violence can occur. Red Flags from the FBIThe FBI has published a handbook entitled Workplace Violence.In that publication, the agency notes that when employee violence occurs, there is a “chance that some warning sign will have reached the employer in…
Read More