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What can a valuation expert do for your succession plan?

| Business Briefs, Business Miscellaneous

Most business owners spend a lifetime building their businesses. And when it comes to succession, they face the difficult decision of whether to sell, dissolve or transfer the business to family members (or a nonfamily successor). Many complicated issues are involved, including how to divvy up business interests, allocate value and tackle complex tax issues. Thus, as you put together your succession plan, include not only your financial and legal advisors, but also a qualified valuation professional. Various Read more [...]
Brainstorming businessman in boardroom

Envision your advisory board before you form it

| Business Briefs

Many companies reach a point in their development where they could benefit from an advisory board. It’s all too easy in today’s complex business world to get caught up in an “echo chamber” of ideas and perspectives that only originate internally. For many business owners, an understandable first question about the concept is: What should my advisory board look like? To find an answer, start by envisioning the ideal size and composition of your company’s board in terms of skill sets and Read more [...]
Do you need to file a 2016 gift tax return by April 18

Do you need to file a 2016 gift tax return by April 18?

| Tax Briefs

Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to file a gift tax return. Some transfers require a return even if you don’t owe tax. And sometimes it’s desirable to file a return even if it isn’t required. When Read more [...]
The investment interest expense deduction

The investment interest expense deduction – Less beneficial than you might think

| Tax Briefs

Investment interest — interest on debt used to buy assets held for investment, such as margin debt used to buy securities — generally is deductible for both regular tax and alternative minimum tax purposes. But special rules apply that can make this itemized deduction less beneficial than you might think. Limits on the deduction First, you can’t deduct interest you incurred to produce tax-exempt income. For example, if you borrow money to invest in municipal bonds, which are exempt from Read more [...]
What you need to know about

What you need to know about the tax treatment of ISOs

| Tax Briefs

Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. However, complex tax rules apply to this type of compensation. Current tax treatment ISOs must comply with many rules but receive tax-favored treatment: You owe no tax when ISOs are granted. You owe no regular income tax when you exercise Read more [...]
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ESOP repurchase obligations are real

| Business Miscellaneous

By Mike Staton     All too often companies setting up an ESOP (Employee Stock Ownership Plan) concentrate on the legal documents, projections and banking arrangements without considering all of the long-term obligations. Not only do you have the cash flow requirements of the outside loan with the bank or the selling stockholders, you have future Repurchase Obligations to consider in an ESOP. Repurchase obligations are not required by GAAP to be recorded on the company’s financial statements, Read more [...]
The manufacturers deduction isn't just for manufacturers

The “manufacturers’ deduction” isn’t just for manufacturers

| Tax Briefs

The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. Sec. 199 deduction 101 The Sec. 199 deduction, also called the “domestic production activities deduction,” is 9% of the lesser of qualified production activities income or taxable income. The deduction is also limited to 50% Read more [...]