Posts by Alegria Network Administrator

If you want the truth about your company, ask people on the way out. Exit interviews can deliver important inside information. The way departing employees view your organization might be the way things really are. Below is an exit interview questionnaire you can print and give to staff members who are leaving. But first, a few points:…

Most closely held business owners want to know the value of their investments, especially if they are going to sell or gift shares to family members or charities. Valuing a private business is a complex undertaking, however. The only sure way to appraise a business interest is to hire a valuation professional who understands the current marketplace and the…

Different states have different rules for determining whether a trust is a “resident” for income tax purposes. State tax liability can depend on the location of settlors, trustees, or beneficiaries. In some situations, a trust could be liable for taxes in multiple states. Fortunately, you may be able to take certain steps to reduce the taxation…

Merger and acquisition (M&A) activity is widely expected to pick up this year, after a lull in 2022. Amid economic uncertainty, earnouts are likely to play a big role in many deals. The structuring of such transactions could have significant tax implications that affect the ultimate value for both parties. The BasicsEarnout provisions generally arise when…

The excess earnings method was originally created to compensate wineries and distilleries during Prohibition. Business valuation experts often criticize this method, calling it ambiguous, over-simplified or outdated. But it’s still used in some jurisdictions as a way to value small businesses and professional practices, especially in a divorce setting. IRS DefinitionThe excess earnings method is the subject of IRS Revenue…

The U.S. Department of Labor’s Wage and Hour Division (WHD) recently issued news releases announcing actions taken against five companies that were investigated for various violations of laws and regulations. The cases involve violations of wages, overtime, tip, meal break, recordkeeping, temporary visa, and other rules. Case 1: Specialty Grocery Store Must Pay Workers OvertimeAn investigation…

If you rent out a second home — or part of your main residence — you may be unclear about whether you need to pay self-employment (SE) tax on your net rental income. In fact, the federal tax rules on this topic are somewhat confusing. The IRS recently published guidance on this issue that may apply…

The Tax Cuts and Jobs Act (TCJA) limits itemized deductions for state and local tax (SALT) payments for 2018 through 2025. This unfavorable tax law change is especially unpopular in states with high income or property taxes (or both). The limitation remains in effect, despite repeated calls to repeal it. (See “How Will the SALT Rules…