Tax Updates

Every tax season, business owners must familiarize themselves with tax law changes that went into effect for that tax year. Fortunately, businesses don’t have to contend with sweeping changes for 2022. But there are three major ones that could affect business taxpayers as they file federal income tax returns this year for 2022. 1. Reduced Cap…

In a statement posted to its website on February 3, 2023, the IRS asked certain taxpayers to temporarily hold off on filing their 2022 returns until it could issue guidance on how to treat special tax refunds and payments made by approximately 20 states in 2022. The IRS published additional guidance to resolve this issue a…

Every company has its strengths and weaknesses, yet some business owners spend so much time trying to eliminate the weaknesses that they never capitalize on their strengths. Take the time to identify your company’s unique selling proposition — what makes you different from the competition? Your competitive edge might be something as complex as offering customized, state-of-the-art technological…

Despite the popularity of e-marketing, direct mail still works for many companies. How well it works depends on a number of variables. It’s a game of percentages. Here are six tips to help improve your company’s odds: 1. Direct is the operative word.A key advantage of direct mail versus traditional advertising to a mass audience is…

The discount for lack of marketability (DLOM) is one of the most contentious issues in business valuation. One reason is that the DLOM can lower a business interest’s value by as much as 35% or more. Another reason is that the DLOM varies significantly, depending on the rights and restrictions attached to the business interest. Here’s…

A comprehensive benchmarking study can provide your business with a healthy start to the new year. By comparing your business’s financial performance to competitors — or even itself over time — benchmarking can help identify trends, value drivers and potential risks. Here’s a look at the components of a comprehensive benchmarking study and how various factors affect…

Business losses can happen, whether you’re operating a new company that hasn’t yet earned a profit or a mature business that’s been squeezed by today’s volatile economy. While no one likes to lose money, the federal tax code helps soften the blow by allowing businesses to apply their losses to offset taxable income in future years,…

Did you know that business valuators offer two types of appraisal services? Formal valuations are the most common service valuators provide, requiring significant time and in-depth analyses. But sometimes a less formal “calculation” of value will suffice — just don’t expect it to stand up to outside scrutiny. Calculations are only as reliable as the assumptions and scope limitations…