Tax Updates

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…

Do you own a life insurance policy that’s no longer essential to your financial goals? You may have purchased a policy long ago, when your children were infants or before their college years. Now that you’re no longer raising a family, your focus has probably changed to your own future needs, which could include some form…

Are you contemplating some significant improvements to your home? Whether it’s adding a pool to assist with a medical condition, finishing a basement or installing energy-saving equipment, you may be in line for generous tax breaks under current law. Here are four potential building blocks.1. Mortgage Interest DeductionsIf you have a mortgage on your home, through…

If your company has a qualified retirement plan or you have set one up in self-employment — such as a 401(k), profit-sharing, or Keogh plan — the participants might be allowed to borrow from their accounts. (This option is not available for traditional IRAs, Roth IRAs, SEPs, or SIMPLE-IRAs.) In the right circumstances, taking out a plan loan can be a…

Starting up a business and wondering about how tax deductions will be handled? The most important thing to understand is that most expenses incurred before a business begins functioning cannot be deducted or amortized until the year when the business does become active.  Business Expense Basics Section 162 of the Internal Revenue Code allows current deductions for so-called ordinary…