Business Valuations. What is the Purpose?
Business Valuation assignments vary depending on the purpose. Therefore, it’s imperative to understand the purpose of the valuation before the process starts. Generally, the purpose will determine the Standard of Value, the methods used and the level of background and research needed. Valuations can be for a whole business, a factional interest or a certain [...]
2 Reasons to Sell Highly Appreciated Assets Before Year End
If you own highly appreciated assets you’ve held long term, it may make sense to recognize gains now rather than risk paying tax at a higher rate next year: 1. The 15% long-term capital gains rate is scheduled to return to 20%. 2. Higher-income taxpayers will be subject to a new 3.8% Medicare tax on some or [...]
Magic Eight Ball Predicts…..
On December 31, 2012, the Bush era tax cuts are due to expire. Income tax increases from the new health care legislation (Affordable Care Act) will begin in 2013 as well as other proposed tax law changes. Predictions on tax laws and legislation are difficult in most years, but in an election year are impossible! [...]
Do You Know Your KPIs?
What are KPIs? These letters stand for Key Performance Indicators. Basically they are specific measurements that tell you at a glance if your business is performing as planned and meeting specific targets. This morning I was sitting with a client whose sales volume is $120 million. Every time I meet with this client he pulls [...]
Amounts Distributed From S-Corporation can be “Return of Capital” Rather Than Salary
In a recent case the IRS attacked the unreasonably low salary paid to a shareholder from the S Corporation. Based on empirical evidence and professional judgment the expert for the IRS determined that out of total distributions paid to the shareholder from the S Corporation of $227,651 and $199,470 in 2002 and 2003, $91,000 [...]
