When Is Service Business Income Eligible for the New QBI Deduction?
The IRS has issued much-anticipated regulations regarding the new deduction of up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction is a major piece of the Tax Cuts and Jobs Act signed into law in December 2017. The deduction will...
New Law, New Limit on Deductions for Business Interest Expense
The Tax Cuts and Jobs Act (TCJA) sets a new limit on deductions for business interest expense. This is a permanent change for tax years beginning in 2018 with no end date. Will your Maine business be affected? Here’s what you need to know. How Have the Rules Changed?...
Employers: Consider Telemedicine and Make Sure Employees Use It
The ways medical professionals and patients interact continues to change thanks to telemedicine. Your Maine-based company may already have telemedicine available, and it’s a benefit to both you and your employees. Nearly three-quarters of employers with at least 500...
Proxy Gave ‘Fair’ Summary of Valuation Work, Chancery Says
In re Merge Healthcare Inc., Stockholders Litig. Several decisions in the Delaware Court of Chancery have focused on the use of the business judgment rule to defeat breach of fiduciary duty claims. Under the rule, the court does not second-guess a deal where a...
Tax-Exempt Organizations: IRS Provides Guidance on New UBTI Rule
More guidance has been issued by the IRS in regards to the Tax Cuts and Jobs Act (TCJA), signed into law in December 2017. This time the topic is the calculation of unrelated business taxable income (UBTI) for tax-exempt organizations and any separate trade or...
New Jersey Ruling Cements Use of DLOM to Sanction Oppressing Shareholder
Parker v. Parker You may remember the Wisniewski v. Walsh case, in which the court used the marketability discount to punish bad behavior. A trial court decision in a forced buyout follows the same approach. The oppressor had created an “extraordinary circumstance...
How Tax Reform Affects Tax Planning for C Corporations
Of all the changes under the Tax Cuts and Jobs Act (TCJA), one of the biggest is the permanent installation of a flat 21% federal income tax rate for C corporations for tax years beginning after 2017. This new 21% applies equally to personal service corporations...
Inadequate ESOP Valuation Vetting Gets Trustee Into Hot Water
Brundle v. Wilmington Trust N.A. The case involved a short-lived ESOP whose structure was unusual in that the sellers—the principal shareholders in a private security firm—agreed to sell 90% of their shares to the ESOP and exchange the remaining 10% for warrants. The...
Gen Z May Change How You Manage Employees
Is your company ready for Generation Z? Demographers and generation-focused marketing experts have begun talking about some of the differences they see in Gen Z, the newest group to enter the job applicant pool. There is no current consensus on the start of this...
Safeguard Your Company from Defective Product Suits
Does your Maine business deal with products instead of services? You need to make sure to factor in the potential liability for defective product claims. From state to state, laws regarding defective products vary, but in general, a product is considered defective if...