Are Contingent Attorneys’ Fees Tax Deductible?
You may be wondering whether the expense of a contingent-fee arrangement with your attorney is deductible for federal income tax purposes. Unfortunately, the guidance on this controversial issue isn't favorable to taxpayers in most situations. The federal income tax...
Consultants Can Help Your Business Achieve Success
You may have expertise in marketing, production and sales, like other business executives. Yet the short and long-term profitability of your Maine small business relies on strategic planning that looks at marketing, production and sales from several different angles....
Chancery Achieves Fair Value by Blending Three ‘Imperfect Techniques’
In re DFC Global Corp., 2016 Del. Ch. LEXIS 103 (July 8, 2016) A recent fair value decision from the Delaware Court of Chancery turned on the idea of uncertainty. Impending regulatory changes in key markets made it hard to predict the company’s future performance....
Capital vs. Ordinary: Classifying Income and Losses Affects Your Taxes
How to classify gains and losses from selling an asset in Maine is fairly straightforward most of the time. However, there are some gray areas that require a closer look at the facts and circumstances, especially when real estate is involved, as a couple of recent...
10 Simple and Fun Ways to Cut Taxes This Summer in Maine
In many parts of the country it's already starting to feel like summer, and we hope Maine will get there shortly. But the forecast for Washington remains unclear as officials continue to discuss various tax-related issues. Regardless of what happens in Washington,...
‘Dramatic’ Valuation Adjustment Justifies Equity Committee
In re Horsehead Holding Corp., 2016 Bankr. LEXIS 3187 (May 2, 2016) Shareholders in a bankrupt company rarely get to form an equity committee that represents their interests during the reorganization proceedings. But, in an extraordinary bankruptcy case, the court,...
Employer Can Have Info about Whether Misclassified Workers Paid Tax
Recently, the U.S. Tax Court ruled that federal law doesn't prohibit an employer from receiving information on whether workers paid tax on the income when the employer is looking reduce its tax liability on misclassified workers. Background on the Ruling In order to...
Establishing Maine Residency for State Tax Purposes
If you’re considering moving yourself or your business to Maine and making it your permanent home, you’ll want to make sure to establish that the new state is your place of legal residency (also known as your "domicile") for state tax purposes. Otherwise, the old...
Health Savings Account Limits for 2018
Businesses in Maine and individuals can buy less expensive health insurance policies with high deductibles with Health Savings Accounts (HSAs). Contributions to the accounts are made on a pre-tax basis, and the money can accumulate year after year tax free. It can...
Important Tax Figures for 2017
The dollar amounts allowed for various federal tax benefits are subject to change every year based on legislation and inflation adjustments. Here are some important tax figures for 2017, compared with 2016, including Social Security wage base, qualified retirement...