Setting Up a Home Office in Maine?
You may be able to deduct the costs of maintaining an office at home, if you're self-employed in Maine as a sole proprietor, partner, or LLC member. But before you start jumping for joy, it’s important to note that in order to claim a business deduction for an office...
Good News in the New Year: IRS Extends ACA Filing Deadlines
The new year brought some good news from the IRS for Maine Employers. They announced that the due dates for filing 2015 Affordable Care Act (ACA) information returns have been extended. This gives employers extra time to provide the forms to the recipients, and file...
A Closer Look at the Excess Earnings Method
Valuation experts often criticize the Excess Earnings Method, calling it ambiguous, over-simplified or outdated. But it's still used in some jurisdictions as a way to value small businesses and professional practices, especially in a divorce setting. The method was...
Chancery Savages Accounting Firm Over Manipulated Valuation
Fox v. CDx Holdings, 2015 Del. Ch. LEXIS 194 (July 28, 2015) The Delaware Court of Chancery has on numerous occasions called out major financial institutions for providing erroneous or even “motivated” valuations. But few opinions include more searing criticism than a...
How Elements of Control Affect Value
“The whole is greater than the sum of its parts.” This is a common phrase, but it’s not as common for businesses to realize that this same theory can apply in the valuation of interests in a business. Controlling Interest is Valuable A publicly traded business is...
Three Approaches to Valuing a Business
Valuing a private business is a complex process, but most closely held business owners want to know the value of their investments, especially if they are going to sell or gift shares to family members or charities. It is vital to hire a valuation professional who...
The Deductible 2016 Mileage Rates for Business
The IRS 2016 optional standard mileage rates are in. These rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. You can generally deduct actual expenses incurred from driving your vehicle for...
Health Savings Account Limits for 2016
Health Savings Accounts (HSAs) allow individuals and businesses to buy less expensive health insurance policies with high deductibles, and contributions to the accounts are made on a pre-tax basis. The money can accumulate year after year tax free, and be withdrawn...
Estimating Replacement Compensation in Divorce
During a divorce, when either spouse owns a private business interest, the divorce settlement is only as reasonable as the value of the business and the compensation of its owners. Replacement compensation can become a controversial issue, especially when the spouse...
Value is in the Eyes of the Beholder
Maine business owners are often surprised when they receive their valuation report from a hired appraiser. Often times the expert is hired to determine the fair market value of a business interest for, say, divorce or gift and estate tax purposes, and the client...