Valuing a Hypothetical Asset Renders Appraisal Meaningless
Alli v. Commissioner, 2014 Tax Ct. Memo LEXIS 15 (Jan. 27, 2014) A taxpayer handed the IRS an easy victory when he challenged the government’s denial of his claim for a charitable contribution deduction related to his S corporation’s donation of a neglected apartment...
Manage Debts to Protect Bottom Line
Most small business owners realize that paying company debts is just as important as collecting accounts receivable and that these debts need just as much management. What business owners may not realize is that they can actually have a surprising amount of control...
The ABCs of Business Valuation
Many Maine-based small business owners know some of the theory behind business valuation, but they might not know all of the procedures involved in the analysis and preparation of a report. Clients and attorneys who understand how the valuation process works are...
Small Businesses Can Face Big Fraud Losses
Many Maine-based small business owners assume their companies are less susceptible to fraud than large corporations. It seems like their operations are more tightly controlled, with many trustworthy and longtime employees on the payroll. Unfortunately, however, this...
Court Pans Valuation Based on Expert’s Fiction, Not Fact
Ward v. Ward, 2014 W.Va. LEXIS 128 (Feb. 14, 2014) In a divorce case, the husband appealed to the state’s highest court, arguing that the lower courts accepted a valuation of his business interest that did not reflect the company as it was on the valuation date....
Is A Home Office Tax Deductible?
Many Maine-based small business owners start out with an office in their homes. An important benefit to this is being able to deduct the expense of the office on the tax return. It’s key for home-based business owners to know that in order to receive the deduction,...
A Direct Way to Save Time and Money
The term direct deposit does not apply to payroll only. This can be a time and money saving service to businesses in other ways too. What about the checks written for expense reimbursements or commissions? For a corporation, how about depositing the dividend checks of...
When Goodwill Takes Center Stage
According to the International Glossary of Business Valuation Terms, goodwill is defined as: "That intangible asset arising as a result of name, reputation, customer loyalty, location, products, and similar factors not separately identified." The remainder of value...
Court Likens ‘Book of Business’ to Professional Goodwill
Finby v. Finby, 2013 Cal. App. Unpub. LEXIS 9097 (Dec. 18, 2013) A California divorce case in which one spouse was a financial advisor with an impressive client list raised a host of conceptual and technical valuation questions as to the community’s interest in her...
Business Interruption Insurance: A Lifeline When Disaster Strikes
2014 might not have had a very active hurricane season, but it did have its fair share of other natural and manmade disasters, including blizzards, wildfires, mudslides, and riots. These tragedies serve as sobering reminders to always expect the unexpected. When it...