How to Review a Valuation Report
Business valuations are prepared for many purposes Maine, including litigation, estate and gift tax, and the purchase or sale of a business. They can be an essential part of all of these things, and it is important to properly understand and utilize a valuation. At...
How to Select a Business Valuation Expert
The selection of a business valuation expert is critical when you or your clients have a need to know the value of their Maine-based business. Before selecting an expert, there are several considerations that must be made. The primary consideration is the purpose of...
Go It Alone with a 401(k) Plan
If your Maine-based small business is essentially a one-person operation, there's an option to help you save more money for retirement: The Solo 401(k) plan. Ordinarily, traditional defined contribution retirement plans allow annual contributions that are limited to...
Why Have a Business Valued?
It is a good idea to know the reasons for a valuation to be able to take advantage of situations when it may be beneficial. Some reasons for obtaining a valuation are a necessity, such as for determining the value of the business interest in an estate. Other reasons...
Tax Benefits of Being a Good Corporate Citizen
Slow-moving inventory is easy enough to discount or liquidate, but there's another option that can give your Maine-based business more of a benefit: donate that stock or computer equipment to charity. In general, when you donate inventory or property used in your...
Reducing a BIG Tax on S Corporations
If you are thinking about converting your C-corporation into an S-corporation, you must plan ahead to avoid owing a substantial tax on gains recognized for 10 years following the conversion. The built-in gains (BIG) tax rate is the highest corporate tax rate,...
IRA-Based Business Strategy Runs Afoul of Tax Regulations
A recent report from the New York Times makes it clear that aspiring business owners commonly use their retirement accounts to get their new ventures off the ground. But, as a recent tax court case illustrates, what may seem like a smart investment strategy can go...
Converting an Unincorporated Business Into an S Corp
In a previous article, we discussed the benefits of S-corporations for your Maine-based small business. Here we’ll delve further into the idea of S corporation conversion, as the federal self-employment (SE) tax doesn’t apply to earnings from an S corporation...
Court Decisions Make it Easier to Deduct LLC Losses
What happens if you're the owner of a limited liability company (LLC) that generates tax losses, and you don't spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely...
Court Reproves Spouse’s Efforts to Lower Value of Community Business
Charles v. Charles, 2013 Cal. App. Unpub. LEXIS 2386 (April 2, 2013) "The subtext of this date-of-valuation-of-a-community-business case," the California Court of Appeal said, "is how a strategy can backfire." The operating spouse of the business counted on its value...