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Be Tax-Smart with your Mutual Fund Investments
Mutual funds offer an easy way to invest in a diversified portfolio compared to buying individual stocks and bonds. But the tax treatment of mutual funds isn’t so simple. How are mutual funds taxed? If you sell appreciated mutual fund shares, the resulting profit will be taxable. If you’ve held the shares for one year [...]
Back to Basics: 8 Anti-Fraud Controls to Help Keep Operations Running Smoothly
Fraud prevention doesn’t always require large expenditures or sophisticated technology. More often, it comes down to simple controls that address common fraud vulnerabilities. Many banks offer tools that can strengthen payment controls, but businesses must make sure the tools are properly activated and consistently used. Other safeguards depend on well-designed internal procedures and employee compliance. [...]
When an Employee’s Form W-4 Raises Red Flags
Your employees use Form W-4, “Employee’s Withholding Certificate,” to tell you how much federal income tax to withhold from their pay. Most forms are routine, but an altered certificate, unusual accompanying statement or IRS lock-in letter may require special handling. Knowing how to respond can help your business meet its withholding obligations without becoming involved [...]
How WHAT you Donate Impacts your Tax Deductions
Have you already made contributions to charity this year? Are you considering making more between now and year end? If so, it’s important to be familiar with the tax rules for different types of donations so you can maximize your tax benefit — or at least avoid finding out at tax filing time that your [...]
Using the Asset Approach to Value a Business
Business valuation professionals use three approaches to determine the fair market value of a business or business interest. First, the income approach derives value from the business’s future earnings. Second, the market approach relies on comparable business transactions to estimate value. And last, but not least, the asset (or cost) approach converts the book values reported [...]
The New-and-Improved Credit for Employer-Provided Child Care
Offering a broad menu of employee benefits can help your business attract and retain skilled workers. One benefit that’s popular among employees with families is employer-provided child care. Although this option hasn’t been financially feasible for many small businesses, recent tax law changes may give you a reason to reconsider opening (or upgrading) a child [...]
Before Your Spend Lottery, Gambling or Other Winnings, Understand the Tax Rules
It’s easy to focus on the excitement of a big win. But federal tax law generally treats lottery prizes, gambling winnings and other awards as taxable income. Knowing the basic rules can help you avoid surprises when you file your 2026 return next year. Lottery prizes Of course, the chances of winning big in the [...]
FAQs About Resolving Small Business Tax Issues
Tax problems can happen to even the most organized small business owners. A cash flow crunch, an unexpected tax notice, a missed filing deadline or a payroll tax oversight can be stressful — especially when penalties and interest begin to add up. Fortunately, businesses can get back on track by addressing tax issues promptly and [...]
Ask Your Audit Committee to Oversee Fraud Prevention
Fraud prevention starts at the top — with the board of directors. In fact, an engaged audit committee (or other oversight team, such as an advisory board) can help protect your organization from criminal threats, both internal and external. Reviewing financial statements and audit results remains an important responsibility of the committee. But audit committees [...]
Mid-Year Tax Planning: Review Opportunities to Save Taxes This Year (or Next)
Summer is a good time to see whether your income, deductions and investment activity are lining up as expected. Let’s take a look at a few areas that commonly provide tax-saving opportunities. Your tax bracket The legislation commonly known as the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, [...]
Selecting a Tax Accounting Method for your Small Business
Small business owners must answer an important question: Should we use the cash or accrual accounting method for federal income tax purposes? Larger entities are required to use the accrual method. But certain small businesses can elect to use the cash method. You may want to consider this option if it will help lower your [...]
Why Business Owners Need a Valuation to Address Estate Planning Needs
Summer is often a good time to revisit your estate plan, especially if you’re getting together with loved ones for vacations or family gatherings. Of course, if you own a closely held business, it should be a critical part of your plan. Although you might be aware of some rules of thumb for valuing businesses [...]
Will Your Social Security Benefits be Taxable?
Last year, the new tax deduction for taxpayers 65 and older was sometimes referred to as “no tax on Social Security.” In actuality, this up-to-$6,000-per-individual deduction, also known as the “senior” deduction, is generally available whether or not someone receives Social Security benefits. (But other limits do apply, such as an income-based phaseout.) Of course, [...]
Fraud Targeting Veterans is a Small Business Issue
U.S. military veterans own majority stakes in more than 1.6 million businesses and represent 5.3% of this country’s business owners, according to the U.S. Small Business Administration. Even if you aren’t a veteran, you might employ individuals who’ve served. Employees who suffer fraud losses may be distracted and less productive at work — and the resulting [...]
What’s the Right Entity Type for your New Business
Start-ups must choose a legal entity for their business activities. The type of entity you select affects how the business is taxed and who may be held personally liable for its debts and obligations, among other things. Two popular options — assuming you’re going into business with one or more other people — are S [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
