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Should Your Business Consider a Fiscal Year-End?
Most businesses close their books for tax and accounting purposes on December 31 because it aligns with the calendar year. But a calendar year isn’t always the best option. For some companies, choosing a fiscal year end that better reflects their business cycle can improve financial reporting and simplify year-end procedures and tax filing. Here’s [...]
Recognize Lulling Tactics and Limit Your Business’s Fraud Losses
“Lulling” may sound comforting, but in a fraud context, it’s far from it. This term refers to techniques fraud perpetrators use to prevent suspicious businesses or individuals from asking questions, getting angry — or even contacting law enforcement. To lull someone into inaction, a fraudster might offer excuses, make promises, blame delays on someone else [...]
It’s Your Last Chance to Claim These Clean Energy Tax Breaks
Last year’s One Big Beautiful Bill Act (OBBBA) terminated several clean energy tax incentives earlier than previously scheduled. But if you bought an electric vehicle or made certain green home improvements last year, you might be eligible for a tax credit on your 2025 individual income tax return. Remember, tax credits reduce your tax liability [...]
Liquidation Value Can Shape Critical Business Decisions
Most business valuations focus on the company’s value as a going concern, but some situations call for a different premise of value. When a business is struggling to stay afloat, it may be more appropriate to evaluate liquidation value. Here’s a closer look at situations where business valuation professionals might use this alternate premise of [...]
Business Deductions for Four-Legged Coworkers
Did you know that you can claim tax deductions for animals that serve a bona-fide business purpose? This benefit extends beyond agricultural operations. Working animals in many sectors may qualify. Here are the details. Working animals vs. personal pets A working animal must provide a clear and direct business benefit. Common examples include: Dogs used [...]
Don’t Get Burned When Partnering with a Social Media Influencer
Businesses commonly use social media platforms to increase brand and product awareness and drive traffic to their websites. Partnerships with “influencers” can be integral to these efforts — particularly if your company sells consumer goods or services. But how well do you know your influencers? Some may exaggerate their reach or even perpetrate fraud to [...]
Options for Forfeited Employee FSA Balances
Many businesses offer health care and dependent care flexible spending accounts (FSAs) as part of their employee benefits package. These plans provide valuable tax savings to employees and payroll tax savings to employers. If your company operates a calendar-year FSA with a 2½-month grace period, employees have until March 15, 2027 to incur eligible expenses [...]
4 Types of Interest Expense You May Be Able to Deduct
Personal interest expense generally can’t be deducted for federal tax purposes. There are, however, exceptions. Here are four, one of which is a new break under the One Big Beautiful Bill Act (OBBBA), which was signed into law in 2025. 1. Mortgage interest Perhaps the most well-known interest expense deduction, home mortgage interest may be [...]
What’s Your Potential Business Vehicle Deduction?
If you used one or more vehicles in your business during 2025, you may be eligible for valuable tax deductions on your 2025 income tax return. Businesses can generally deduct expenses attributable to business use of a vehicle plus depreciation. However, the rules are complicated, and your deduction may be affected by factors such as [...]
M&A Spotlight: Business Valuation Guidance Remains Critical After Closing
Business owners often turn to valuation professionals for help during the merger and acquisition (M&A) process. However, their expertise extends beyond establishing reasonable price expectations, structuring transactions and evaluating deal terms. Valuators can continue to provide support after closing to help ensure buyers achieve expected results and avoid post-acquisition pitfalls. Hot M&A market The M&A [...]
Parents: Claim all the Tax Credits You’re Entitled To
Raising a family comes with plenty of expenses, but it may also make you eligible for various tax breaks. Some of the most valuable are tax credits, because they reduce your tax liability dollar for dollar (unlike deductions, which only reduce the amount of income subject to tax). Here’s what you need to know. Child, [...]
Deferring Taxes on Advance Payments
An advance payment is one received by a business before it provides whatever is being paid for. For federal income tax purposes, generally advance payments must be reported as taxable income in the year received. This treatment always applies if your business uses the cash method of accounting for tax purposes. But, if your business [...]
10 Questions to Help You Prevent Customer List Theft
You understand how important customer lists are to your business’s financial success. So do employees. In fact, some dishonest workers may be tempted to take lists with them when they leave — or even sell them while still employed by your company. Employees bent on fraud may misuse legitimate access to download or forward customer [...]
Owner’s Compensation: A Critical Business Valuation Adjustment
Owners’ compensation can be a subjective — potentially contentious — issue when valuing a closely held business. Here’s an overview of how business valuation professionals evaluate and adjust for owners’ compensation when assessing normalized earnings. The link between owners’ compensation and value Under the fair market value standard, the focus is on what a hypothetical [...]
Quadrupled SALT Deduction Limit Means More Taxpayers will Benefit from Itemizing on their 2025 Returns
An important decision to make when filing your individual income tax return is whether to claim the standard deduction or itemize deductions. A change under the One Big Beautiful Bill Act (OBBBA) will make it beneficial for more taxpayers to itemize deductions on their 2025 returns. Specifically, if you paid more than $10,000 in state [...]
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.
