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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 [...]
When the Sale of an Appreciated Home Triggers Taxes — and When it Doesn’t
Home values have risen significantly in many areas of the country over the last several years, leaving some homeowners with substantial gains when they sell. Of course a large profit is generally a good thing. But, depending on the amount of your gain, how long you’ve owned and resided in the home, and your income [...]
Don’t Let the IRS Treat Your Sideline as a Hobby
Do you operate a side gig in addition to your regular day job? Whether you’ve turned a love for crafting into an online store or you play the guitar at a local venue, you’ll need to report the income from your sideline activity on your tax return. But can you deduct the related expenses? The [...]
Revenue Ruling 59-60: Does Your Business Valuation Cover All The Bases?
The IRS created Revenue Ruling 59-60 to outline the methods and factors to consider when valuing closely held businesses for federal gift and estate tax purposes. Today, it’s often referenced in valuations prepared for other reasons, including divorce cases and shareholder disputes. Here’s a closer look at what it prescribes, including lesser-known details that you [...]
Don’t Overlook These Tax Issues After a Job Loss
Even with a relatively low unemployment rate (averaging around 4.4% over the past year), layoffs and terminations continue to affect workers across many industries. If you’ve recently lost your job, you’re likely focused on replacing income and evaluating your next steps. But some tax implications related to a job loss also may require attention. Here [...]
Demystifying Like-Kind Exchanges
If you’re a real estate developer or a small business owner who owns commercial real estate, you might be thinking about selling a property. If it has appreciated significantly, a §1031 like-kind exchange may allow you to defer tax on some or all of the gain. With this transaction, you exchange one property for another [...]
Prevent Task Fragmentation from Hiding Fraud
Fraud can be difficult to detect when different employees handle different parts of a transaction. A dishonest manager may instruct several employees to perform routine tasks that appear legitimate. But because each employee sees only a small piece of the process, no one recognizes that the overall transaction might be fraudulent. This tactic, known as [...]
The “Kiddie Tax” Can Apply Long After Childhood
Many parents don’t know that the so-called “kiddie tax” exists. Others assume it affects only minor children. But it also can apply to full-time students through age 23 and 18-year-olds even if they aren’t full-time students. When it applies, most of the child’s unearned income may be taxed at the parent’s higher tax rate. The [...]
Self-Employed? Don’t Overlook Valuable Tax Deductions
If you’re self-employed, you probably have questions about deducting business expenses on your federal income tax return. Here’s a quick overview of the filing requirements for sole proprietors and independent contractors, and five examples of expense deductions that are commonly overlooked or misunderstood. Filing basics Sole proprietors and independent contractors must report their business activity [...]
FAQs About Valuing Goodwill in Marital Dissolutions
When a marital estate includes a closely held business, the value of goodwill often becomes a contentious issue. Goodwill is an intangible asset that can have substantial value. However, whether it’s considered a marital asset depends on case facts, state law and legal precedent. A business valuation professional can help you navigate this complex issue. [...]
Should You Make After-Tax, Non-Roth 401(k) Contributions
If you participate in a company 401(k) plan, you already know that you can make pre-tax contributions up to the annual elective deferral limit to a traditional, tax-deferred account. If your 401(k) plan offers a Roth option, you can use part or all of your limit to make after-tax contributions to a Roth account instead. [...]
Beware of Potential Tax Issues When Selling Self-Created Intangibles
Many modern businesses rely on intangible assets, such as goodwill, trademarks and customer lists. But the IRS doesn’t treat all intangibles the same way. Questions about how these assets are taxed often arise when a business is sold, ownership changes hands, or intellectual property is licensed or transferred. Generally, intangibles qualify as capital assets that [...]
What Your Industry Might Say About Preventing Fraud
Research by the Association of Certified Fraud Examiners (ACFE) and others has consistently found that some industries suffer higher fraud losses than others. For example, according to the ACFE’s Occupational Fraud 2026: A Report to the Nations, the median fraud loss per incident for the mining, real estate, energy and wholesale trade sectors is $220,000 [...]
Protect Yourself from Fraudsters Impersonating the IRS and Other Tax Scams
Tax scammers continue to target taxpayers through email, text messages, phone calls and regular mail. They often try to create urgency or fear to trick victims into sharing sensitive information or sending money. The IRS warns taxpayers to remain cautious because scammers continually change tactics to steal personal and financial information. IRS impersonation scams First [...]
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.
