Superior Results. Delivered.
Blog
Tax Affecting: A Controversial Issue in Pass-Through Business Valuations
Tax affecting is one of the most debated issues when valuing interests in privately held businesses using the income approach. This term refers to discounting the projected earnings of pass-through businesses for hypothetical entity-level taxes. Unlike C corporations, pass-through entities — such as S corporations, partnerships, limited liability companies and sole proprietorships — don’t pay [...]
The Advantages of a Living Trust for Your Estate Plan
Do you believe you don’t need to worry about estate planning because of the current federal estate tax exemption ($13.99 million per individual or $27.98 million for married couples in 2025)? Well, think again. Even with this substantial exemption, creating a living trust can offer significant benefits, especially if your goal is to avoid probate [...]
Planning a Summer Business Trip? Turn Travel into Tax Deductions
If you or your employees are heading out of town for business this summer, it’s important to understand what travel expenses can be deducted under current tax law. To qualify, the travel must be necessary for your business and require an overnight stay within the United States. Note: Under the Tax Cuts and Jobs Act, [...]
The One Big Beautiful Bill Act is Now Law
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, following its approval by the Senate on July 1 and the House on July 3. The legislation’s passage capped a whirlwind of Congressional activity, marked by prolonged debates, unprecedented voting marathons, and numerous negotiations to secure passage in a narrowly [...]
Is Your Construction Business Built on Fraud?
It’s the height of the construction season in most parts of the country and your business probably wants to make the most of it. But rising costs, worker shortages, international tariffs and other pressures may threaten the profitability of your enterprise. The last thing you need is fraud. According to the Association of Certified Fraud [...]
Digital Assets and Taxes: What You Need to Know
As the use of digital assets like cryptocurrencies continues to grow, so does the IRS’s scrutiny of how taxpayers report these transactions on their federal income tax returns. The IRS has flagged this area as a key focus. To help you stay compliant and avoid tax-related complications, here are the basics of digital asset reporting. [...]
Addressing Real Estate Assets When Valuing a Business
It’s important to determine whether a business valuation also calls for a real estate appraisal. While the decision may be relatively straightforward for real estate holding companies, it becomes more nuanced for operating businesses that own or lease real property. In many cases, real estate isn’t just a backdrop for business activity — it’s a [...]
The IRS Recently Announced 2026 Amounts for Health Savings Accounts
The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs). Employees will be able to save a modest amount more in their HSAs next year. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can [...]
How Working in the Gig Economy Affects Your Taxes
The gig economy offers flexibility, autonomy and a way to earn income, but it also comes with tax obligations that can catch many workers off guard. Whether you’re driving for a rideshare service, delivering food, selling products online or offering local services like pet walking, it’s crucial to understand the tax implications of gig work [...]
Seeing Isn’t Believing: GenAI Document Fraud
Technological advances can as easily open the door to fraud as shut it. Case in point: Although significant improvements have been made to generative artificial intelligence’s (GenAI’s) document generation capabilities, such upgrades have generally made fraud easier to perpetrate. Here’s how your business can prevent and detect GenAI document fraud attempts by rogue employees. Perennial [...]
Hiring Independent Contractors? Make Sure You’re Doing it Right
Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead [...]
Tax Rules for Legal Awards and Settlements: What Recipients Should Know
If you’ve recently received a settlement or award from a lawsuit, or you’re expecting one, you may be wondering how the IRS views this money. Will you need to pay taxes on it? The short answer: It depends on the type of damages you received. Understanding the basic rules can help you avoid surprises. Taxable [...]
Business Valuations Must Look to the Future, Not the Past
Historical financial performance is just one piece of the business valuation puzzle. While it provides a starting point, its relevance depends on whether the business is expected to achieve similar results in the future. High interest rates, restricted access to credit, global trade uncertainties, tax policy ambiguity and geopolitical instability have significantly altered the business [...]
One, Big, Beautiful Bill – What Individuals Should Know About the Latest Proposals
The U.S. House of Representatives passed The One, Big, Beautiful Bill Act on May 22, 2025, introducing possible significant changes to individual tax provisions. While the bill is now being considered by the Senate, it’s important to understand how the proposals could alter key tax breaks. Curious about how the bill might affect you? Here [...]
One, Big, Beautiful Bill – What Business Owners Should Know About the Latest Proposals
A bill in Congress — dubbed The One, Big, Beautiful Bill — could significantly reshape several federal business tax breaks. While the proposed legislation is still under debate, it’s already sparking attention across business communities. Here’s a look at the current rules and proposed changes for five key tax provisions and what they could mean [...]
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.
