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5 Business Succession Options and Their Tax Implications
When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different [...]
Maximizing Employee Transportation Fringe Benefits
There are some nice tax breaks for transportation-related employee fringe benefits. If your employer offers these tax-favored fringes, you should probably take advantage of them by signing up. Here’s a quick summary of the current federal tax treatment of transportation-related benefits. Mass transit passes For 2025, employer-provided mass transit passes for train, subway and bus [...]
Help Prevent Fraud in Your Family Business
Statistics on fraud rates in family-run businesses are scant. This is probably because most family enterprises keep incidents of financial malfeasance under wraps and don’t involve law enforcement or the courts. Because punishing offenders is critical to preventing future fraud, such secrecy can encourage schemes and raise the risk of large financial losses. So although [...]
Exploring Business Entities: Is an S Corporation the Right Choice?
Are you starting a business with partners and deciding on the right entity? An S corporation might be the best choice for your new venture. One benefit of an S corporation One major advantage of an S corporation over a partnership is that shareholders aren’t personally liable for corporate debts. To ensure this protection, it’s crucial to: Adequately [...]
The Extended 2024 Gift Tax Return Deadline is Looming
If you made significant gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2024 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway. Requirements to file The annual gift tax exclusion [...]
Speculative Financial Projections Won’t Pass Muster in Court
Business valuation professionals often rely on client-prepared financial projections to calculate lost profits and diminution in value. However, courts may exclude expert testimony that’s based on speculative or unreliable projections. To withstand scrutiny, valuators must support their conclusions with market-based evidence and a rigorous analysis of case-specific facts. The landmark case Endless River Technologies, LLC [...]
Ways to Manage the Limit on the Business Interest Expense Deduction
Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created §163(j), which generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, it’s important to understand the impact of the deduction [...]
Can I Itemize Deductions on my Tax Return?
You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldn’t be claimed because you didn’t have enough deductions to itemize. How much do you need? You can itemize deductions if the total of your allowable itemized write-offs for the [...]
How a Business Owner’s Home Office Can Result in Tax Deductions
As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. There are two methods for claiming this tax break: the actual expense method and the simplified method. Here [...]
Why You Should Exercise Caution When Investing in Crypto
Driven by an increased interest in cryptocurrency, little regulatory oversight and the constant introduction of new coins, cryptocurrency fraud could reach unprecedented levels in 2025. Fraud perpetrators no longer need to rely only on phishing attacks or counterfeit coins — they’re now using artificial intelligence to scam crypto investors. Unfortunately, many law enforcement agencies don’t [...]
IRS Reopens Portal for 2024 Clean Vehicle Credit Claims, Offering Relief to Taxpayers and Dealers
In a significant update for taxpayers and auto dealers, the IRS has announced a critical change to its process for claiming clean vehicle credits for the 2024 tax year. This development, spurred by advocacy from the National Automobile Dealers Association (NADA), addresses widespread issues that prevented many from accessing the New Clean Vehicle Credit and [...]
New IRS Guidance on ERTC Refunds
On March 21, 2025, the IRS released updated FAQs and guidance that introduce a new process for taxpayers dealing with Employee Retention Tax Credit (ERTC) refunds, particularly when those refunds relate to wages paid in prior tax years like 2020 or 2021. This update aims to simplify reporting requirements and provide clarity for taxpayers who [...]
Do You Have an Excess Business Loss?
If an individual taxpayer has substantial business losses, unfavorable federal income tax rules can potentially come into play. Here’s what you need to know as you assess your 2024 tax situation. Disallowance rule The tax rules can get complicated if your business or rental activity throws off a tax loss — and many do during [...]
Perception vs Reality: What is the Value of a Business Interest?
A business interest’s value is more than just a number to its owner. It represents years of hard work, sacrifice and investment. Owners often believe they have a clear understanding of their company’s worth. But emotions and optimism about future earnings can cloud their perception. Let’s look at psychological factors that may affect owners’ value [...]
You May Be Able to Make a Deductible IRA Contribution for Last Year This Year
If you’re getting ready to file your 2024 tax return and your tax bill is higher than you’d like, there may still be a chance to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA until this year’s April 15 filing deadline and benefit from the tax savings on [...]
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.
