Superior Results. Delivered.
Blog
How Your Business Can Fight Brandjacking
Brandjacking occurs when an individual or group misappropriates a company’s brand identity and uses it for financial gain or, in some cases, malicious sabotage. Such schemes can include phishing that links to cloned websites with embedded malware, cybersquatting (registering domain names similar to another company’s to divert traffic) and setting up shops to sell inferior [...]
Significant Changes to Information Reporting Go Into Effect for the 2026 Tax Year
If your business has employees or uses independent contractors, you have associated annual information reporting obligations. The One Big Beautiful Bill Act (OBBBA) makes changes impacting these rules, but not for the 2025 tax year. Tips and overtime income For 2025 through 2028, the OBBBA creates new deductions for employees who receive qualified tips income [...]
Checking Off RMDs from the the Year-End To-Do List
For older taxpayers with one or more tax-advantaged retirement accounts, as well as younger taxpayers who’ve inherited such an account, there may be one more thing that’s critical to check off the to-do list before year end: Take required minimum distributions (RMDs). Why is it important to take RMDs on time? When applicable, RMDs usually [...]
FLP on Trial: Tax Court Denies Valuation Discounts
A family limited partnership (FLP) can be a powerful tool for consolidating and managing family wealth while reducing gift and estate taxes, in part through valuation discounts. However, the IRS closely scrutinizes these arrangements, especially when they involve deathbed transfers or when donors fail to retain sufficient personal assets outside of the partnership. A recent [...]
New Law Eases the Limitation on Business Interest Expense Deductions for 2025 and Beyond
Interest paid or accrued by a business is generally deductible for federal tax purposes. But limitations apply. Now some changes under the One Big Beautiful Bill Act (OBBBA) will result in larger deductions for affected taxpayers. Limitation basics The deduction for business interest expense for a particular tax year is generally limited to 30% of [...]
These Shape-Shifting Frameworks Can Help You Fight Fraud
The “fraud triangle” is a three-legged model that explains the generally required conditions for a worker to commit occupational fraud: 1) incentive, 2) opportunity and 3) rationalization. Twenty years ago, fraud experts expanded the triangle to include another leg — capability — and the “fraud diamond” was born. Since then, the diamond framework has gained considerable support among [...]
Beyond EBITDA: Key Factors That Affect Business Value
Obviously, financial statements play a critical role in valuing businesses for mergers and acquisitions (M&As). Prospective buyers turn first to financial metrics — such as earnings before interest, taxes, depreciation and amortization (EBITDA) — when deciding how much they’re willing to offer. However, other factors, commonly referred to as key value drivers, can boost a [...]
How Will Taxes Affect Your Merger or Acquisition?
Whether you’re selling your business or acquiring another company, the tax consequences can have a major impact on the transaction’s success or failure. So if you’re thinking about a merger or acquisition, you need to consider the potential tax impact. Asset sale or stock sale? From a tax standpoint, a transaction can basically be structured [...]
New Itemized Deduction Limitation Will Affect High-Income Individuals This Year
Beginning in 2026, taxpayers in the top federal income tax bracket will see their itemized deductions reduced. The new limitation up close Before the Tax Cuts and Jobs Act (TCJA), certain itemized deductions of high-income taxpayers were reduced, generally by 3% of the amount by which their adjusted gross income exceeded a specific threshold. For [...]
Bar the Back Door: Preventing Retail Inventory Theft
When your retail store closes for the day, does some of your merchandise walk out the back door? “Shrinkage” generally occurs when employees, customers or vendors steal inventory. However, it can also happen when employees make honest errors, or when inventory is damaged, spoiled or becomes obsolete. Whatever the cause, retail owners and managers can [...]
New Deduction for QPP Can Save Significant Taxes for Manufacturers and Similar Businesses
The One Big Beautiful Bill Act (OBBBA) allows 100% first-year depreciation for non-residential real estate that’s classified as qualified production property (QPP). This new break is different from the first-year bonus depreciation that’s available for assets such as tangible property with a recovery period of 20 years or less and qualified improvement property with a [...]
Shift Income to Take Advantage of the 0% Long-Term Capital Gains Rate
Are you thinking about making financial gifts to loved ones? Would you also like to reduce your capital gains tax? If so, consider giving appreciated stock instead of cash. You might be able to eliminate all federal tax liability on the appreciation — or at least significantly reduce it. Leveraging lower rates Investors generally are [...]
How Market Volatility May Affect Valuation Discounts for Lack of Marketability
When determining how much a business is worth, a valuation professional must evaluate current market conditions — and today’s marketplace is full of uncertainties. Top concerns among business leaders in the third quarter of 2025 included tariffs, monetary policy, inflation and the availability of skilled workers, according to The CFO Survey, a collaboration of Duke [...]
What You Need to Know About Deducting Business Gifts
Thoughtful business gifts are a great way to show appreciation to customers and employees. They can also deliver tax benefits when handled correctly. Unfortunately, the IRS limits most business gift deductions to $25 per person per year, a cap that hasn’t changed since 1962. Still, with careful planning and good recordkeeping, you may be able [...]
How the Social Security Wage Base Will Affect Your Payroll Taxes in 2026
The 2026 Social Security wage base has been released. What’s the tax impact on employees and the self-employed? Let’s take a look. FICA tax 101 The Federal Insurance Contributions Act (FICA) imposes two payroll taxes on wages and self-employment income — one for Old-Age, Survivors, and Disability Insurance, commonly known as the Social Security tax, [...]
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.
