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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, [...]
Valuation is the Foundation of Every Sale-Ready Business
Are you thinking about selling or merging your business? In September 2025, the Federal Reserve Bank lowered its benchmark rate by 0.25% and hinted at possible additional rate cuts in the coming months. Lower rates, combined with favorable tax law changes, could spark the merger and acquisition (M&A) market as we head into 2026. Even [...]
Is an HDHP Plus an HSA a Financial Smart Health Care Option for You?
Health care costs continue to increase. Pairing a high-deductible health plan (HDHP) with a Health Savings Account (HSA) can help. Insurance premiums will be lower because of the high deductible. And the HSA provides a tax-advantaged way to fund the deductible and other medical expenses. 5 HSA tax benefits HSAs offer both current and future [...]
Year-End Tax Planning for Accrual-Basis Taxpayers
Year-end is a good time to review your business’s expenses for deductibility. Accelerating deductible expenses into this year generally will reduce 2026 taxes and might even provide permanent tax savings. Also consider the impact of the One Big Beautiful Bill Act (OBBBA). It makes permanent or revises some Tax Cuts and Jobs Act (TCJA) provisions [...]
Keep Packages Safe From Theft This Holiday Season
In 2024, a whopping 22.4 billion parcels were shipped in the United States, according to shipping management vendor Pitney Bowes. The average American received 78% more packages in 2024 than in 2017 (growth fueled primarily by online purchasing). And this total is expected to climb even higher in 2025. Many consumers and businesses have already [...]
The 2025 SALT Deduction Cap Increase Might Save Your Substantial Taxes
If you pay more than $10,000 in state and local taxes (SALT), a provision of the One Big Beautiful Bill Act (OBBBA) could significantly reduce your 2025 federal income tax liability. However, you need to be aware of income-based limits, and you may need to take steps before year end to maximize your deduction. Higher [...]
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.
