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A Business Valuation is Critical to a Successful PE Transaction
For a business owner, selling the company to a private equity (PE) firm can be one of the most significant financial and strategic events of his or her life. Many sellers focus on their companies’ operational aspects, such as growth initiatives, management depth and clean financials. However, valuation readiness is just as critical. Here are [...]
How the New Trump Accounts for Children Will Work
A new tax-advantaged way to help children build up savings for the future was created by the One Big Beautiful Bill Act (OBBBA): Trump Accounts (TAs). Under a pilot program, you can make an election to set up a TA for your U.S. citizen child born in 2025 through 2028 and the federal government will [...]
There’s Still Time to Set Up a SEP and Reduce Your 2025 Taxes
If you own a business or are self-employed and haven’t already set up a tax-advantaged retirement plan, consider establishing one before you file your 2025 tax return. If you choose a Simplified Employee Pension (SEP), you’ll be able make deductible 2025 contributions to it, saving you taxes. Not only is the SEP deadline favorable, but [...]
Why Silence About Fraud Only Makes it Worse
Business owners generally experience a range of emotions — including anger, bewilderment and embarrassment — if fraud occurs in their organization. Fraud can feel personal because it may imply management incompetence or misplaced trust. For their part, managers and ordinary employees often fear punishment when fraud is revealed. So they may minimize or rationalize the [...]
Tax Filing FAQs for Individuals
The IRS opened the filing season for 2025 individual income tax returns on January 26. This is about the same time as when the agency began accepting and processing 2024 tax year returns last year, despite IRS staffing having been significantly reduced since then. Here are answers to some FAQs about filing. When is my [...]
FAQs About Using the Market Approach to Value a Business
The market approach is based on a straightforward premise: A company’s value can be derived from the prices others pay for similar businesses. But, in practice, this technique isn’t nearly so straightforward. Here are answers to some frequently asked questions about this approach. How does it work? The market approach estimates the value of a [...]
When Medical Expenses Are . . . and Aren’t . . . Tax Deductible
If you had significant medical expenses last year, you may be wondering what you can deduct on your 2025 income tax return. Income-based thresholds and other rules can make it hard to claim the medical expense deduction. At the same time, more types of expenses may be eligible than you might expect. Limits on the [...]
Tax Filing Update for Pass-Through Entities
Do you operate a business as a partnership, a limited liability company (LLC) treated as a partnership for tax purposes or an S corporation? In tax lingo, these are called “pass-through” entities because their taxable income items, tax deductions and tax credits are passed through to their owners and taken into account on the owners’ federal [...]
Get the Lowdown on Your M&A Target’s Financial Records
Do your company’s 2026 strategic plans include a business acquisition? Whether you already have your eye on a target or are still weighing options, plan now for extensive financial due diligence. To help ensure a successful transaction, it’s critical to review a seller’s statements and other records for signs of owner or employee fraud. Subtle [...]
If You Suffered a Disaster, You May Be Eligible for a Casualty Loss Tax Deduction
Every year, severe storms, flooding, wildfires and other disasters affect millions of taxpayers. Many experience casualty losses from damage to their homes or personal property. The One Big Beautiful Bill Act (OBBBA), signed into law last year, generally made permanent the Tax Cuts and Jobs Act (TCJA) limitation on the personal casualty loss tax deduction. [...]
Not All “Business” Expenses are Tax Deductible
With 2025 in the rear view mirror and the tax filing deadline on the road ahead, it’s a good time for businesses to start gathering information about their deductible expenses for 2025. But what’s deductible (and what’s not) might not be as clear-cut as you think. Most business deductions aren’t specifically listed in the Internal [...]
Demystifying Discount Rates Used in Business Valuations
Valuation professionals often use discounted cash flow (DCF) techniques to determine the value of a business or estimate economic losses. A critical input in a DCF model is the cost of capital — the rate that’s used to discount future earnings to today’s dollars. Modest changes in this rate can have a major impact on [...]
A New Year Means New Tax Figures for Individuals
Many tax figures are annually adjusted for inflation and typically increase each year (or at least every few years). For 2026, some additional changes are going into effect under the One Big Beautiful Bill Act, signed into law July 4, 2025. Here’s an overview of some important limits and other tax figures for 2026. Keep [...]
Keep “Put it on my Tab” from Becoming a Problem for Your Business
Does your business let regulars run tabs? Customers who maintain tabs in restaurants, bars and retail shops are often profitable, and it may be in your best interest to offer them credit. Yet unpaid balances, informal notes and missing records can quickly become unmanageable — and unprofitable. So it’s important to monitor customer credit, set [...]
Important 2026 Tax Figures for Businesses
A new year brings many new tax-related figures for businesses. Here’s an overview of key figures for 2026. Be aware that exceptions or additional rules or limits may apply. Depreciation-related tax breaks Bonus depreciation: 100% Section 179 expensing limit: $2.56 million Section 179 phaseout threshold: $4.09 million Qualified retirement plan limits 401(k), 403(b) and 457 [...]
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.
