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More Individuals with Disabilities will be Eligible for Tax-Advantaged ABLE Accounts in 2026
Did you know there’s a tax-advantaged way to save for the expenses of a person with a disability that’s similar to saving for college expenses with a Section 529 plan? Achieving a Better Life Experience (ABLE) accounts can help fund qualified disability expenses for an eligible beneficiary. The SECURE 2.0 Act, signed into law in [...]
Avoiding Inadvertent S Corp Termination
S corporation structure provides most of the tax benefits of a partnership plus the liability protection of a corporation. But because of the strict requirements that apply to these entities, preserving S corporation status requires due diligence. Reap the benefits Like a traditional C corporation, an S corporation shields its shareholders from personal liability for the corporation’s [...]
Special Considerations When Valuing Start-up Businesses
Valuing an established business typically starts with analyzing historical financial performance. However, most start-ups have never generated positive cash flow (or even revenue), which presents unique challenges. Applying standard valuation approaches without accounting for a start-up’s limited operating history can lead to results that are misleading or unsupportable. So, business valuation professionals tailor their analyses [...]
Changes to Charitable Donation Deductions Beginning in 2026
Beginning in 2026, individuals who itemize deductions and donate to charity will face a new limit on their charitable deductions. And in some cases, they’ll face two new limits. But there’s some good news for non-itemizing individuals who make charitable donations. New charitable deduction floor Under the One Big Beautiful Bill Act (OBBBA), starting in [...]
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 [...]
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.
