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Valuing ESOPs
Employee stock ownership plans (ESOPs) provide tax-saving opportunities for business owners who want to cash out and transfer ownership to employees without immediately giving up control of the business. However, valuing stock held by an ESOP is an ongoing challenge for the fiduciaries who administer them, especially when the sponsoring company is privately held. Valuation [...]
Do You Have to Pay Tax on Social Security Benefits?
Some people who begin claiming Social Security benefits are surprised to find out they’re taxed by the federal government on the amounts they receive. If you’re wondering whether you’ll be taxed on your Social Security benefits, the answer is: It depends. The taxation of Social Security benefits depends on your other income. If your income [...]
Applying the Research Credit Against Payroll Taxes
Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses [...]
Protecting your Business from Organized Crime
During the early stages of the COVID-19 pandemic, many cash-short small businesses turned to their banks, while others sought help from family and friends. Unfortunately, these sources weren’t enough in all cases. When government aid arrived, it was too late for some companies. For others, government loans and grants helped but didn’t fill the cash [...]
Tesla Model Y 4680 Structural Battery Pack Analysis
As posted to the Munro Live YouTube Channel on 7/5/2022 (Run Time 17 min, 23 sec) The team at Munro & Associates just dropped the structural battery pack (with 4680 cells) out of their brand-new Texas-made Tesla Model Y. What they found is something that they've never seen . . . ever. The seats, console, [...]
Legal Protections for Franchise Dealers Against Direct Manufacturer Sales
As posted to CBT News on 6/14/22 (Click Image to View Clip - Run Time: 18 min, 46 sec) Automakers have been making some unprecedented moves with regards to electric vehicles . . . so much so that many franchise dealers are becoming concerned about the future [...]
Ways You Can Stop Tracking Links
As posted to the Naomi Brockwell YouTube Channel on 5/21/22 (Run Time: 9 min, 17 sec) In this informative video, Naomi Brockwell provides a primer on how tracking links work, and offers suggestions for identifying/bypassing them, and using a browser that does the best job at circumventing them. The author's outline of the clip on [...]
IRS Releases Updated Cost Segregation Audit Techniques Guide
On 6/1/22, the IRS made available an update to the "Cost Segregation Audit Techniques Guide" (Publication 5653). Originally issued in 2004, the purpose of the Audit Techniques Guide (ATG) was to offer guidance to IRS auditors auditing cost segregation studies. Because the ATG is an interpretation of the law, as opposed to the law itself, [...]
Is it a Good Time for a Roth Conversion?
The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost. Traditional vs. Roth Here’s what makes [...]
Valuing Synergies
In mergers and acquisitions (M&As), there are some buyers who are willing to pay a premium above the fair market value of the business on a controlling basis. This premium typically is the result of cost-saving or revenue-building synergies that a specific buyer can potentially gain by acquiring the seller’s business. When selling a business, [...]
The Ins and Outs of Series EE Savings Bond Taxation
Many people own Series E and Series EE bonds that were bought many years ago. They may rarely look at them or think about them except on occasional trips to a file cabinet or safe deposit box. One of the main reasons for buying U.S. savings bonds (such as Series EE bonds) is the fact [...]
6 Tips for Foiling Fake Suppliers in Online Marketplaces
Supply chain issues continue to hurt many U.S. businesses — possibly in more ways than you think. Not only do supply shortages and delays make it difficult for companies to ramp up business and recover from the pandemic slowdown, but they also make some fraud schemes easier to perpetrate. For example, criminals might advertise hard-to-get [...]
Partners May Have to Report More Income on Tax Returns than they Receive in Cash
Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why does this happen? It’s due to the way partnerships and partners are taxed. [...]
A Compensation Plan That Rewards Top Talent
(This is Blog Post #1222)
IRA Charitable Donations as an Alternative to Taxable Required Distributions
Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA. When distributions are taken directly out of traditional IRAs, federal income tax of up to 37% in 2022 will [...]
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.
