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Put the Brakes on Lapping Schemes
Lapping is one of the most common ways crooked employees skim money from their employers. In these schemes, a perpetrator uses receipts from one account to cover theft from another. Here’s what it looks like and how you can put the brakes on lapping schemes. Starting small Lapping scams usually start small, with an employee [...]
Avoid the Wash Sale Rule When Selling Securities
If you’re planning to sell assets at a loss to offset gains that have been realized during the year, it’s important to be aware of, and avoid the wash sale rule. Avoid the wash sale rule: How the rule works Under this rule, if you sell stock or securities for a loss and buy substantially [...]
Cost Segregation Studies Accelerate Depreciation
Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of cost [...]
Importance of an Estate Plan
Despite what you might think, the importance of an estate plan isn’t limited to only the rich and famous. In fact, your family is likely to benefit from a comprehensive plan that divides your wealth, protects your well-being and provides a compass for your family’s future. Dividing your wealth Estate planning is often associated with [...]
Varying Capital Gains Rates
(This is Blog Post #659)
Using Benford’s Law to Find Fraud
Benford’s Law is a long-standing statistical precept that remains as relevant and widely accepted in fighting fraud as ever. By using Benford's Law to find fraud, experts can cut down fraudsters who unknowingly reveal their wrongdoings in dubious digits. Historical background The rule is named for Frank Benford, a physicist who noted that, in sets [...]
Beware Tax-Related Scams
“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. Criminals can contact victims through regular mail, telephone calls and email messages. Beware tax-related scams by being aware of these two scams the tax agency has seen in recent months. Fake property liens. A tax bill [...]
Estate Tax Relief for Family Businesses
Fewer people currently are subject to transfer taxes than ever before. But gift, estate and generation-skipping transfer (GST) taxes continue to place a burden on families with significant amounts of wealth tied up in illiquid closely held businesses, including farms. Fortunately, Internal Revenue Code §6166 provides some estate tax relief, allowing the estates of family business [...]
The Truth About the Fed’s Rate Cuts
Mike Maloney, the owner of GoldSilver.com is doing a great service by releasing regular video clips which analyze and comment on the economy in a way you’re just not going to hear on main stream media. Mike’s latest video entitled “The Truth about the Fed’s Rate Cuts” (released November 11, 2019) is actually not about [...]
U.S. Economy is a House of Cards Built on Unsustainable Debt
As posted to the David Stockman YouTube Channel on 11/12/19 David Stockman appears on RT's "The News with David Sanchez" to discuss the recent decision by the Fed to add money to the financial system through the repo markets. Also discussed is the fact that we are at the top of the longest business cycle [...]
Encourage Sales Staff to Walk an Ethical Line
When market competition heats up, you might provide extra incentives for your sales staff to perform. But be careful: Some employees may step over the line — to earn bigger bonuses or out of enthusiasm for the challenge — and use unethical sales tactics. Take steps to ensure your salespeople always walk an ethical line [...]
Controlling Unemployment Tax Costs of Your Business
As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer [...]
Gift Tax Exclusion Rules are Advantageous
As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. The gift tax exclusion rules are advantageous as they give taxpayers the ability to transfer substantial amounts free of gift taxes to their children and others each year. The amount is adjusted for inflation [...]
Business Owners Should be Prepared for IRS Audits
Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations and high-income individuals are more likely to be audited but, overall, audit rates are historically low. [...]
Typosquatters Profit from Common User Errors
The Web has opened plenty of new avenues for criminal behavior. For example, you may have heard of cybersquatting. Someone registers a site’s domain name that includes a trademark and then tries to profit by selling that name to the trademark owner. But are you familiar with typosquatting? You should be because typosquatters profit from common [...]
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.
