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Is Your Business Partnering with Dishonest Vendors?
Almost all (98%) of respondents to a recent survey conducted by Creditsafe expressed concern about being victimized by vendor fraud. Unfortunately, most business owners and managers aren’t well informed about the signs of this type of scam. However, familiarizing yourself with criminal methods, training employees to spot suspicious activities and working with your financial advisors [...]
Is College Financial Aid Taxable? A Crash Course for Families
College can be expensive. According to the College Board, the average sticker price for tuition and fees at private colleges was $43,350 for the 2024–2025 school year. The average cost for tuition and fees for out-of-state students at public colleges was $30,780. For in-state students, the cost was $11,610. Of course, there are additional costs [...]
DOs and DON’Ts to Help Protect Your Business Expense Deductions
If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting [...]
Why the Standard of Value Matters in Business Valuation
Valuing a private business requires a custom approach. One size doesn’t fit all companies, especially when it comes to the appropriate standard of value. Applying the wrong one can lead to disputes, unfavorable tax and accounting consequences, litigation exposure, and inequitable outcomes. Here’s a breakdown of the three main standards of value, including when they [...]
Are You Missing a Valuable Tax Deduction for Medicare Premiums?
If you’re age 65 or older and enrolled in basic Medicare insurance, you may need to pay additional premiums to receive more comprehensive coverage. These extra premiums can be expensive, particularly for married couples, since both spouses incur the costs. However, there may be a silver lining: You could be eligible for a tax deduction [...]
Some Managers May Direct Employees to Commit Fraud
An often overlooked phenomenon involves employees committing fraud not for personal gain, but out of loyalty, fear or a misplaced belief they’re protecting their boss or company. When employees falsify records or steal, it’s usually assumed they’re trying to enrich themselves. However, some workers commit fraud at the explicit request or implied suggestion of their [...]
Tax Affecting: A Controversial Issue in Pass-Through Business Valuations
Tax affecting is one of the most debated issues when valuing interests in privately held businesses using the income approach. This term refers to discounting the projected earnings of pass-through businesses for hypothetical entity-level taxes. Unlike C corporations, pass-through entities — such as S corporations, partnerships, limited liability companies and sole proprietorships — don’t pay [...]
The Advantages of a Living Trust for Your Estate Plan
Do you believe you don’t need to worry about estate planning because of the current federal estate tax exemption ($13.99 million per individual or $27.98 million for married couples in 2025)? Well, think again. Even with this substantial exemption, creating a living trust can offer significant benefits, especially if your goal is to avoid probate [...]
Planning a Summer Business Trip? Turn Travel into Tax Deductions
If you or your employees are heading out of town for business this summer, it’s important to understand what travel expenses can be deducted under current tax law. To qualify, the travel must be necessary for your business and require an overnight stay within the United States. Note: Under the Tax Cuts and Jobs Act, [...]
The One Big Beautiful Bill Act is Now Law
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, following its approval by the Senate on July 1 and the House on July 3. The legislation’s passage capped a whirlwind of Congressional activity, marked by prolonged debates, unprecedented voting marathons, and numerous negotiations to secure passage in a narrowly [...]
Is Your Construction Business Built on Fraud?
It’s the height of the construction season in most parts of the country and your business probably wants to make the most of it. But rising costs, worker shortages, international tariffs and other pressures may threaten the profitability of your enterprise. The last thing you need is fraud. According to the Association of Certified Fraud [...]
Digital Assets and Taxes: What You Need to Know
As the use of digital assets like cryptocurrencies continues to grow, so does the IRS’s scrutiny of how taxpayers report these transactions on their federal income tax returns. The IRS has flagged this area as a key focus. To help you stay compliant and avoid tax-related complications, here are the basics of digital asset reporting. [...]
Addressing Real Estate Assets When Valuing a Business
It’s important to determine whether a business valuation also calls for a real estate appraisal. While the decision may be relatively straightforward for real estate holding companies, it becomes more nuanced for operating businesses that own or lease real property. In many cases, real estate isn’t just a backdrop for business activity — it’s a [...]
The IRS Recently Announced 2026 Amounts for Health Savings Accounts
The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs). Employees will be able to save a modest amount more in their HSAs next year. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can [...]
How Working in the Gig Economy Affects Your Taxes
The gig economy offers flexibility, autonomy and a way to earn income, but it also comes with tax obligations that can catch many workers off guard. Whether you’re driving for a rideshare service, delivering food, selling products online or offering local services like pet walking, it’s crucial to understand the tax implications of gig work [...]
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.
