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When Long-Tenured Employees Commit Fraud
In many occupational fraud incidents, the perpetrator is a long-tenured, well-liked and high-performing employee. In part, that’s because many organizations ignore red flags when employees have impeccable records — which makes it easier for them to commit illegal activities. In such situations, misplaced trust becomes a vulnerability. How can you rely on your employees yet [...]
Understanding Spousal IRAs: A Smart Retirement Strategy for Couples
Retirement planning is essential for all families, but it can be especially critical for couples where one spouse earns little to no income. In such cases, a spousal IRA can be an effective and often overlooked tool to help build retirement savings for both partners — even if only one spouse is employed. It’s worth [...]
Tap Into the 20% Rehabilitation Tax Credit for Business Space Improvements
If your business occupies a large space and you’re planning to relocate, expand or renovate in the future, consider the potential benefits of the rehabilitation tax credit. This could be particularly valuable if you’re interested in historic properties. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building [...]
Fine-Tuning the Financials: 4 Common Adjustments When Valuing a Business
Estimating a company’s value requires more than just reading its income statement or balance sheet. Valuation professionals look beyond historical results to assess future potential. To do that, your expert may make targeted financial statement adjustments to more accurately reflect the economic reality of the business. Here are four types of adjustments valuators may consider: [...]
Milestone Moments: How Age Affects Certain Tax Provisions
They say age is just a number — but in the world of tax law, it’s much more than that. As you move through your life, the IRS treats you differently because key tax rules kick in at specific ages. Here are some important age-related tax milestones for you and loved ones to keep in [...]
Startup Costs and Taxes: What You Need to Know Before Filing
The U.S. Census Bureau reports there were nearly 447,000 new business applications in May of 2025. The bureau measures this by tracking the number of businesses applying for an Employer Identification Number. If you’re one of the entrepreneurs, you may not know that many of the expenses incurred by start-ups can’t currently be deducted on [...]
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, [...]
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.
