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Preventing Fraud in Auto Dealerships
Preventing fraud in auto dealerships requires a strong internal control system. This will serve to prevent occupational fraud from cutting into your auto dealership’s profits and generating negative publicity. And effective controls start with current and accurate financial statements. Preventing fraud in auto dealerships starts in accounting One sign of weak internal controls is an [...]
Tax Treatment of New Business Expenses
Have you recently started a new business? Or are you contemplating starting one? Launching a new venture is a hectic, exciting time. Before you even open the doors, you generally have to spend a lot of money on new business expenses. You may have to train workers and pay for rent, utilities, marketing and more. [...]
College Financing in Your Estate Plan
The staggering cost of college makes it critical for families to plan carefully for this major expense. In many cases grandparents want to play a role. As you examine the many financing options for your grandchildren, be sure to consider college financing in your estate plan. Make direct payments A simple, but effective, technique is [...]
Executives: Greatest Occupational Fraud Risk
In its 2018 Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners (ACFE) reported that owners and executives accounted for only 19% of all fraud cases. Yet they caused a median loss of $850,000, vs. a median of $100,000 for rank-and-file employees. As such, they post the greatest occupational [...]
Spendthrift Language Safeguards Trust Assets
Protecting assets from creditors is a critical aspect of estate planning. However, you need to think about more than just your own creditors. You also need to consider your heirs’ creditors. Adding spendthrift language to a trust benefiting your heirs can help safeguard assets. Spendthrift language explained Despite its name, the purpose of a spendthrift [...]
Deducting Business Meals Under TCJA
In the course of operating your business, you probably spend time and money “wining and dining” current or potential customers, vendors and employees. Is deducting business meals still possible? The rules changed under the Tax Cuts and Jobs Act (TCJA), but you can still claim some valuable write-offs. No more entertainment deductions One of the [...]
Deducting Medicare Premiums to Lower Your Tax
Americans who are 65 and older qualify for basic Medicare insurance. However, to get the level of coverage they desire, they may need to pay additional premiums. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But one aspect of paying premiums might be positive. If [...]
1040 Questions After You’ve Filed
Alright . . . you've successfully filed your 2018 return with the IRS. But now, you find that you've may still have some 1040 questions after you've filed. Here are brief answers to three questions that we’re frequently asked at this time of year. 1040 Questions #1: What tax records can I throw away now? [...]
Taxation of Divorcing Business Owners
Taxation of divorcing business owners add complications to an already stressful time. Your marital property will include all or part of your business ownership interest . . . one of your biggest personal assets. Transferring property tax-free You and your ex-spouse can generally divide most assets, without any federal income or gift tax consequences. When an [...]
401k Hackers: Prevent an Account Wipe-Out
News of commercial database hackings may seem commonplace in 2019. But while many of these stories focus on hacked bank and credit card accounts, 401k plan sponsors and participants probably don’t realize that their plan assets also are at risk from 401k Hackers. Employers who offer 401k plans to their employees need to take precautions [...]
Understanding How Taxes Factor Into M&A Transactions
Merger and acquisition (M&A) activity has been brisk in recent years. Is your business is considering merging with or acquiring another business? If so, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, there are basically two ways to structure a transaction: 1. Stock [...]
(#539) Fraud Fun Fact: Crooks Prefer Cash!
It should come as no surprise that cash is the most popular target of fraud perpetrators. After all, once stolen, cash itself is virtually untraceable. But that doesn’t mean forensic accounting professionals can’t unearth cash fraud schemes — and the crooks behind them. 3 Categories of Cash Fraud According to the Association of Certified Fraud [...]
(#538) Properly Funding your Revocable Trust is the Key to Unlocking its Benefits
If your estate plan includes a revocable trust — also known as a “living” trust — it’s critical to ensure that the trust is properly funded. Revocable trusts offer significant benefits, including asset management (in the event you become incapacitated) and probate avoidance. But these benefits aren’t available if you don’t fund the trust. Funding [...]
(#536) You are Programmed to be Poor
As posted to the Be Inspired YouTube Channel on 3/5/19 from original content appearing on the London Real YouTube Channel In this eye-opening interview clip, Robert Kiyosaki explains how you will never learn about money in school. Rather, school was designed to teach you to be an employee or a self-employed person . . . [...]
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.
