What’s the difference between a calculation of value and a conclusion of value?
Valuing a business takes time and money. Sometimes a limited-scope “calculation of value” may be appropriate. But taking shortcuts can be costly in other situations. A full-blown “conclusion of value” is generally more credible, so it’s advisable for litigation purposes and often required for tax filings and valuations prepared for Small Business Administration programs. Contact the CPAs and business advisors at SEK to determine what’s appropriate for your situation, based on the intended uses of the valuation, access to the company’s financial records, and time and resource constraints.
The tax advantages of including debt in a C corporation capital structure
Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corp that needs more capital. Be aware that the federal tax code treats corporate debt more favorably than corporate equity. Contact the CPAs and business tax advisors at SEK about your situation.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.
Pay attention to the tax rules if you turn a hobby into a business
Many people dream of turning a hobby into a business. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. Contact the CPAs and tax advisors at SEK for help and to answer your tax questions.
Growing your business with a new partner: Here are some tax considerations
There are several financial and legal implications when adding a new partner to a partnership. Although the entry of a new partner may seem simple, you should plan properly to avoid tax problems. Contact the CPAs and business tax advisors at SEK for more information and to answer your tax questions.
Who are your customers? QuickBooks Online can tell you
Creating comprehensive, accurate customer profiles in QuickBooks Online takes time.
Are your volunteers risking legal and tax liability?
Nonprofit leaders need to ensure their organizations carry adequate insurance and have risk mitigation policies in place. They also need to ensure that volunteers are reimbursed only for actual out-of-pocket expenses they’ve incurred on behalf of the organization. Otherwise, reimbursements could be considered taxable income. Contact the CPAs and business advisors at SEK for more information.
Taxes when you sell an appreciated vacation home
If you’re selling a vacation home at a profit, what will you owe in taxes? It depends on whether you’ve used the home as your principal residence for a time or whether you’ve rented it out. If you haven’t done either, the principal home sale gain exclusion tax break (up to $250,000 or $500,000 for a married couple) is unavailable. Other rules apply to a home used as a rental or principal residence. Contact the CPAS and tax advisors at SEK about your situation.
Challenges of valuing family-owned businesses
Family businesses bring valuation challenges. Although roughly 80% to 90% of all businesses in North America are family owned (according to the Family Business Alliance), most of these entities aren’t run like public companies. The differences may require adjustments. Contact the CPAs and business advisors at SEK for help determining what’s appropriate in your case.