Timing counts when valuing a business
A business’s value may change significantly over time, so it’s important to choose the valuation date carefully. This date serves as a cutoff for the information that can be used to estimate value. In general, events that happen after the valuation date can’t be considered, unless the information was “reasonably known or knowable” on the valuation date. The CPA's and business advisors at SEK can help you determine what’s appropriate based on relevant laws and case facts.
Perform an operational review to see how well your business is running
In M&A, business buyers perform operational due diligence to identify the strengths and weaknesses of a target company’s day-to-day activities. Business owners can perform an operational review to glean the same insights. Business buyers typically evaluate three primary areas: production/operations, selling, general & administrative items, and human resources, to determine the reasonability and sustainability of things such as compensation, benefits and staff relations. Contact the CPA's and business tax advisors at SEK for help performing an operational review and more tax tips.
It’s possible (but not easy) to claim a medical expense tax deduction
Can you deduct your out-of-pocket medical costs on your tax return? It depends. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical costs are deductible only if you itemize, which means that your itemized deductions must exceed your standard deduction. Contact the CPA's and business tax advisors at SEK to asses if you can claim a deduction, for more tax tips or to answer any of your tax questions.
Defer tax with a like-kind exchange
If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Like-kind exchanges can be an attractive tax-deferred way to dispose of real property if you anticipate a large tax bill and meet the requirements. Contact the CPA's and business tax advisors at SEK if you have tax questions or for more tax tips.
Does your nonprofit owe tax on its sponsorships and advertising?
Sponsorship and advertising dollars can provide a real boost to your not-for-profit organization’s income.
SEK announces Manager, Supervisor, Senior, and Marketing promotions
The Members are pleased to announce the following Manager, Supervisor, Senior Staff, and Marketing promotions effective January 1, 2024:
7 Tips for using QuickBooks online in 2024
QuickBooks Online was built for small businesses. You don’t have to be experts in accounting or technology. QuickBooks Online simplifies the complex process of double-entry accounting, using understandable language and a simple, easy to navigate user interface.
Don’t overlook taxes when contemplating a move to another state
When you retire, you may want to move to another state, perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. You should also consider property and sales taxes, as well as any state estate taxes. We can answer any questions and file required tax returns. Contact the CPA's and business tax advisors at SEK for your tax questions, tax updates and more tax tips.
The standard business mileage rate will be going up slightly in 2024
The optional standard mileage rate used to calculate the deductible cost of operating a vehicle for business will be going up slightly in 2024, by 1.5 cents per mile. The standard rate is useful but you still must record certain information, such as the mileage, dates and destinations of trips. Contact the CPA's and business tax advisors at SEK for more financial advice, tax tips and tax updates.