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2017 – 06/12 – Dot the “i’s” and cross the “t’s” on loans between your business and its owners





Treating transfers of money between a closely held business and its owners as loans can provide tax advantages. But the IRS looks closely at such transactions, so it’s critical to establish that the transaction is truly a loan by 1) executing a promissory note, 2) charging a reasonable rate of interest, 3) establishing and following a fixed repayment schedule, 4) securing the loan using appropriate collateral, 5) treating the transaction as a loan in the company’s books, and 6) making reasonable efforts to collect in case of default. Contact us for more details.

2017 – 06/07 – Business owners: Put your successor in a position to succeed





Transitioning your company to a successor means becoming a mentor. As such, you’ll have to communicate clearly, be patient and know what you’re trying to accomplish. For starters, identify various ways to pass along your knowledge. Consider, for instance, a formal training program. Have your successor work in each business department or area. Also, encourage him or her to join trade associations and network with executives in your industry and others. Please contact our firm for more help maximizing the effectiveness of your succession plan.

2017 – 07/03 – Keep real estate separate from your business’s corporate assets to save tax





Many businesses operate as C corporations so they can buy and hold real estate just as they do equipment, inventory and other assets. But this can be a costly mistake: If the real estate is sold, any profit is subject to double taxation, first at the corporate level and then at the owner’s individual level on distributions. If real estate is held instead in a pass-through entity, such as a limited liability company (LLC), and then leased to the corporation, profit on a sale of the property is taxed only once, at the individual level. Contact us for details.

2017 – 06/28 – Why business owners should regularly upgrade their accounting software





Years ago, all a business owner needed was a big, leather-bound ledger on the desk. These days, regularly upgraded accounting software is a must. Why? As a system ages, bad data can build up and adversely affect financial reporting. Ever heard the term “garbage in, garbage out”? It’s true. In addition, by regularly upgrading your accounting software, you may be able to identify better ways to manage expenses and handle internal controls. Let our firm help you set a budget for regular upgrades and choose the products that best suit your company’s needs.

2017 – 07/17 – 3 midyear tax planning strategies for business





It’s unclear whether tax reform will be passed this year, so let’s look at three midyear business tax strategies inspired by the last major tax law, the PATH Act of 2015: 1) Buy equipment. The PATH Act preserved generous limits for the Section 179 expensing election and the availability of bonus depreciation. 2) Ramp up research. After years of uncertainty, the PATH Act made the research credit permanent. 3) Hire workers from “target groups.” The PATH Act extended the Work Opportunity credit for such hires through 2019. Contact us for details on these breaks.

2017 – 05/08 – Operating across state lines presents tax risks — or possibly rewards





Operating in another state might mean being subject to taxation there, generally if you have nexus with the state. Essentially, “nexus” means a business presence that’s substantial enough to trigger the state’s tax rules and obligations. What activates nexus depends on a state’s chosen criteria. Triggers vary but common ones are employing workers in the state, owning or leasing property there, or maintaining substantial inventory there. Sometimes operating in another state could actually lower your tax liability. Contact us for more info on multistate taxation.

2017 – 06/26 – 3 breaks for business charitable donations you may not know about





Here are three lesser-known income tax breaks for charitable donations by businesses: 1) deduction for donated food that equals the lesser of the food’s basis plus one-half the fair market value in excess of basis or two times the basis, 2) deduction for qualified conservation contributions by qualified C corporation farming and ranching operations of up to 100% of adjusted taxable income, and 3) favorable tax basis rule for shareholders of S corporations that make donations of appreciated property. Think you may be eligible? Contact us to learn more.

2017 – 06/12 – Dot the “i’s” and cross the “t’s” on loans between your business and its owners





Treating transfers of money between a closely held business and its owners as loans can provide tax advantages. But the IRS looks closely at such transactions, so it’s critical to establish that the transaction is truly a loan by 1) executing a promissory note, 2) charging a reasonable rate of interest, 3) establishing and following a fixed repayment schedule, 4) securing the loan using appropriate collateral, 5) treating the transaction as a loan in the company’s books, and 6) making reasonable efforts to collect in case of default. Contact us for more details.

2017 – 06/21 – Seasonal business? Optimize your operating cycle


Cash flow fluctuations are intense for seasonal businesses. If your company defines itself as such, try to optimize your operating cycle. Look carefully at the beginning, middle and end of your cycle, identifying your strategic selling window. Try to stockpile cash received at cycle’s end, and then use those reserves to finance the next cycle. If you need a line of credit, compile a comprehensive loan package. Above all, draft a formal business plan, use financial projections and set budgets. Contact us for help with your distinctive challenges.

2017 – 06/07 – Business owners: Put your successor in a position to succeed


Transitioning your company to a successor means becoming a mentor. As such, you’ll have to communicate clearly, be patient and know what you’re trying to accomplish. For starters, identify various ways to pass along your knowledge. Consider, for instance, a formal training program. Have your successor work in each business department or area. Also, encourage him or her to join trade associations and network with executives in your industry and others. Please contact our firm for more help maximizing the effectiveness of your succession plan.