Insights


NEWS

3 Midyear Tax Planning Strategies for Business

3 Midyear Tax Planning Strategies for Business

Tax reform has been a major topic of discussion in Washington, but it’s still unclear exactly what such legislation will include and whether it will be signed into law this year. However, the last major tax legislation that was signed into law — back in December of 2015 — still has a significant impact on tax planning for businesses. Let’s look at three midyear tax strategies inspired by the Protecting Americans from Tax Hikes (PATH) Act: 1. Buy equipment. The PATH Act preserved both the generous limits for the Section 179 expensing election and the availability of bonus depreciation. These breaks generally apply to qualified fixed assets, including equipment or machinery, placed in service during the year. For 2017, the maximum Sec. 179 deduction is $510,000, subject to a $2,030,000 phaseout threshold. Without the PATH Act, the 2017 limits would have been $25,000 and $200,000, respectively. Higher limits are now permanent and subject to inflation indexing. Additionally, for 2017, your business may be able to claim 50% bonus depreciation for qualified costs in excess of what you expense under Sec. 179. Bonus depreciation is scheduled to be reduced to 40% in 2018 and 30% in 2019 before it’s set to expire on December 31, 2019. 2. Ramp up research. After years of uncertainty, the PATH Act made the research credit permanent. For qualified research expenses, the credit is generally equal to 20% of expenses over a base amount that’s essentially determined using a historical average of research expenses as a percentage of revenues. There’s also an alternative computation for companies that haven’t increased their research expenses substantially over their...
Business Valuation Part 1: Levels of Value

Business Valuation Part 1: Levels of Value

This is Part 1 of a four part series that will serve as a valuation primer. The purpose of Part 1 is to give an overview of common terms and methods used to value an equity interest in a company.

The issue we are trying to resolve when valuing a business is the price that two independent parties would pay for or be willing to receive for the interest they hold. The value of a business interest depends on the future benefits that will accrue to it.  The financial benefits from ownership must come from one of the following sources: distribution of earnings, from the sale of the interest, or distribution from the liquidation of assets.  In determining the value of a business interest, one should focus on the benefits the shareholder(s)/member(s) may receive from long-term ownership in the securities. In appraisal terminology, these three sources of return correspond to the income, market, and adjusted net asset value approaches, respectively.

What is a Business Valuation?

What is a Business Valuation?

A business valuation, or also sometimes referred to as a business appraisal, is a formal process to inform a business owner or a shareholder of the value of their interest in the company. A company can take many different forms and hold a variety of assets or perform a variety of services but a business valuation can use the information provided by a company to give an opinion of the value of that business.

Claiming a Federal Tax Deduction for Moving Costs

Claiming a Federal Tax Deduction for Moving Costs

Summer is a popular time to move, whether it’s so the kids don’t have to change schools mid-school-year, to avoid having to move in bad weather or simply because it can be an easier time to sell a home. Unfortunately, moving can be expensive. The good news is that you might be eligible for a federal tax deduction for your moving costs. Pass the tests The first requirement is that the move be work-related. You don’t have to be an employee; the self-employed can also be eligible for the moving expense deduction. The second is a distance test. The new main job location must be at least 50 miles farther from your former home than your former main job location was from that home. So a work-related move from city to suburb or from town to neighboring town probably won’t qualify, even if not moving would increase your commute significantly. Finally, there’s a time test. You must work full time at the new job location for at least 39 weeks during the first year. If you’re self-employed, you must meet that test plus work full time for at least 78 weeks during the first 24 months at the new job location. (Certain limited exceptions apply.) What’s deductible So which expenses can be written off? Generally, you can deduct transportation and lodging expenses for yourself and household members while moving. In addition, you can likely deduct the cost of packing and transporting your household goods and other personal property. And you may be able to deduct the expense of storing and insuring these items while in transit. Costs related to...

EVENTS

WEBINARS

Benchmarking Your Key Performance Indicators

Benchmarking Your Key Performance Indicators

Many practice managers do not perform any kind of benchmarking and therefore never realize the true potential of their practice. With minimal improvements, a practice can see a significant increase in cash flow and a better bottom line.

Healthcare Denial Management

Healthcare Denial Management

Think your medical practice has a healthy revenue cycle? If you haven’t focused—really focused—on insurance denials, then think again. Denials might be the most underestimated and poorly understood sources of significant cash leakage from your practice’s revenue cycle.

Front Office Success

Front Office Success

Your front office is action-central for patient service and efficient patient flow. Hang on to your seats for this entertaining but illuminating webinar at how to prevent service breakdowns and blunders at this critical crossroads.

Meaningful Use: The Insanity Continues

Meaningful Use: The Insanity Continues

Don’t miss this webinar on the new changes to the meaningful use regulations. Many of these changes are beneficial and will relieve some pressures that practices were facing to manage compliance and reporting requirements.