The Tax Court held that a settlement payment received by an S corporation for a trade secret misappropriation lawsuit was taxable as ordinary income. In the case, the corporation entered into a settlement agreement with another company. The S corporation…
Introduction If you live in the U.S. you are well aware of the economic situation. According to The Beige Book, published by The Federal Reserve, nearly every sector of industry and agriculture and every geographical region of the country is…
Q: I just opened a business and formed it as a limited liability company (LLC) under my state’s laws. For federal tax purposes, how do I classify my LLC? A: An LLC may be classified for federal tax purposes as…
This is the fourth in a series of articles outlining the steps any business owner can take to maximize the value of his/her business when it comes time to sell. If you’d like to see previous articles in this series,…
The Tax Court has ruled that a son’s work and aid in a business owned by his parents did not result in taxable compensation, but were instead construed to be a gift. The taxpayer in question worked and aided his…
Introduction The Center recently received a call regarding situations involving minority share stocks and lack of marketability. When businesses are valued, whether that reason is for a business sale, exit planning, or another reason, generally the owner likes to see…
This is the third in a series of articles outlining the steps any business owner can take to maximize the value of his/her business when it comes time to sell. If you’d like to see previous articles in this series,…
Introduction Certain tax deductions are set to expire at year’s end. Among them are the enhanced Section 179 deduction and bonus depreciation. The decisions you make in these final months of 2009 can have a major impact on your taxes…
The annual limit on deductible contributions for Health Savings Accounts (HSA) has been adjusted for inflation for 2010. The limit for 2010 for an individual with self-only coverage through a high-deductible health plan (HDHP) has been raised from $3,000 to…
Q: I am looking to have my company valued. What is the best method available to value a company? A: There is no one method of valuation available that trumps every other method. Under the standards dictating the procedures used…
