Newsletters

Increasing the Value of Your Business

This article deals with the process of increasing business value from the perspective of a buyer of the business. The real value of a business is the amount for which it can be sold. But maximum value is dependent not just on what some buyer will pay, but on selecting the type of buyer that will pay the most. Privately owned businesses are typically sold on the basis of a multiple of earnings. Earnings for this purpose are expressed in a formula called EBITDA (earnings before interest, taxes, depreciation, and…

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Meals and Entertainment: Which Expenses are Still Deductible?

The Tax Cuts and Jobs Act of 2017 (TCJA) slashed many common deductions for business meals and entertainment. Yet a great deal of confusion remains about what is, and is not, deductible. Although most entertainment expenses no longer qualify (with some exceptions), many expenses for business meals continue to be deductible, at least in part. Here’s a quick review. Entertainment The TCJA generally ended the practice of deducting expenses for activities deemed “entertainment, amusement, or recreation.” Also eliminated are club memberships, regardless of how much business may be taken there….

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Taxation of Social Security Benefits

How Social Security benefits are taxed depends on your other income. In the worst case scenario, 85% of your benefits would be taxed. (This doesn’t mean you pay 85% of your benefits back to the government in taxes – merely that you would include 85% of them in your income subject to your regular tax rates.) To determine how much of your benefits are taxed, you must first determine your other income, including certain items otherwise excluded for tax purposes (for example, tax-exempt interest). Add to that the income of…

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Tax Filing Reminders

December 16th  2019 calendar-year corporations fourth installment of estimated income tax December 31st  Deadline to complete 2019 tax-free gifts up to $15,000 per recipient Deadline for paying expenses you want to deduct on your 2019 cash basis income tax return

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