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Opening a new location calls for careful planning

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The U.S. economy has been nothing short of a roller-coaster ride for the past year and a half. Some industries have had to overcome seemingly insurmountable challenges, while others have seen remarkable growth opportunities arise. If your business is doing well enough for you to consider adding a location, both congratulations and caution are in order. “Fortune favors the bold,” goes the old saying. However, strained cash flow and staffing… Read More »Opening a new location calls for careful planning

Claiming a theft loss deduction if your business is the victim of embezzlement

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A business may be able to claim a federal income tax deduction for a theft loss. But does embezzlement count as theft? In most cases it does but you’ll have to substantiate the loss. A recent U.S. Tax Court decision illustrates how that’s sometimes difficult to do. Basic rules for theft losses  The tax code allows a deduction for losses sustained during the taxable year and not compensated by insurance… Read More »Claiming a theft loss deduction if your business is the victim of embezzlement

Planning for year-end gifts with the gift tax annual exclusion

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As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or gift tax. The exclusion amount for 2021 is $15,000. The exclusion covers gifts you make… Read More »Planning for year-end gifts with the gift tax annual exclusion

Think like a lender before applying for a business loan

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Commercial loans, particularly small business loans, have been in the news over the past year or so. The federal government’s Paycheck Protection Program has been helpful to many companies, though fraught with administrative challenges. As your business pushes forward, you may find yourself in need of cash in the months ahead. If so, more traditional commercial loan options are still out there. Before you apply, however, think like a lender… Read More »Think like a lender before applying for a business loan

Want to find out what IRS auditors know about your business industry?

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In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use the same guides to gain insight into what the IRS is looking for in terms… Read More »Want to find out what IRS auditors know about your business industry?

You can only claim a casualty loss tax deduction in certain situations

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In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take. What’s considered a casualty for tax… Read More »You can only claim a casualty loss tax deduction in certain situations

5 questions to ask about your marketing efforts

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For many small to midsize businesses, spending money on marketing calls for a leap of faith that the benefits will outweigh the costs. Much of the planning process tends to focus on the initial expenses incurred rather than how to measure return on investment. Here are five questions to ask yourself and your leadership team to put a finer point on whether your marketing efforts are likely to pay off:… Read More »5 questions to ask about your marketing efforts

Getting a divorce? Be aware of tax implications if you own a business

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If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When… Read More »Getting a divorce? Be aware of tax implications if you own a business

Does your employer provide life insurance? Here are the tax consequences

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Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax on income you don’t receive The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything to your income tax bill. But the employer-paid… Read More »Does your employer provide life insurance? Here are the tax consequences

Expanding succession planning beyond ownership

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Business owners are regularly urged to create and update their succession plans. And rightfully so — in the event of an ownership change, a solid succession plan can help prevent conflicts and preserve the legacy you’ve spent years or decades building. But if you want to take your succession plan to the next level, consider expanding its scope beyond ownership. Many companies have key employees, perhaps a CFO or an… Read More »Expanding succession planning beyond ownership