Yearly Archives 2016

When it comes to structuring a successful M&A transaction, existing trademarks play an important role for both parties involved. Valuing trademark and creating a strategic vision for them can lead to success down the line. Click “Full Article” for details about the importance of trademark due diligence. When companies merge in the 21st Century, it is often to add value through intellectual capital rather than adding additional office space or factories. This is due to the fact that, increasingly, intellectual assets can be worth more than fixed assets when it comes to a company’s value. Consequently, it is no surprise
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The IRS recently published amended final regulations that will allow designated Roth account owners to tailor the tax results from their distributions.  This gives owners of the accounts greater flexibility in personal tax planning.  Here are the details, including an example of how the new guidance can lower taxes on distributions from designated Roth accounts. Does your employer offer a 401(k), 403(b) or governmental 457 plan? If so, you may be able to set up a designated Roth account through your company’s plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of
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Qualifying business vehicle purchases may be eligible for Section 179 depreciation, 50% first-year bonus depreciation and regular depreciation deductions. Combined, these deductions can be substantial. But the favorable tax rules may not last. If you’re considering purchasing an SUV or other heavy vehicle for business, it could make sense to act before year end in case the rules are changed after Election Day. Favorable depreciation rules for business use of “heavy” SUVs, pickups and vans were locked in by the Protecting Americans from Tax Hikes (PATH) Act of 2015. By taking advantage of these rules, you may be able to
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Cybercriminals never seem to give up, and for good reason: Their chances of success make it worthwhile. A recent poll entitled “IT Threats and Data Breaches” found that 94% of companies reported experiencing some form of “external threat.” After spam, the most commonly reported cyberthreats were viruses, worms, spyware, phishing attacks and network intrusion. Although less common, corporate espionage was also reported by nearly one-fifth of survey respondents. As a result, a new industry — employee cybersecurity training — has sprouted up. While it’s true that there will always be employees who will click on anything, it’s still critical for
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Have you met with your tax adviser to plan for 2016? The tax year is almost half over, and several new and expanded tax-saving opportunities are available under recent legislation. Moreover, some tax breaks have been made permanent, adding certainty to a few of your tax planning strategies. Here are some ideas for individuals and small businesses to lower their tax obligations this year.   Numerous tax breaks have been retroactively expanded for 2015 and beyond — or, in some cases, been made permanent — under the Protecting Americans from Tax Hikes (PATH) Act of 2015. Now that the dust
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This election season, Republicans and Democrats don’t seem to agree on much. But 95% of voters — regardless of which U.S. presidential candidate they favor — support American-made products. The vast majority of Americans also favor training programs, trade enforcement, tax incentives and a national strategy to support U.S. manufacturing, according to the Alliance for American Manufacturing. This organization is a not-for-profit, nonpartisan partnership of leading domestic manufacturers and the United Steelworkers labor union. With the momentum that’s building behind the Made-in-America label, it may be time for your business to rethink its supply chain partners and marketing strategy. Assessing
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A change in the rules governing overtime has been coming for two years, with a sneak preview of proposed modifications last year. But on May 18, the Department of Labor (DOL) came out with its new final rules, which take effect on December 1, 2016. The rules will significantly raise the salary level used to determine whether employees are eligible for overtime and will affect more than 4 million salaried employees, according to the DOL. The Obama administration’s goal was to reset the income threshold to the point it would have reached, with period inflation adjustments, had it not been
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Many business owners fail to follow the strict tax rules for substantiating vehicle expenses. But if your business is audited, the IRS will most likely ask for mileage logs if you deducted vehicle expenses — and it tends to be especially critical of the amount deducted if you’re self employed or you employ relatives. While the basics seem simple, there are numerous exceptions. Mileage Logs Taxpayers can deduct actual vehicle expenses, including depreciation, gas, maintenance, insurance and other vehicle operating costs. Or they can use the standard mileage method, which allows a deduction based on the standard rate for each
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Congress originally devised the alternative minimum tax (AMT) rules to ensure that high-income individuals who take advantage of multiple tax breaks will owe something to Uncle Sam each year. In recent years, however, that concept has eroded. Now, even upper-middle-income taxpayers are likely to owe the AMT. Here’s an overview of how the AMT works and possible ways to minimize it. AMT Basics Think of the AMT as an alternate set of tax rules that are similar to the regular federal income tax system. But there are key differences. For example, under the AMT rules, certain types of income that
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There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. The courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments in some cases. As such, the withdrawals triggered capital gains and taxable dividends for the shareholders. Corporate Distribution Basics Non-liquidating distributions paid by C corporations to individual shareholders can potentially fall into three different layers for federal income tax purposes. Withdrawals from each layer have different tax consequences. First Layer: Taxable Dividends to Extent of Earnings and Profits. Corporate distributions of cash or
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