Employees Donate School Supplies to At Risk Youth

Henry & Horne team members collected over 800 items for a back-to-school drive to benefit Youth and Families First. From backpacks, notebooks and calculators to binders, tissues and plastic bags, our team members overwhelmingly showed their generosity by donating so many supplies. Youth and Families First is a non-profit direct services provider. The organization provides …

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Are You Subject to the California Franchise Tax?

In today’s economic environment, States are finding themselves with budget shortfalls and California is among them. With that said, the state is aggressive in its attempts to tax. The California franchise tax generally imposes a minimum tax of $800 on entities doing business in California and is measured by the income of the current taxable year …

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Determination Letters Will Not be Issued for 403(b) Plans

In April 2013, the IRS issued Revenue Procedure 2013-22 which provided much needed clarification regarding the fate of 403(b) determination letters. Prior to this, it was believed that the IRS would adopt a system of determination letters, similar to those issued for 401(k) plans. Revenue Procedure 2013-22 states that determination letters will not be issued …

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Fixed Asset Tracking: Why Software is Important

It may seem relatively simple at first to track your assets using an Excel spreadsheet and a couple of formulas to calculate depreciation. How could this create issues down the road? As your business grows, and more assets are acquired, the accuracy of your asset valuation could be steadily decreasing. There are multiple vulnerabilities associated …

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Considerations in valuing a non-compete agreement

Non-compete agreements are often implemented when a business is purchased to prevent the seller from competing with the purchaser. These agreements, referred to as Covenants Not to Compete, contain restrictions which often include a specified length of time and geographic area in which the seller is prohibited from competing with the purchaser. These agreements are …

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Converting a C Corporation to an S Corporation: Potential Tax Implications

In recent years, the number of companies converting from C corporation status to S corporation status has increased dramatically. One of the main reasons is to avoid double taxation. C corporations are taxed at the corporate level for federal income tax purposes. Additionally, the C corporation shareholders are also taxed on any capital gains realized …

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Mid-Year Tax Planning Tips

Summer is the perfect time to begin your year-end tax planning so that you have time to identify the strategy (or strategies) that work for you and implement them well before year end. Try to avoid the new 3.8% net investment income tax (NIIT). It only affects higher-income individuals, but that can include anyone who …

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Is it time to update your buy/sell agreement?

I am often asked to review the provisions in a buy/sell agreement related to the question as to how value is determined. This sometimes occurs when there is a triggering event. Unfortunately, in those circumstances, we simply determine value based on the agreement. Sometimes the resulting value is favorable to one party to the detriment …

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Proposed Simplification of Education Tax Breaks: The Good and the Bad

With the cost of education climbing and more students graduating with record student loan debt, many college students and families unintentionally miss out on education tax breaks because of the complexity of tax-based student aid. In 2013, families with college students could benefit from the American Opportunity Credit (AOTC), the Lifetime Learning Credit, or the …

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Unused ITINs to Expire after Five Years

The IRS announced on Monday, June 30 that unused Individual Taxpayer Identification Numbers (ITINs) will expire if they have not been used on a federal income tax return for five consecutive years. ITINs are issued to United States taxpayers who are not eligible for a Social Security Number, such as resident or non-resident aliens. If …

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