Perks of the job, deductible fringe benefits

Maybe I’m alone in this, but as a sports fan, I sometimes wonder what it might be like to own my own franchise. While the dream is likely just that – a dream (barring some huge Lotto win) – the next logical thing I do as a CPA is think about the various tax implications …

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What is an S Corporation worth? The IRS fight continues

When it comes to the valuation of non-controlling interests in pass-through entities (PTEs) such as a Subchapter S corporation, there have been ongoing disagreements between business valuators and the IRS. The issue is whether and to what extent to offset PTE earnings for income taxes (often termed “tax-affecting”). Doing so reduces the value under the …

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Record retention for net operating losses (NOL)

Individuals are usually familiar with the general rule that they should keep their income tax returns and tax documents used to prepare those returns for 7 years (see our guide). This is the general rule because the IRS has the ability to audit and adjust tax returns for three years from the date you filed …

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Tax trivia – did you know?

Unless you’re a tax professional, the only thing you probably want to know about taxes is how much you owe and how you can save. However, you never know when a little tax trivia might come in handy. Just in case you’re ever on Jeopardy or Who Wants to be a Millionaire, here are some …

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Reviewing and implementing plan level controls

Many payroll companies and third-party administrators (“TPA”) ascertain Service Organization Controls (“SOC 1”) Reports on the Suitability of the Design and Operating Effectiveness of Controls. These reports summarize the opinion and results of the audit of internal controls in place at the service provider. In addition, these reports provide complementary user entity controls, which list …

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Asking the right questions about your WIP schedule

As an auditor of companies in the construction industry, I often ask clients about the performance of specific jobs in their contracts schedule, also known as a WIP schedule or Jobs schedule. The job inquiries are designed to uncover potential contract-related accounting issues that should be corrected for adequate and useful financial reporting. These questions …

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Employee retention strategies – staying engaged

For most companies with 11 or more workers, employee retention can be challenging. Keeping employees engaged and loyal to the company requires methods that may not always be a one size fits all solution. For example, in today’s society, culture plays a large role in how connected employees feel to their company; this can be …

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I have to pay taxes for my household employee?!

Do you have someone that does work around the house for you? Do you know if they are a household employee? If yes, you may be required to report and pay payroll and unemployment taxes. “You have a household employee if you hired someone to do household work and that worker is your employee. The …

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Rental real estate acquisitions: tax implications

I was having a telephone conversation with a friend of mine a couple of weeks ago which nearly always turns into thirty minutes of free tax advice based upon what he has going on in his life. After a few minutes of asking about family, work, and the status of our golf game, this conversation …

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Section 179 deduction – motocross motorhome

How does a motorhome with two beds suitable to accommodate two full grown adults qualify for the Section 179 deduction? Well, according to the IRS, it doesn’t. At least that was the initial verdict passed down to Dave Evans when he tried to claim the motorhome, along with his son’s motocross expenses, on his business …

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