Tax reform and the impact on divorce

With the passage of the Tax Cuts and Jobs Act (TCJA) in December 2017, most people have heard about the changes in tax brackets, the elimination of exemptions, the reduced tax rate for corporations and the qualified business deduction for certain passthrough entities. For those in the midst of divorce, or contemplating a divorce, the …

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Subsequent events in the world of business valuation

The valuation of a business is prepared as of a certain date in time. This could be any date, often determined by the purpose of the valuation. A valuation prepared for estate tax purposes is as of the date of death. A valuation for divorce purposes is often the date of service. The valuation date …

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How to market your business for a potential sale

Recently, a number of clients have engaged us to value their business because they do not have a firm grasp of what their company is worth and they are considering selling their interest in the near future. After we performed the assignment and met with the client to discuss the value drivers of their business, …

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Who are the buyers for your business?

There is a reason it is called exit planning – there are steps required for you to ultimately leave the company you have built. One-step is to understand who will be on the other side of the negotiation table in a potential transaction. In most cases, there are five types of buyers in the market …

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CPAs who testify – can they be advocates for their clients?

I was approached by a prospective client a few years ago requiring forensic accounting services in connection with his divorce. The prospective client made it clear to me what his ultimate objective was. He told me, “I want you to review documents I’m going to show you and conclude with me that my wife stole …

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Testifying for the first time – minimizing the jitters

In my former life – that is, before I became an accountant – as a police patrolman and detective on the Tucson, Arizona Police Department, I had the opportunity to testify on several criminal-type cases. Back in those days I would get pretty nervous before each of my court appearances. The mere pressure of waiting …

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Lack of succession plans in family owned businesses

According to a recent PricewaterhouseCoopers (PwC) report, only 23% of family owned businesses have succession plans in place that include a documented plan, not just thoughts in the owner’s head. In PwC’s 2012 survey, 52% of family run businesses planned to pass the business to the next generation, with only 12% planning to sell the …

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Arizona population projections, marriages and divorces

A report from the CDC/NCHS (*), National Vital Statistics System (See Table 1) has disclosed some interesting facts about population, marriages and divorces covering our 50 states and the District of Columbia. Marriage and Divorce The national average of divorce to marriages per 1,000 total population is 45.6% (**). When it comes to divorce, Arizona …

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Brexit and Bankruptcy

How can a macro-economic event, such as when the United Kingdom voted to exit the European Union, impact everyday people and corporations and help them emerge from bankruptcy protection in the United States? When the UK voted to exit the EU, this caused a significant panic in the investment community, particularly investments in foreign stocks. …

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