Chapter 11 Bankruptcy Gives Companies Breathing Room
In an uncertain economy, many companies seek a fresh start under Chapter 11 bankruptcy proceedings if they think they could be profitable by getting relief from their debts. Generally, filing Chapter 11 is done voluntarily by a company to protect itself from creditors. It’s different from Chapter 7, which involves liquidating or selling off the…
Disaster Recovery: Ask ‘What If?’
Disasters never happen at a good time. But the timing is irrelevant. What counts is that your nonprofit can recover quickly with minimal long-term effects. And that means having a disaster recovery program in place so that your nonprofit is well-positioned to respond to — and rebound from — a wide range of calamities. The…
Is Your Nonprofit Organization in Survival Mode?
Nonprofits have at least one thing in common with for-profits: Only the strong survive. The nonprofit sector is extremely competitive and even a relatively small shift of fortunes can threaten an organization’s future. When events such as the death of a major donor or the loss of grants, organizations turn to their leaders to minimize…
One Option to Finance a Business Sale
Structured settlements are commonly associated with the payment of personal injury damages because of their advantageous tax-free treatment, but some business purchases and buyouts can also benefit from structured settlements using annuity payments from an insurance company. While payments from these non-personal injury cases are not tax-exempt, the recipient only owes taxes on the amount…
Claiming Your Parent as a Dependent
If you pay over half the cost of supporting a parent, he or she is considered your dependent for federal income tax purposes — which may qualify you to some significant tax breaks. Here are the details. New Credit for a Dependent Parent For 2018 through 2025, your dependent parent may qualify you for a…
Expanding Retirement Plan Options for Small Businesses
A new final rule from the U.S. Department of Labor (DOL) clarifies some of the ins and outs of multiple employer plans (MEPs). These are defined contribution retirement plans — such as 401(k) plans — that are sponsored by an association or employer group on behalf of member employers. Clarifying the Rules Existing DOL rules…
D&O Insurance: Protect Directors and Officers from Personal Loss
The volume of corporate litigation is an ongoing concern. In recent years, there has also been a global trend to hold individuals accountable for their actions. For stockholders, employees, customers and clients who feel they have been wronged, finding the guilty party and holding them accountable can often be accomplished by filing a lawsuit. Given…
The Use of Quick-Closeout Procedures
Do you have U.S. government cost-reimbursable or time-and-materials contracts, task orders or delivery orders that are physically complete awaiting audit and establishment of indirect rates for your final fiscal year of contract performance? If so, you may qualify for use of quick-closeout procedures. The Federal Acquisition Regulation (FAR) 42.708, Quick-closeout Procedure, requires the contracting officer…
Why Have a Business Valued?
Most business owners are reactive when it comes to having their businesses valued. But it sometimes pays to be proactive. Some valuations are necessities, such as for determining the value of the business interest in an estate. Others are obtained for more elective reasons but are helpful to business owners nevertheless. It is a good…
Update on the New Business Interest Expense Limitation
The Tax Cuts and Jobs Act (TCJA) imposes a new limitation on deductions for business interest expense. The IRS recently issued guidance in the form of proposed regulations. The business interest expense limitation is a permanent change for tax years that began in 2018. Thankfully, many businesses are unaffected. Here’s what you need to know….