How the IRS Proves Fraud and Why It Can Be Devastating
In general, a tax assessment by the IRS is presumed to be correct. A taxpayer can overcome the presumption with proof. That situation is reversed when the IRS asserts fraud. In those instances, the IRS must prove, by clear and convincing evidence, that fraud exists. Badges of Fraud Tax fraud is a very serious issue….
When Divorced Empty Nesters Remarry
Later-life remarriages differ from earlier-life remarriages — especially when adult children factor into the equation. If you or your parents plan to tie the knot again, here are some roadblocks that might stand in the way of your family’s happily-ever-after. Emotional Issues Marriage is a life-altering commitment. You’re not just merging lives with your spouse…
Buy-Out Provisions Can Cause Higher Valuation
The buy-out provisions in a partnership or membership agreement are designed to maintain control of the firm and help partners cash out their interests. However, those same provisions can be used in ways that you may not have anticipated. For example, the provisions of one law firm’s membership agreement were used to justify a substantially higher…
Real Estate Investors: Let’s Talk about Like-Kind Exchanges
Are you thinking about divesting a real estate investment and then replacing it with another property? If you sell appreciated property outright, you’ll incur a taxable gain, which lowers the amount available to spend on the replacement property. But you may be able to defer your tax bill (or even make it disappear) with a…
Investigate Zoning Laws Before Committing to a Location
Location, location, location. You know how important it is for your business. So when choosing a location, you probably research foot traffic, car traffic and the occupancy rates of the neighboring buildings. But if you don’t research zoning laws, all your good business judgment could go to waste. Before you sign a lease or buy…
Time Sheets on the Run
If your employees work at home or move around between locations and if they are paid by the hour, you may be able to use mobile time sheets and Application Service Providers offer them. Basically, you aren’t expected to buy anything other than standard gear such as a mobile phone. While initially developed for blue…
Cell Phone Theft Costs Time and Money
Cell phones are an essential business tool, and while the technology lets you keep in touch 24/7 from nearly any location, there are some serious security issues. As the phones, and telecom-capable personal digital assistants (PDAs), have become increasingly smaller, they have become easier to lose and steal. Moreover, with their growing capabilities for storing…
Keep the Long-Term in Mind When Instituting Changes
Profit growth and business expansion are two key goals for many family businesses. But in order to successfully reach your targets, growth must be controlled. If you allow undisciplined expansion, you run the risk of diluting resources, leaving projects unfinished and destroying morale. Whether you are planning an expansion, developing a new growth strategy or…
Not-for-Profit Volunteer Expenses
Question: Our organization is a 501(c)(3) not-for-profit organization that relies on volunteers. Sometimes our volunteers incur significant transportation and other expenses in connection with the performance of their volunteer services. We would like to pay for some of those expenses, either directly or by reimbursement, to relieve their financial burden. If we do, would the…
No Current Deductions Before Business Commences
Starting up a business and wondering about how tax deductions will be handled? The most important thing to understand is that most expenses incurred before a business begins functioning cannot be deducted or amortized until the year when the business does become active. Business Expense Basics Section 162 of the Internal Revenue Code allows current…