When do valuable gifts to charity require an appraisal?
If you donate valuable items to charity and you itemize deductions on your tax return, you may be required to get an appraisal. The IRS requires donors and charities to supply certain information to prove their right to deduct contributions. Questions? Contact the CPAs and tax advisors at SEK for more information.
Daryl Staley Named 2024 Young Leader Award Winner
The Pennsylvania Institute of Certified Public Accountants (PICPA) has selected Daryl Staley, CPA, MBA, Member of the Firm at SEK, CPAs & Advisors as a Young Leader
What’s the difference between a calculation of value and a conclusion of value?
Valuing a business takes time and money. Sometimes a limited-scope “calculation of value” may be appropriate. But taking shortcuts can be costly in other situations. A full-blown “conclusion of value” is generally more credible, so it’s advisable for litigation purposes and often required for tax filings and valuations prepared for Small Business Administration programs. Contact the CPAs and business advisors at SEK to determine what’s appropriate for your situation, based on the intended uses of the valuation, access to the company’s financial records, and time and resource constraints.
The tax advantages of including debt in a C corporation capital structure
Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corp that needs more capital. Be aware that the federal tax code treats corporate debt more favorably than corporate equity. So for shareholders of closely held C corps, it can be a tax-smart move to include in the corporation’s capital structure some third-party debt (owed to outside lenders) and/or some owner debt. The reasons have to do with the income tax rate, the capital gains / dividend tax rate and the double taxation that occurs when a corporation pays tax on its profits and shareholders pay tax again when the profits are distributed as dividends. Contact the CPAs and business tax advisors at SEK about your situation.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.
Pay attention to the tax rules if you turn a hobby into a business
Many people dream of turning a hobby into a business. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. Contact the CPAs and tax advisors at SEK for help and to answer your tax questions.
Growing your business with a new partner: Here are some tax considerations
There are several financial and legal implications when adding a new partner to a partnership. Although the entry of a new partner may seem simple, you should plan properly to avoid tax problems. Contact the CPAs and business tax advisors at SEK for more information and to answer your tax questions.
Who are your customers? QuickBooks Online can tell you
Creating comprehensive, accurate customer profiles in QuickBooks Online takes time.
Are your volunteers risking legal and tax liability?
Nonprofit leaders need to ensure their organizations carry adequate insurance and have risk mitigation policies in place. They also need to ensure that volunteer s are reimbursed only for actual out-of-pocket expenses they’ve incurred on behalf of the organization. Otherwise, reimbursements could be considered taxable income. Contact the CPAs and business advisors at SEK for more information.
Taxes when you sell an appreciated vacation home
If you’re selling a vacation home at a profit, what will you owe in taxes? It depends on whether you’ve used the home as your principal residence for a time or whether you’ve rented it out. If you haven’t done either, the principal home sale gain exclusion tax break (up to $250,000 or $500,000 for a married couple) is unavailable. Other rules apply to a home used as a rental or principal residence. Contact the CPAS and tax advisors at SEK about your situation.