Although there are legitimate reasons for some Maine business entities to choose a partnership structure, partnership status may be undesirable for certain activities involving more than one co-owner. Here are some tax-related reasons to avoid partnership status for your business: Tax elections. If a partnership exists, certain tax elections must be made at the partnership level  Continue Reading »

The U.S. Supreme Court adjourned for its summer recess at the end of June. Here are five recent cases from its 2016 term that may be of interest to business owners and managers. 1. Advocate Health Care Network v. Stapleton (S. Ct. No. 16-74, June 5, 2017) Generally, employees are protected from unexpected losses in their retirement  Continue Reading »

Estate of Giustina v. Commissioner, 2016 Tax Ct. Memo LEXIS 113 (June 13, 2016) (Giustina III) In an estate tax dispute that has lasted for over five years, the Tax Court revalued the decedent’s minority interest in an Oregon family business by order of the 9th Circuit Court of Appeals. The recalculation proved a boon  Continue Reading »

Recently, it was ruled by the U.S. Tax Court that the Boston Bruins hockey team’s pregame meals to players and personnel at out-of-town hotels qualified as a de minimis fringe benefit under the Internal Revenue Code. Therefore, 100% of the cost of those meals could be deducted, and it wasn’t subject to the 50% tax  Continue Reading »

Starting up a small business in Maine and wondering about how tax deductions will be handled? It’s very important to remember that most expenses incurred before a business begins functioning cannot be deducted or amortized until the year when the business does become active. The Basics of Business Expenses Section 162 of the Internal Revenue  Continue Reading »

From time to time, every small business owner wonders what the value of their business is. The correct answer can vary, depending on the purpose of the appraisal. Different rules and standards of value may apply in different circumstances. Some of the reasons a business owner may want a valuation include: General business planning, planning  Continue Reading »

Do you know what to do if you discover an error on a previously filed individual tax return? For instance, you might have missed some tax-saving deductions and credits on your 2016 personal federal income tax return that you filed in February. Or you might have recently discovered that you failed to claim some legitimate tax  Continue Reading »

In re ISN Software Corp. Appraisal Litig., 2016 Del. Ch. LEXIS 125 (Aug. 11, 2016) A recent request for statutory appraisal prompted a familiar lament from the Delaware Court of Chancery about the questionable reliability of expert valuations. Three experts presented value conclusions that were eons apart. The court declined to adopt any one opinion  Continue Reading »

Historic performance does not directly determine the value of a business. Instead, investors are more interested in the future economic benefits the business will generate. Past performance is only relevant to the extent that it demonstrates trends and is expected to continue going forward. This forward-looking approach applies whether an appraiser uses the cost, market  Continue Reading »

The IRS recently explained a simplified method for claiming the home office deduction that offers a time-saving option. However, many taxpayers who maintain a home office fare better tax-wise by deducting expenses under the regular method, and others may not be eligible to deduct any home office expenses. Here’s why. Regular and Exclusive Use There  Continue Reading »