In one significant case, the Tax Court allowed a taxpayer to claim deductions for meals that stretch the limits of the traditional “sleep-or-rest” rule for business travelers. (Bissonnette, 127 TC No. 10) Background Generally, you can deduct 50 percent of your meals and all incidental expenses when you are away from home on business. The  Continue Reading »

In re Eastman Kodak Company, 2013 Bankr. LEXIS 3325 (Aug. 15, 2013) Valuation experts who take on an engagement for which they lack the qualifications or the time risk a tongue-lashing in court, as a recent bankruptcy case demonstrates. This case highlights the importance of having a highly qualified valuation expert. For more on this,  Continue Reading »

If you are a Maine-based business owner and you own commercial property, you’re probably depreciating it over 39 years. That means that every year, you deduct 1/39th of the property’s value (excluding land) from your taxes. Depending on the value of your property, you could generate a million dollars or more in depreciation deductions over  Continue Reading »

When it comes to building wealth on a tax-deferred basis, the benefits of a 401(k) plan are too good to pass up. If your Maine-based small business doesn’t have a 401(k) plan, now is a good time to start one. If you already have a plan in place, there are ways to improve it and  Continue Reading »

These days, it’s rare to have firsthand knowledge of a new hire, thanks to the mobility of our society. And the days are gone when an employer would dare to hire based solely on a grade point average and a transcript from a school or college. Today, a Maine-based employer needs to know more about applicants.  Continue Reading »

The success of your Maine-based small business depends to a great extent on the quality of the contracts you sign. A good contract protects everyone, and a bad contract could ruin you. Every time you promise to exchange services or property, you create a contract, either written or unwritten. Oral contracts present several problems. They can  Continue Reading »

Alberts v. HCA, Inc., 2013 U.S. Dist. LEXIS 96646 (July 11, 2013) In his appeal, a trustee “strenuously” contested the Bankruptcy Court’s decision to consider a $20.6 million capital transfer as a surplus rather than a necessary asset for operations when the court calculated the business enterprise value of a hospital under the income approach.  Continue Reading »

When a professional corporation sells its assets or liquidates, one important tax issue is whether the corporation or the shareholder-employees own any appreciated professional goodwill. For tax purposes, goodwill is an intangible asset. It represents the value of a trade or business based on expected continued customer patronage due to its name, reputation, and similar  Continue Reading »

If your Maine-based small business doesn’t provide health insurance, or if you do provide coverage but your employees are faced with increasing deductibles, co-pays or out-of-pocket expenses, it’s the perfect time to take a look at flexible spending accounts (FSAs). A form of cafeteria plan under Section 125 of the Internal Revenue Code, a health care FSA allows  Continue Reading »

If your Maine-based small business is essentially a one-person operation, there’s an option to help you save more money for retirement: The Solo 401(k) plan. Ordinarily, traditional defined contribution retirement plans allow annual contributions that are limited to either 25 percent of salary if you’re employed by your own S or C corporation or 20  Continue Reading »