If divorcing spouses own part of the stock in a closely held corporation, this may be one of their biggest marital assets, and often one spouse decides to buy out the other party’s shares by transferring some assets in exchange for the stock. However, it’s important to consider the expected tax consequences before jumping into these  Continue Reading »

The time for filing last year’s individual federal income tax return passed you by in April, unless you’ve extended the due date to October 17. What if you didn’t extend and you haven’t yet filed your Form 1040? And what if you can’t pay your tax bill? Here’s an explanation on how to handle these  Continue Reading »

If your employer offers a 401(k), 403(b) or governmental 457 plan, you may be able to set up a designated Roth account through your company’s plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of your salary through so-called “salary-reduction contributions.” Here’s more on why it may be  Continue Reading »

Some worthwhile tax breaks for transportation-related employee fringe benefits are being allowed by the Internal Revenue Code. They’re intended to persuade you to “go green” and give up your gas-guzzling vehicle when commuting to work. If your employer offers these tax-favored benefits, you should consider signing up. Here are the specifics. Favorable Tax Treatment The  Continue Reading »

Since 1991, the $7.25 per hour federal minimum wage has been in place. The inflation-adjusted wage would have to be $12.68 to have the same purchasing power today, according to the CPI Inflation Calculator from the U.S. Bureau of Labor Statistics. President Obama has been supporting an increase in the federal minimum wage to $12 per  Continue Reading »

The exchange of intangible property involves a two-part test. Yes, you can arrange a tax-deferred exchange of your company’s intellectual property — for example, copyrights, patents or trademarks — with another company. However, the IRS imposes strict requirements on such “like-kind” transfers and requires a specific analysis for each transaction. Like-Kind Exchange Basics Generally, no taxable gain  Continue Reading »

A sneak preview of proposed modifications to the rules governing overtime was provided last year, but a change has been coming for two years. On May 18, the Department of Labor (DOL) came out with its new final rules, which take effect on December 1, 2016. The rules will significantly raise the salary level used  Continue Reading »

Estate planning can be a challenge for many Maine family business owners. Often times, wealth is tied up in their companies, which creates a conflict between the desire to transfer ownership to the next generation and the desire to stay in control. Recapitalizing the business into voting and nonvoting shares is one potential solution, as  Continue Reading »

It happens all the time. Shortly after filing their tax returns, many taxpayers discover a deduction they overlooked or some income that should have been included. You might find yourself needing to change things on your tax return; maybe due to a discovery of a deduction that was overlooked on a federal tax return that has already  Continue Reading »

Under the Protecting Americans from Tax Hikes (PATH) Act of 2015, many tax breaks have been retroactively expanded for 2015 and beyond, and in some cases been made permanent. Now that the new law has settled, individuals and small business owners can plan ahead with these 10 midyear tax strategies inspired by the recent legislation. 5  Continue Reading »