Many of us have bought stock in a company that later failed over the years. While you may prefer to forget such an investment, don’t forget to claim your rightful capital loss deduction on your tax return. But beware that figuring out when to claim a worthless stock loss can be tricky. Here are the two ways  Continue Reading »

Owen v. Cannon, 2015 Del. Ch. LEXIS 165 (June 17, 2015) A joint fiduciary duty and statutory appraisal suit provided an opportunity for the Delaware Court of Chancery’s new chief, Chancellor Bouchard, to rule on the issue of tax affecting. In discussing the choices that informed his discounted cash flow analysis, the chancellor explained in  Continue Reading »

Tax Day is right around the corner for Maine businesses and individuals, and the filing deadline to submit 2015 individual federal income tax returns is Monday, April 18, 2016, rather than the traditional April 15 date. Washington, D.C., will celebrate Emancipation Day on Friday, April 15, which pushes the deadline to the following Monday for most  Continue Reading »

The IRS recently laid out a few changes for 2016 to the tax laws that govern benefits, as laid out in the annual “Tax Guide to Fringe Benefits.” The document features important clarifications, not just identifying which benefits are and aren’t tax-exempt to employees, but also the fine points of tests that tax-exempt benefits must  Continue Reading »

When purported loan payments are recast as corporate distributions to shareholders, there can be negative tax consequences. The courts, in some cases, have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments. As such, the withdrawals triggered taxable dividends and capital gains for the shareholders. Corporate Distribution  Continue Reading »

When faced with the choice of leasing certain assets instead of buying them outright, many companies are choosing to lease. These arrangements are especially common among construction contractors, manufacturers, retailers, health care providers, airlines and trucking companies that rely on expensive equipment or real estate in their day-to-day operations. According to estimates made by the  Continue Reading »

One of the largest investments you’ll ever make is attending college or graduate school, and spring is the time schools typically announce who’s made the cut. If you (or your child) plan to attend an institute of higher learning in the fall, May 1 is often the deadline for selecting a school. Finances are a  Continue Reading »

The tax elections you make on your 2015 personal tax return can be extremely important to your financial welfare. Here’s a list of 10 potential elections for individuals (including self-employed taxpayers) to consider making before tax day on April 18, 2016 (or April 19 for taxpayers in Maine and Massachusetts due to their Patriot’s Day  Continue Reading »

The research credit is looking good for some small Maine companies, and it’s back for good. The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law by the president on December 18th, does much more than extend this credit. Under the PATH Act, the research credit is restored retroactive to January 1, 2015,  Continue Reading »

In recent months, there have been several significant developments on the estate tax front, and in 2016, the federal gift and estate tax exemption increased to $5.45 million (up from $5.43 million for 2015). Here are some tips to help you stay atop the changes. New Basis Consistency Rules for Inherited Assets For federal income tax  Continue Reading »