For federal income tax purposes, an unincorporated joint venture, other contractual, or co-ownership arrangement, under which several participants conduct a business or investment activity and split the profits, is generally treated as a partnership. If the joint venture or arrangement is not recognized as a separate legal entity (apart from its owners) under applicable state law,  Continue Reading »

Many Maine businesses are uncertain how to account for costs to produce, acquire, or improve property, plant and equipment. To address this, in 2013 the IRS issued regulations on capitalizing versus deducting the costs of tangible personal property. In 2014, the IRS added rules covering dispositions of tangible property. The IRS  announced on November 24th that  Continue Reading »

Have you heard of “Giving Tuesday” yet? On December 1, 2015, many charities used “Giving Tuesday” as a catchy way to launch their year-end fundraising campaigns. It’s a critical time of year for the not-for-profit sector. Historically, a significant amount of charitable donations occur in the last weeks, days and even hours of the year  Continue Reading »

Few things say “thank you” like food. As the holidays and year-end crunch approach, many Maine employers will bring pizza or donuts into the office, organize a holiday luncheon or provide their staff with free Thanksgiving turkeys. Employer-provided meals offer an opportunity to thank employees for another year of service — or to entice them to  Continue Reading »

Business valuations are prepared as of a specific date, similar to balance sheets. Sometimes a valuation’s effective date is in the past, and events have occurred after the valuation date that would have impacted the company’s value if investors knew (or could have known) about them beforehand. These retrospective valuations are common in litigation and  Continue Reading »

Changes brought by the Affordable Care Act (ACA) continue to roll in. For affected Maine employers, these changes could mean higher expenses and will add filing responsibilities with the IRS. Background: The ACA has a language of its own, with many new terms employers must learn. For example, “applicable large employer,” or ALE, is defined as an  Continue Reading »

Virtually all Maine small business owners are frustrated with our current tax system. In fact, five out of today’s Top 10 small business concerns relate to state and federal tax issues, according to the Small Business Problems and Priorities survey released by the National Federation of Independent Business (NFIB), a small business advocacy group. Small businesses  Continue Reading »

Documenting business travel expenses causes administrative headaches for employers and employees alike. Typically, employees are required to collect receipts as they travel, noting the time, place and business purpose of each expenditure. They then must submit monthly expense reports that are subject to approval of their supervisors. Sometimes, administrative delays occur if documentation is incomplete or  Continue Reading »

Here in Maine, Fall is often a time to stop and enjoy the beautiful foliage, but it is also the time to start your year-end tax planning for 2015, and to tie up loose ends that remain from the 2014 tax season. However, be aware that the October 15th extension date has passed. Here are  Continue Reading »

It may seem far away, but the year will be wrapping up before we know it. Small business owners need to keep in mind all that needs to be submitted to complete required documents. Here are some important items to keep in mind when finishing up the tax year. Remember, not all may apply to  Continue Reading »