Employee Compensation

Normalizing Adjustments and Valuations

2017-04-04T17:33:33-04:00

Valuations frequently assume a third party will purchase a business and primarily run it unchanged.  This does not mean a buyer will continue to pay expenses or a level of expense not considered typical.  Non-operating assets are typically excluded from a valuation, too.  Normalizing adjustments take the atypical expenses or portion of expense (or income) [...]

Normalizing Adjustments and Valuations2017-04-04T17:33:33-04:00

83(b) Elections and the Smaller Business

2017-04-04T17:24:03-04:00

We continue our series of articles on compensation with this blog on IRS Section 83(b) elections. A section 83(b) election allows an employee or contractor to include in taxable income the fair market value of property they received for the performance of services before they are truly entitled to that property.  With small businesses, this [...]

83(b) Elections and the Smaller Business2017-04-04T17:24:03-04:00

Stock Options and the Smaller Business

2017-04-04T17:24:50-04:00

Stock options and stock ownership plans are a popular and effective method of incentivizing employees, often at a low cost to both the employer and the employee. Several types exist, including non-qualified stock options, incentive stock options, employee stock ownership plans, phantom stock, stock appreciation rights and more. In this second of a series of [...]

Stock Options and the Smaller Business2017-04-04T17:24:50-04:00

Stock Options – Non-Qualified Stock Options and Incentive Stock Options

2017-04-04T17:25:04-04:00

Stock options and stock ownership plans are a popular and effective method of incentivizing employees, often at a low cost to both the employer and the employee.  Several types exist, including non-qualified stock options, incentive stock options, employee stock ownership plans, phantom stock, stock appreciation rights and more.  In this first of a series of [...]

Stock Options – Non-Qualified Stock Options and Incentive Stock Options2017-04-04T17:25:04-04:00

IRS May Try to Restrict Discounts

2017-04-04T17:26:44-04:00

[av_textblock size='' font_color='custom' color='#83a846'] At the American Bar Association (ABA) Section of Taxation meeting on May 8th, 2015, Catherine Hughes, of the Office of Tax Policy in the U.S. Treasury Department, announced that proposed regulations under section 2704(b)(4) could be released before the fall. She indicated that the tax community could look to the Obama [...]

IRS May Try to Restrict Discounts2017-04-04T17:26:44-04:00

Sales of Privately Held Businesses Are On the Rise December 2014

2017-04-04T17:28:09-04:00

The economic recovery has created a surge in sales of small businesses. The number of deals tracked by online marketplace BizBuySell.com rose more than 40 percent in the third quarter. Behind the trend: Baby boomers want to retire, businesses are healthier after the recession and buyers are finding it is easier to finance deals. At [...]

Sales of Privately Held Businesses Are On the Rise December 20142017-04-04T17:28:09-04:00

Farrell v. Farrell, 2013 Ark. App. LEXIS 33 (Jan. 23, 2013)

2017-04-04T17:28:25-04:00

In this Arkansas Court case, the various attempts to determine values for two related family-owned businesses led to widely divergent results.  Even from the same valuation analyst. Farrell v. Farrell, 2013 Ark. App. LEXIS 33 (Jan. 23, 2013) The wife appealed the trial court’s decision to assign all interest in the family businesses to the [...]

Farrell v. Farrell, 2013 Ark. App. LEXIS 33 (Jan. 23, 2013)2017-04-04T17:28:25-04:00

How to Select a Business Valuation Expert

2017-04-04T17:28:43-04:00

The selection of a business valuation expert becomes critical if you or your clients have a need to “know” the value of a business. There are several considerations that must be made before selecting an expert. These qualifications and characteristics apply in any engagement: • Is the analyst certified by a recognized national credentialing organization [...]

How to Select a Business Valuation Expert2017-04-04T17:28:43-04:00

How to Review a Valuation Report

2017-04-04T17:28:56-04:00

Business valuations are prepared for many purposes, including litigation, estate and gift tax, and the purchase or sale of a business. To properly understand and utilize a valuation, the reader should critically review the report to determine its accuracy and reasonableness.In reviewing a business valuation report, the reader should determine if the report is prepared [...]

How to Review a Valuation Report2017-04-04T17:28:56-04:00

Court Discredits Expert’s Use of Going Concern Method for Inactive Business

2017-04-04T17:29:23-04:00

In this New Hampshire Court case, the CPA’s attempt to determine a value for a struggling business using a going concern approach was rebuffed O’Rourke v. Burke and Hotchkiss, PLLC, 2013 N.H. Super. LEXIS 4 (March 6, 2013) Citing an authority on the going concern methodology but failing to apply the prescribed principles was only [...]

Court Discredits Expert’s Use of Going Concern Method for Inactive Business2017-04-04T17:29:23-04:00