Is your hobby a business? It matters to the IRS. The agency says your hobby is a business if it operates to make a profit. But it's not a simple determination. Here are some factors the IRS offers to help you ascertain whether your...
How do you measure how robust your business is? One of the key ways is by looking at financial ratios, which can be grouped into four categories....
Many banks and alternative lenders are out there vying for your attention. Once you decide on a lender, what's next? This post presents the steps you need to take to obtain your business loan....
This overview can help you learn more about IRS Revenue Ruling 59-60, which is regarded as the foundation of modern business valuation. The ruling outlines and reviews the approach, methods and factors to be considered in valuing the shares of the capital stock of closely...
The Tax Cuts and Jobs Act of 2017 expanded the federal estate and gift tax exemption to $11.2 million per person, or $22.4 million for a married couple. Under the Act, these higher limits are applicable through December 31, 2025. On January 1, 2026 the...
Selling a capital asset results in a gain or loss and impacts your income taxes. This post explains what capital gains and losses are, and gives some insights into the tax implications of capital gains and losses....
Your business represents a big part of your wealth. Here's why you need to protect it with a succession plan, so that you can ensure the business retains its value after you're gone. ...
Financial statements are intended to give you current information on your business's financial standing so you can make more informed decisions. There are three levels of overview you can choose to take — compilation, review or audit — and what you select will have a lot...
Putting your children on payroll can help reduce the overall family tax bill and transfer assets to your children without introducing gift tax implications. This post explains the things you need to know to make this work for your family and your business....
I frequently receive requests to quickly value a business by applying a “rule of thumb”, that is, application of a simple formula to the gross or net income of a business to determine its value. That's a bad idea - this post explains why....
