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Owners of private businesses often wonder: How much is my business interest worth? Financial statements are a logical starting point for answering this question. Here’s an overview of how financial statements can serve as the basis for value under the cost, income and market approaches.


Although the drop of the corporate tax rate from a top rate of 35% to a flat rate of 21% may be one of the most talked about provisions of the Tax Cuts and Jobs Act (TCJA), C corporations aren’t the only type of entity significantly benefiting from the new law. Owners of noncorporate “pass-through” entities may see some major — albeit temporary — relief in the form of a new deduction for a portion of qualified business income (QBI).


Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to tax breaks for individuals, reducing or eliminating some while expanding others. The total impact of all of these changes is what will ultimately determine whether you see reduced taxes. One interrelated group of changes affecting many taxpayers are those to personal...


It’s common for grandparents to want to help ensure their grandchildren will get a high quality education. And, along the same lines, they also want the peace of mind that their wealth will be preserved for their children and grandchildren after they’re gone. If you’re facing these challenges, one option that can help you conquer both is a 529 plan. And it’s become even more attractive under the Tax Cuts and Jobs Act (TCJA).


Percentages and Wage Limits

The Social Security (FICA) tax rate for the employee's and employer’s share remains the same at 6.2%. The payroll limit will increase from $127,200 to $128,400.   This equates to a maximum withholding per employee of $7,960.80 for 2018.   A contribution rate of 12.4% of gross wages up to $128,400 is to be used to compute... 


The Tax Cuts and Jobs Act (TCJA) generally reduces individual tax rates for 2018 through 2025. It maintains seven individual income tax brackets but reduces the rates for all brackets except 10% and 35%, which remain the same.

It also makes some adjustments to the income ranges each bracket covers. For example, the 2017 top rate of 39.6% kicks in at $418,401 of taxable income for single filers and $470,701 for joint filers, but the reduced 2018 top rate of 37% takes effect at...


The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file...


Do you remember the high-profile fraud that happened at drugstore chain Phar-Mor in the 1990s? Executives manipulated the company’s financial statements to hide approximately $500 million in losses.

A key ploy that perpetrators used in the Phar-Mor case was to overstate inventory balances at individual stores. Management became adept at hiding the scam from their financial statement auditors by shifting inventory from location to location and overstating unit prices. Dishonest managers also... 


On December 20, Congress completed passage of the largest federal tax reform law in more than 30 years. Commonly called the “Tax Cuts and Jobs Act” (TCJA), the new law means substantial changes for individual taxpayers.

The following is a brief overview of some of the most significant...


The recently passed tax reform bill, commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), is the most expansive federal tax legislation since 1986. It includes a multitude of provisions that will have a major impact on businesses.

Here’s a look at some of the most...


It’s important to resist the temptation to rely on gut instinct or take shortcuts when budgeting for 2018. Creating a solid budget that’s based on the three components of your company’s financial statements will help...


Who is required to file?

All corporations and limited liability companies registered in California or doing business in California must file a Statement of Information with the California Secretary of State's office and pay a $25 filing fee for a corporation or a $20 fee for the LLC.  You will receive a...


The Internal Revenue Service requires the filing each year of Form 1099 information returns. All individuals, corporations, partnerships, limited liability companies and joint ventures that are engaged in a trade or business (including part-time businesses, and rentals) must file the forms. Failure to file required information returns will cause substantial penalties and could cause the disallowance of deductions. The penalty for not filing the forms or filing late could amount to up to $530 per form. The Internal Revenue Service also sends this information to the State Franchise Tax Board. The 2017 forms are due to the recipient and to the Internal Revenue Service by...


By now you probably have heard about the sweeping proposed tax changes coming in 2018. Here are some 2017 tax planning items to consider in light of some proposals from the new tax laws. As no tax law has been finalized, these items may...


The FASB’s “Emerging Issues Task Force” (EITF) has been working to provide accounting guidance on the use of cloud computing arrangements (CCA’s) due to their rise in popularity. The FASB has continued to receive pressure from practitioners and businesses to give them guidance on this subject, as costs related to implementing these systems are often...


On October 2, 2017, the President signed H.R. 3823, the Disaster Relief and Airport and Airway Extension Act of 2017, which provides temporary tax relief for victims of hurricanes Harvey, Irma and Maria. The following is a brief overview of some...


The Secure Choice retirement program signed into law by Governor Jerry Brown on September 29, 2016 will go into effect in 2019 and requires employers with 5 or more employees that don't presently provide a retirement plan to either offer one or provide Secure Choice. It is a voluntary program that employees can opt out of at any time and...


Starting January 1, 2017, employers with ten or more employees have been required to electronically submit employment tax returns, wage reports and payroll tax deposits to the Employment Development Department (EDD) (Assembly Bill 1245, Stats. 2015, Ch. 222). Beginning January 1, 2018, this requirement will apply to...


Additional tax rate changes became effective October 1, 2017 for most jurisdictions within Los Angeles County due to the 0.25 percent Measure H, Sales Tax for Homeless Services and Prevention. You can find new rates at...