Structuring the deal

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

Frequently, the seller of a desirable business wants to be paid 75% or more of the sale price up front. A buyer with little cash is forced to borrow from a bank, friends, family or the seller personally, to consummate the transaction.

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What happened to ‘Til death do us part’?

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

Obtaining a divorce does not necessarily mean that two people who find that they are incompatible have to undergo extended emotional and financial pain. Intelligent couples are increasingly taking a mature approach to their problem and to devising a fair resolution. The approach typically may include actions (among many others) such as:

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Hey You S.O.B.! (Sons of Bosses)

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

The recent economic expansion has benefited the owners of family businesses just as it has large corporations, and many have accumulated significant wealth. You might recall reading about a consulting firm who polled the owners of 500 family businesses to assess their most important concern. The three major issues of concern were:

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What if the kids don’t want the business?

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

So much for succession planning! There are just some times when everyone will benefit by ceasing family ownership. Business owners who decide to sell their business can structure the transaction to be an asset sale or a stock sale. In the former, the buyer purchases the business assets outright for cash (less liabilities assumed), debt, stock or a combination of these.

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S Corporation Alert

submitted Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

Significant increase in payroll taxes in recent years has caused some S corporation shareholder-employees to conclude that it is better to take a lower salary and draw out profits of the company through larger dividend distributions. The IRS is aware of this and looks for “inadequate compensation” to shareholder-employees.

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Finding the value of a business in a divorce

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

One aspect of finding value for a divorce settlement is that you are not seeking the investment value of the business. Because the business usually isn’t going to be sold, its value to a specific buyer isn’t particularly relevant. For this reason, the value decided on for a divorce is different. Many of the considerations are the same as for determining the sale value, but there are some substantial differences.

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Give tax records a mid-year tune-up

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

Here are some tips on tax recordkeeping.

  • Keep copies of your filed tax returns as part of your tax records. They can help you prepare future tax returns. You’ll also need them if you need to file an amended return.

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Getting a bigger bang with employee reimbursement bucks

submitted by Martin H. Abo, CPA/ABV/CVA/CFF, Abo and Company, LLC

An employer can operate an accountable plan that reimburses employees for the actual amount of their business-related expenses. Alternatively, an accountable plan can pay predetermined allowances for designated expenses. Either approach is okay with the IRS, as long as the applicable rules are followed.

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