Fiduciary income tax issues related to closely held businesses can be very complex and are often uncertain. This article attempts to define and clarify some of these issues. In planning for the owner of a closely held business, the document drafter must consider the effects of the estate plan on...
A CPA can play an important role in divorce tax planning that involves a closely held business. This article identifies some common issues the tax adviser faces when a divorcing client or spouse owns a closely held business and discusses planning techniques. ********** ...
Two recent court decisions should prove to be landmark cases in the valuation of closely-held corporations for estate and gift tax purposes. In Irene Eisenberg v. Commissioner,[1] the Tax Court found that the gift tax value of stock in a closely-held corporation should not be discounted to reflect capital gains...
Tax advisers to value the stock hire expert appraisers; sometimes, if the IRS does not agree with the value reported on the return, litigation ensues. Thus, when the courts and IRS agree that certain reductions in closely held stock value are permissible, CPAs should take notice. CPAs who work with...
In many circumstances, key employees of closely held C corporations can be compensated with salary and other benefits not granted proportionately or equivalently to other employees. Part I of this article, in the October 2004 issue, examined salaries and bonuses, interest-free loans and health and disability...
People tend to think of huge businesses when they talk about C corporations. But a C corporation also can be the right vehicle for small entities. Too many people do not take the time to consider the potential advantages of a closely held C corporation. A C corporation can require...
Taxes are now included in the calculation. In Brief Double Taxation Is Not Nice It used to be that the tax on liquidation could be avoided at the corporate level and paid at the shareholder level. In the past, when valuing a C corporation, no discount was...
This article will outline some of the many advantages of hiring a qualified professional advisor to assist in the sale of the closely held business and will outline some of the many pitfalls that could happen should the closely held business owner choose not to utilize a qualified professional advisor...
This article defines that Economic Value Added EVA is an indicator of the market value of service center's owner’s equity, a measure especially important to closely held companies, which do not have the benefit of a published stock price. For publicly traded companies, EVA correlates very closely with stock price....
How do you fairly appraise the value of a closely held business, particularly one in which multiple owners are involved?Unlike owning shares of General Motors, Microsoft or Dell, the value of a closely held business at any particular point in time can't be determined by simply opening up the pages...
The paper concludes that selling a company is a complex process that involves skills that the average closely held business owner does not have. While it is possible to “go it alone” to save the fee of an investment banker, this course of action will most likely result in frustration...
On Oct. 17, Computer Associates announced that it had acquired closely held iLumin Software Services, whose software enables secure legal documents to be sent over the Internet.
From the executive summary: ‘Perhaps the most powerful tax-planning tool available to shareholders of a closely held company is the ability to sell stock to a trust created pursuant to an employee stock ownership plan ESOP. By selling his or her stock to an ESOP, the individual will pay no...
This paper focuses on the role the company stock may play in retirement plans sponsored by publicly traded companies. The rules for tax-qualified plans that hold company stock in closely held companies particularly Subchapter S corporations are quite different and can be very attractive to the employer. But many of...
Byline: Allesandra Fabro Aug 07, 2005 (The Australian Financial Review - ABIX via COMTEX) -- The Australian Taxation Office ATO has realised that audits of private charities can be lucrative....
IT'S NOT QUITE APPLES-TO-APPLES The accounting profession has been awash in independence discussions for the last few years. The focus is almost always on SEC registrants and their auditors. Little concern has been expressed for the independence issues facing closely held companies and their auditors....
Many small closely-held companies want to help their employees establish retirement programs. Without going to the expense of a formal profit sharing plan or having an outside company administer a retirement program, closely-held companies should look at Simplified Employee Plans. A simplified employee pension plan, commonly known as a SEP,...
A simplified employee plan combines many advantages of a 401k plan, but is as easy to understand as an IRA. Many small closely held companies want to help their employees establish retirement programs. Without going to the expense of a formal profit-sharing plan or...
DEFENDING THE AICPA'S INDEPENDENCE RULES AND PROCESS Nicholas J. Mastracchio Jr.'s article "Independence and the Users of Closely Held Companies' Financial Statements" (June 2002) requires clarification regarding the newly revised AICPA independence rules, their interplay with SEC rules, and the process by which the AICPA's recent rule revisions were...
