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. ********** ...
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...
Since peaking in mid '98, shares of Pixar have had something of a tough time of it. The company is notoriously closely held. That senior officers maintain large positions is a matter of course, and perhaps justifiably insider profit taking at the company typically generates little excitement. Even so, heavy...
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...
MOUNTAIN VIEW, CALIF. - OpenTV Corp. said it has closed its acquisition of Static 2358 Holdings Ltd., a closely held U.K. interactive-television company, for about $13.1 million in cash and 2.7 million OpenTV shares. MOUNTAIN VIEW, CALIF. - OpenTV Corp. said it...
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...
Eagle Bancorp Inc. said it will acquire closely held Fidelity & Trust Financial Corp. for roughly $48.8 million to expand in the Washington, D.C., area. Fidelity shareholders will receive 0.9202 shares of Eagle common stock for each share owned, the two Bethesda- based banks said. The offer equals $11.51 a...
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....
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....
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...
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....
Strike cuts UPS stock ATLANTA Bloomberg -- United Parcel Service of America has cut the value of its stock by $285 million following a 16-day Teamsters union strike, the first reduction in the company's 90-year history. The board of closely held UPS reduced the value of each of...
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...
