A three-step strategy to save tax when selling appreciated vacant land
Let’s say you own one or more vacant lots. The property has appreciated greatly and you’re ready to sell. Or maybe you have a parcel of appreciated land that you want to subdivide into lots, develop them and sell them off for a big profit. Either way, you’ll incur a tax bill. There’s a strategy to consider that allows favorable long-term capital gain tax treatment (rather than ordinary income treatment) for all the pre-development appreciation in the value of your land. Contact the CPAs and tax advisors at SEK for tax assistance and to avoid potential pitfalls.
Tax tips when buying the assets of a business
If you’re buying a business, you want the best results possible AFTER taxes. You can potentially structure a purchase in two ways: 1) Buy the business assets. 2) Buy the seller’s entity ownership interest. Contact the CPAs and business tax advisors at SEK for answers to your tax questions.
New survey reveals top audit committee concerns
Audit committees act as gatekeepers over financial reporting. A recent study identified the following five priorities for audit committee members over the next 12 months: 1) cybersecurity, 2) enterprise risk management, 3) finance and internal audit talent, 4) compliance with laws and regulations, and 5) finance transformation. Contact the CPAs and business advisors at SEK with your audit questions.
Making will revisions by hand is rarely a good idea
To avoid the time and expense associated with formally updating your will, it may be tempting to simply make the change by hand and initial it. But this is almost always a bad idea. For one thing, handwritten changes are highly susceptible to a challenge. Even worse, depending on the law in your state, handwritten changes may not be binding.
Combatting negative public perceptions of your nonprofit
Although Americans trust philanthropic organizations more than government and businesses, almost a third believe not-for-profits are on the “wrong track,” according to a 2023 survey. But there are ways to manage public perception to help your nonprofit weather unexpected crises.
When do valuable gifts to charity require an appraisal?
If you donate valuable items to charity and you itemize deductions on your tax return, you may be required to get an appraisal. The IRS requires donors and charities to supply certain information to prove their right to deduct contributions. Questions? Contact the CPAs and tax advisors at SEK for more information.
Daryl Staley Named 2024 Young Leader Award Winner
The Pennsylvania Institute of Certified Public Accountants (PICPA) has selected Daryl Staley, CPA, MBA, Member of the Firm at SEK, CPAs & Advisors as a Young Leader
What’s the difference between a calculation of value and a conclusion of value?
Valuing a business takes time and money. Sometimes a limited-scope “calculation of value” may be appropriate. But taking shortcuts can be costly in other situations. A full-blown “conclusion of value” is generally more credible, so it’s advisable for litigation purposes and often required for tax filings and valuations prepared for Small Business Administration programs. Contact the CPAs and business advisors at SEK to determine what’s appropriate for your situation, based on the intended uses of the valuation, access to the company’s financial records, and time and resource constraints.
The tax advantages of including debt in a C corporation capital structure
Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corp that needs more capital. Be aware that the federal tax code treats corporate debt more favorably than corporate equity. So for shareholders of closely held C corps, it can be a tax-smart move to include in the corporation’s capital structure some third-party debt (owed to outside lenders) and/or some owner debt. The reasons have to do with the income tax rate, the capital gains / dividend tax rate and the double taxation that occurs when a corporation pays tax on its profits and shareholders pay tax again when the profits are distributed as dividends. Contact the CPAs and business tax advisors at SEK about your situation.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.