Hoyman Dobson
E-ssentials Bulletin
Our newest profitability and wealth accumulation tips for our clients and contacts. Click on items of interest for more details on each topic.
Building Construction


A recent Tax Court case denied the exclusion of gain on the sale of a principal residence to a married couple because they had never lived in the home before selling it. Be sure you understand the two-out-of-five-year test.

Family Business


How vulnerable is your company to fraud? Do you have adequate controls in place to prevent it? A new CD-ROM explains how employees can protect their jobs and their organizations from fraud.

General Business


Did you know that in recent years one-third of American companies have switched to a performance ranking system to conduct evaluations? As opposed to the traditional performance appraisal, performance ranking is a controversial procedure in which employees are evaluated against each other instead of against objective performance standards. Know its benefits and drawbacks.

Manufacturing


As your business grows, the chances increase that you will become subject to tax in states other than your home state. Be sure you understand "nexus" tests and your state and local tax liability.

Nonprofit Organizations


For most people, asking someone they know for a large sum of money is about as welcome as being eaten by alligators. Navigating the field of personal solicitations can definitely be tricky but it s necessary to the success of your nonprofit organization. If you want a successful meeting with a potential major donor, here are eight things that you should never forget to do.

Physician Services


Social media marketing is all the buzz these days. And an increasing number of forward-looking physicians are jumping into the fray, as the Web 2.0 revolution has gone from personal social networking to business marketing mania. You should stay informed about the pros and cons.

Valuations


It s not uncommon for two independently owned businesses with similar products, revenues and size to be worth substantially different amounts to their owners, potential buyers and others. There are countless reasons why your business may be worth more than others just like it. Many of these reasons are collectively referred to as the goodwill of your business.

Washington Tax Update







Latest Business Headlines

U.S. Department of Energy

Wall Street Journal

Reuters

FOXBusiness

MarketWatch

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Proactive Tax Planning Key to a Company's Strategic Planning

 

There is more to tax than "tax time", "tax return" or tax filing deadlines.

 

It is about planning, researching, and identifying your best opportunities.

 

It is about taking advantage of the current tax laws and tax credits.

 

It is about your money and your company's money.

 

No wonder tax planning strategies play an important role in a company's overall business planning.

 

So how do you approach your company's tax planning?

 

Start early. If you want to minimize your tax bill, be proactive and start planning early in the year. Timely action can nail down a host of tax breaks. Also, it will help you be proactive in gathering supporting documentation -- a critical time- saver down the road and an essential undertaking to make the most of the available tax deductions and credits.

 

As you develop your tax plan with your accountant, below are some questions you should ask yourself and bring to your accountant's attention. Your answers will determine which tax strategies you need to use to take full advantage of the current tax laws.

 

Company structure. Is your company structured to minimize taxes? Are you thinking about starting a new business? How should you structure your new business?

 

Learn about different business structures and their tax implications here. 

 

Significant purchases & improvements. Is your business planning on purchasing equipment, making major improvements to the current office buildings, or buying a new building?


If you are thinking about building a new facility, purchasing or renovating an existing building, cost segregation studies should be at or near the top of your list.

 

Major transactions. In the upcoming year, is your company considering going through some major transactions, such as mergers or acquisitions? If so, consider the tax consequences as you plan those transactions. The tax ramifications can greatly impact the outcome of the deal. Make sure to consider the tax issues and their implications.

 

New products development. If your company is developing new products or is in the process of improving its existing products, consider taking advantage of this federal tax credit: research and experimentation tax credit studies.

 

Deductions and write-offs. Review with your accountant your company's current deductions and write-off strategies, such as writing off company assets, claiming additional depreciation and charitable contribution deductions. You may want to consider sponsoring a retirement plan. A review may help you identify new tax savings strategies.

 

Proactive business tax planning will enable you and your company to make the most of the current tax laws. Proactive business tax planning means potentially less tax liability, more tax credits, and a positive impact on your company's bottom line. Be proactive and tax smart.

 

Resources you could use:


IRS - Information for businesses

 

 CCH Business Owner's Toolkit

 

Business Tips

Managing Your Company - Spend extra time and money on training so employees are prepared to do the tasks assigned to them. This improves client service, employee morale and company profits.

Wealth Tips

Your Purchases - Leave your credit cards at home when you go out. Use only cash or check cards in your daily purchases.

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The technical information in E-ssentials is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.
 
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