Professional Accounting Blog

    Accounting For Your Prosperity

    Maybe I Should Give up Coffee...

    Posted by Lloyd Bell on Nov 20, 2018 2:20:43 PM

    Topics: Corporate Finance

    I recently came across a 2015 study by the University of Innsbruck that concluded that people who drink black coffee, tonic water or enjoy radishes are more likely to be psychopaths. Actually, it states that people who enjoy those items are more likely to exhibit signs of “Machiavellianism, psychopathy, narcissism, and everyday sadism”. Not sure how “everyday sadism” differs from just plain old sadism, but they’re Austrian and must know something I don’t. Anyway, I happen to enjoy all three of those things, although I must admit the tonic water needs gin to make it palatable.

    The reason, according to the study, is that psychopaths enjoy taking risks. The bitter flavors found in nature (or black coffee) are often from plants that are poisonous.

    Thanks for dropping the knowledge, Lloyd. But where are you going?

    If psychopaths enjoy taking risks, would that suggest that entrepreneurs are psychopaths? Of course not. Psychopaths generally have a lack of empathy and feeling for others, selfishness, lack of guilt, and a superficial charm that manifests exclusively to manipulate others. OK, that sounds like some entrepreneurs I’ve met, but risk taking on its own can be explained by other, less menacing-sounding traits.

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    Implementing an ESOP – Plan and Trustee Considerations

    Posted by Michelle Buckley on Nov 14, 2018 8:00:00 AM

    As a business owner, you have decided to sell to your employees and implement an employee stock ownership plan (ESOP). Your advisors have helped you structure the deal, the financing is in place, and the last piece to complete is designing the actual ESOP plan and choosing a trustee.

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    A Wealth of Year-end Planning Opportunities for Individuals

    Posted by Karen McCarthy on Nov 6, 2018 4:07:04 PM

    Topics: Tax Planning & Strategies

    The Tax Cuts and Jobs Act (TCJA) created more than 100 new tax provisions — a staggering thought as you begin to prepare for the next filing season. The good news is that these and some of the surviving provisions create a wealth of year-end planning opportunities.

    Choose the right approach to deductions

    Many taxpayers who’ve traditionally itemized their deductions might end up simply claiming the standard deduction for 2018. The TCJA roughly doubles the standard deduction to $12,000 for single filers and $24,000 for married couples. It also suspends personal exemptions and eliminates or limits many of the popular itemized deductions.

    The deduction for state and local income and sales taxes, for example, is limited to $10,000 for the aggregate of state and local property taxes and income or sales taxes. This could make it difficult to claim enough in itemized deductions to surpass the standard deduction.

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    Infrastructure Spending Plan Puts Burden on State & Local Governments

    Posted by Aaron T. Cook on Nov 1, 2018 8:00:00 AM

    Topics: Tax Planning & Strategies

    If anything can be considered a bipartisan initiative in this day and age, it might be the call for additional infrastructure spending, not only here in Ohio, but for the nation as a whole. In fact, the United States earned an embarrassing grade of D+ in the 2017 Infrastructure Report Card and Ohio has plenty of infrastructure issues of its own.

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    IRS Proposes Regulations for Opportunity Zone Tax Incentives

    Posted by Jonathan Ciccotelli on Oct 30, 2018 9:35:29 AM

    Topics: Tax Planning & Strategies

    The Tax Cuts and Jobs Act (TCJA) includes a provision that Secretary of the Treasury Steven Mnuchin said should lead to $100 billion in capital investments in distressed areas. The provision allows taxpayers to defer tax on capital gains by investing in such Opportunity Zones. And now the IRS has released proposed regulations for this tax incentive.

    The tax incentive in a nutshell

    The TCJA creates a new section of the Internal Revenue Code, Section 1400Z, that establishes Opportunity Zones within low-income communities. More than 8,700 communities in all 50 states, the District of Columbia and five U.S. territories have been designated as qualified Opportunity Zones. They’ll retain that designation until December 31, 2028.

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    What Aluminum and Steel Tariffs Mean for Your Construction Project

    Posted by Aaron T. Cook on Oct 25, 2018 8:00:00 AM

    Topics: Accounting and Tax Resource

    In March 2018, the United States imposed steel (25%) and aluminum (10%) tariffs on imports from Canada, Mexico, and the European Union. Both steel and aluminum are significant components of construction materials, but how significant will steel and aluminum tariffs impact the overall cost of construction on a typical construction project?

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    Year-end Tax Planning for Businesses

    Posted by Jonathan Ciccotelli on Oct 22, 2018 4:32:42 PM

    Topics: Tax Planning & Strategies

    The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.

    Fresh opportunities

    The TCJA creates several new avenues of potential tax savings for businesses. Some of these, though, may require tough decisions. For example, the new tax law has prompted some businesses to question whether they should restructure to become a C corporation or a pass-through entity. The former is subject to potential double taxation (at the entity and dividend levels) but now enjoys a corporate tax rate that has fallen from 35% to 21%. The latter faces only an individual tax rate, which can run as high as 37%, but might qualify for a new, full 20% deduction on qualified business income (QBI).

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    How to Quantify Lost Profits & Diminished Business Value

    Posted by Meaden & Moore on Oct 22, 2018 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    The ultimate goal of any economic damages case is to make the plaintiff “whole” again. Many factors go into this assessment. This article covers the basics of how experts quantify lost profits and diminished business value, including potential pitfalls that novice experts need to avoid.

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    Patent Apportionment: Don’t Double Count Damages!

    Posted by Meaden & Moore on Oct 19, 2018 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    When calculating reasonable royalty damages in patent infringement cases, experts are often called upon to “apportion” the royalty base among multiple patents or between infringing and non-infringing products or product features. In Finjan, Inc. v. Sophos, Inc., the U.S. District Court for the Northern District of California excluded an expert’s testimony on Daubert grounds because her apportionment methodology improperly inflated the royalty base.

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    Update on Patent Damages Under the Panduit Test

    Posted by Meaden & Moore on Oct 17, 2018 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    The Panduit factors for determining lost profits damages in patent infringement cases were established about 40 years ago. The courts still rely on this test when plaintiffs seek more damages than just reasonable royalties. Over the years, these factors have been challenged on various grounds – and could soon come under U.S. Supreme Court scrutiny.

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