It’s Time To Update Your Buy-Sell Agreement?

Generally speaking, we recommend all business owners to review their buy-sell agreement annually from a legal and valuation perspective. If you don’t, there might be some unfortunate news in your future. Read on to learn more.

Uncertainty of Estate Tax Levels and Family Valuation Discounts

Planning is part of our everyday life. Whether you’re writing out your daily “To Do” list, or mapping out your route to work, or strategizing about how to retire comfortably. Preparation is an essential task to reaching our goals. So when we don’t have the fortune of planning for something, it is important to prepare … Continued

How Are Gift Taxes Appraised?

If you gift an interest in a closely held entity, you must adequately disclose it on Form 709, United States Gift Tax Return or in a statement attached to the gift tax return. If you don’t, the statute of limitations won’t begin – allowing the IRS adjust the unified credit or assess potential gift tax, … Continued

How to Fund a Buy-Sell Agreement

How important is proper estate planning for business owners? Consider this real-life scenario. The majority owner of a successful business, which had a buy-sell agreement in place, died unexpectedly. The buy-sell agreement was funded by a life insurance policy that was owned by the company. A valuation showed that the value of the company was … Continued

Is Your Retirement Plan Based on Faulty Assumption?

As a business owner, do you know what your most important asset – your business – is really worth? All too often, business owners have to change their retirement plans due to miscalculating the true value of their business. Read on for a true example of what can happen if you make this mistake. A … Continued

Valuation Formulas in Buy-Sell Agreements

One of the most popular valuation methods used in buy-sell agreements is setting a specific formula in the agreement to determine value. Formula buy-sell agreements fix a single formula today for transactions that will occur at future dates. The advantages of formula buy-sell agreements are that they are easy to understand, they are easy to … Continued

Common Valuation Mechanisms Used in Buy-Sell Agreements

As a follow up to the article published previously, “How Valid is Your Buy-Sell Agreement?” this article will discuss some common valuation mechanisms that are used in buy-sell agreements and other important factors that should be considered. Buy-sell agreements are important because they represent an agreement between a company and its shareholders regarding how contemplated … Continued

Hobby Losses versus Business Expenses

Did someone tell you that you couldn’t deduct the losses from your booth at the antique mall or local festival, from your selling activity on Ebay or for your race car with advertising signage? Did you have a reasonable expectation of earning a profit? Now is the time to determine if the losses you might … Continued