Ronald Oddo | TaxConnections

31 Jan 2017

Dwindling Returns On Investment

Today, all owners face three significant headwinds that increase the difficulty of a successful business exit. One is our flat economy—today and for the foreseeable future. The second is the substantially higher tax bill that’s due upon the sale of a business. And last, but not least, is the long-term mediocre investment climate that depresses the amount of income owners can expect from their sale proceeds and other investments. Combined, these three headwinds wreak havoc on an owner’s ability to cross the finish line at all, let alone as they originally planned.

Written by Ronald Oddo | Posted in Exit Tax

27 Jan 2017

Preventing A Huge Taxation On Your Business

Written by Ronald Oddo | Posted in Exit Tax

26 Jan 2017

The Economy Just Ain’t What It Used To Be

Written by Ronald Oddo | Posted in Exit Tax

20 Jan 2017

Valuation Of Your Business – Basis For Tax Planning

Few business owners relish spending money on something they don’t need. And for most owners, hiring an expert to estimate the value of their companies falls into that don’t-need category.

So it is no surprise that owners typically respond to an exit planning advisor’s recommendation to get an estimate of value for the company with some variation of: “Now? But I’m not planning to leave for years!” or “I built this company so I—better than any so-called expert—know what it is worth!”

Written by Ronald Oddo | Posted in Tax Planning

12 Jan 2017

Minimizing The Estate And Gift Tax Consequences

The key to transferring large amounts of wealth was discussed 2000 years ago by the patron saint of estate planning attorneys, Archimedes.

Regarding leverage he observed, “Give me a place to stand and I will move the earth.” Using leverage to move the earth—or to move your wealth—is the key to achieving noteworthy results. Each U.S. resident can give away, during lifetime, $5 million as well as the current annual gift exclusion.

Written by Ronald Oddo | Posted in Family Wealth Planning

21 Dec 2016

Tax Rules When Selling Your Home

How the gains from the sale of a primary residence are taxed has changed in recent years. If you have recently sold your home, or are considering doing so, you may want to be aware of some of these tax rules.

Written by Ronald Oddo | Posted in Family Tax • United States

16 Nov 2016

Choosing Between A ‘C’ OR ‘S’ Corporation – Selling Options For your Business

Usually, no other factors carry the weight of the tax issue or significantly differentiate the C from the S Corporation. Limited liability is attainable in both the C and S Corporation forms. Voting rights need not differ. An S Corporation conducts business, on a day-to-day basis, exactly as a regular corporation. The only difference between the C and S Corporation is the filing of a one-page IRS form (Form 2553) electing treatment as an S Corporation.

Written by Ronald Oddo | Posted in Corporate • Exit Tax

11 Nov 2016

Choosing Between A ‘C’ OR ‘S’ Corporation – Weighing Tax Attributes

Question most CPAs as to what business form they suggest for the business clients and they typically answer, “A C Corporation—at least in the early capital formation years of the business.” Ask any Investment Banker or other Transaction Advisor what entity they prefer and you will likely hear, “An S Corporation or LLC (Limited Liability Company), or perhaps a partnership or sole proprietorship. Anything, anything, but a C Corporation!”

Written by Ronald Oddo | Posted in Corporate • Tax Tips

04 Nov 2016

Exit Planning: Two Baby Steps

In previous blogs, we attempted to dismantle the most common objections owners make to undertaking the planning necessary to exit their companies successfully. Those excuses to avoid exit planning are:

Written by Ronald Oddo | Posted in Exit Tax • Small Business

07 Oct 2016

Exit Planning Excuses: Part II

Previously, we attempted to take the air out of the most common argument owners make for ignoring the planning necessary to successfully exit their companies: They believe that their businesses aren’t worth enough to meet their financial needs. “When it is,” they claim, “that’s when I’ll think about leaving.”

Written by Ronald Oddo | Posted in Small Business • Tax Advice

03 Oct 2016

Exit Planning Excuses: Part I

Like every owner, you will one day exit your business—voluntarily or involuntarily. On that day you will want to attain certain business and personal objectives: the first (and usually prerequisite to all others) is financial security.

Written by Ronald Oddo | Posted in Small Business • Tax Advice

21 Sep 2016

What Is Your Business Really Worth?

For many owners, the answer to one question determines their ability to leave their companies: “How much money will I get when I sell?” This question is indeed critical. Realistically, you can’t exit your business unless you achieve financial independence, and the primary source of that independence is likely to be the funds you receive for your business when you leave.

Written by Ronald Oddo | Posted in Individual • Small Business