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.
Tag Archive for Investment
I am pleased to announce another successful settlement for a client.
IRS denied a big deduction based on a Ponzi type investment stating the taxpayer had claimed the deduction in the wrong year. It must be the year it came to his attention and only up to the amount lost especially if there is a chance to recover some in the future.
The matter was set to go to trial in Miami, but I reached agreement he would deduct 80% in the year the loss was claimed and 20% in the year in which there was certainty he had lost everything. That year is still open to claim the 20%. Protective filings were made by his accountant.
The turning point was making clear the evidence we would present to back-up the client’s claim. This convinced the Read more
Not all dividends are treated the same and the nuances can make a big difference to your ultimate investment return.
“Regular Dividends” and “Qualified Dividends”
In general, there are two different types of dividends – “regular dividends” and “qualified dividends”. One is taxed far more favorably than the other. A so-called “qualified” dividend is given beneficial tax treatment because it is taxed at a lower more beneficial long-term capital gains tax rate. For most individuals this rate is currently at 15%, but the rate can be lower or higher for very low or very high income earners.
For individuals whose income tax rate is in the 10% or 15% brackets, then the dividend Read more