blog
January 29, 2018
Research and Development Credits

Both the federal and state research and development credits (R&D credit) are in place to reward those companies that develop new products or new processes....

January 26, 2018
Should I Record Interest Income On My ESOP?

No.  Nothing really happened.  The company makes a contribution of $XX, which is paid the ESOP.  The ESOP turns around a pays the Company $XX for principal and interest.  The checking account did not change.  The expense the company needs to record is the actual value of the shares released to participants....

January 26, 2018
I Went ESOP. When Should I Expect our DOL Audit?

There is a high likelihood that if you are an ESOP, then you will be visited by the DOL (Department of Labor).  This is different than an IRS audit.  The chances from my experience is 20%.  IRS audits are much lower, more like 2%....

January 26, 2018
New: Qualified Business Income Deduction = 20%

A major provision in the Tax Cuts and Jobs Act is a 20% deduction available for pass-through entities with qualified business income. Pass-through entities include sole proprietors, partnerships, and S corporations....

January 25, 2018
What are SARS and Why Would an ESOP Want Them?

This question often comes up when a company goes 100% ESOP.  Prior to the ESOP transaction, ownership had a direct incentive to increase the share price. ...

January 25, 2018
Construction Contracts – Lookback Calculation

If you are looking for a way to kill a few hours to figure out if you owe the IRS just a few bucks, then lookback is for you....

January 25, 2018
Construction Contracts – Completed Contract

The completed contract method is simple since you don’t have to recognize any profit until the contract is actually complete.  There are some important details, but basically you get to wait until the contract is done before you pick up the income or loss....

January 25, 2018
Construction Contracts – Cash Method

The cash method of accounting is one of the two main methods that businesses can use.  The cash method can be used by some construction contractors....

January 25, 2018
Construction Contracts – 10% or Less

Construction contracts are a tricky animal.  There are so many ways to account for them for book and tax purposes and those methods are a bit more complicated than just cash and accrual....

January 23, 2018
Is the Cost of the Company Party Deductible Under the New Tax Law?

As we uncover the details associated with the Tax Cut and Jobs Act and apply the rules to the real-world activities in our trades and businesses we found conflicting messages associated with the deductibility of certain entertainment expenses....

January 23, 2018
Checklist of Common Estate Tax Audit Triggers

About nine percent of the estate tax returns reporting gross estates of $5 or more were audited by the IRS during 2014.  And the bigger the estate the more likely the audit....

January 23, 2018
Deep Dive on 529 Plans

With federal changes to the way 529 plans work in Dec 2017 and MN changes to the way 529 plans work passed in summer 2017 now seems like the perfect time to take a deeper dive into a subject which many people have some awareness around, but perhaps don’t fully understand all the nuance....