Returning Value Blog

Understanding How Present Value Works in the Context of Business Valuation

Consider the following scenario: You and a friend are taking in a ballgame one lovely evening at the old ballpark. All is well until that friend of yours mentions that he forgot his wallet. Said friend, then sheepishly asks if he can borrow $50 to fund his consumption of requisite ballpark goodies—a hot dog, a frosty beer, peanuts (what would a ballgame be without peanuts?) and ice cream.

Understanding the Differences Can Help Voters Make Informed Choices

As we near the home stretch of this year’s presidential campaign, the din of July’s Republican and Democratic national campaigns seems like a distant memory. Indeed, the presidential race has taken so many unexpected twists and turns in the weeks since those two conventions, even jaded veteran political journalists are shaking their heads in disbelief.

Tax rules may affect your donations

Do you own shares of stock that you want to contribute to charity? Before you pull the trigger on the donation, make sure that you give away the “right kind” of securities instead of the “wrong kind.” It can make a big difference on your tax return.

How to value business interests

It is often difficult to put a price tag on a company that is not publicly traded. For instance, the value of a family-owned business will typically exceed the total value of the hard assets such as equipment and inventory. In addition, assigning a value to intangible assets such as goodwill is a difficult proposition at best.

If you’re an employer with full and part-time employees, get ready for potentially big changes in how certain employees may be entitled to overtime pay. The ramifications of new governmental regulations could have a sizeable impact on your bottom line—and if you’re an employer that’s affected, it may not take long to feel the bite.

Just in time to make a splash in advance of their national convention in Cleveland, Republicans in the U.S. House of Representatives released a 35-page tax reform report on June 24 that proposes fundamental changes in several significant areas. Among the most important changes are proposals to slash tax rates for corporations, pass-through businesses, and most individuals.

Perhaps you’ve heard of the Last In, First Out (LIFO) method, but were uncertain what it means, what it’s used for, and why it may be important.

Maximize tax benefits for passive activities

Do you own investment real estate—say, an apartment building—that you rent out to tenants? Real estate can be a valuable and reliable source of income. Of course, the rental income is subject to tax, but the resulting tax liability may be offset by deductible expenses. In some cases, you might even qualify for a loss.

When it comes to evaluating the fair value of income-producing real estate properties, capitalization rates – or cap rates, as they’re widely known – are among the most useful tools available for buyers, sellers, property appraisers, bankers, and financial statement auditors.