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Named One of
America’s Top 25 Accounting Firms
by Inside Public Accounting
Special challenges for
LLCs
The at-risk rules present special challenges for limited liability
companies (LLCs). Unlike general partners, who are personally liable for
most partnership debts, LLC members are generally shielded from personal
liability beyond their capital contributions.
To fully deduct losses, LLC members may need to take additional steps to
ensure their share of debt is at risk. They can do this by pledging
nonbusiness property as collateral, by structuring debt as qualified
nonrecourse financing or by assuming personal liability for the debt
(for example, by borrowing the money individually and then contributing
it to the LLC).
Guaranteeing the LLC’s debt, however, generally is not enough to assume
personal liability.
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What have you got to lose?
Maximizing deductions for partnership and LLC losses
The deductibility of business
losses is one of the most complex and misunderstood areas of
federal taxation. Many partners and limited liability
company (LLC) members mistakenly believe that, provided they
have adequate tax basis in their interests, they can deduct
their distributive share of an entity’s losses. Yet basis is
only one of a triad of tax rules that limit losses. To
determine whether your losses are deductible, you must also
consider the passive loss and at-risk rules. This article
looks at how to maximize your deductions in this area.
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Tick tock
Timing is everything when making philanthropic decisions
If philanthropy is important to you, determining the best
time to make charitable gifts can be a complex decision.
There are many factors, both practical and financial, to
consider. The most important ones are whether to make
donations during your lifetime or after your death through
your will or living trust and the tax implications of your
decision. This article discusses the advantages and
disadvantages — including the income and estate tax impact —
of lifetime gifts and bequests.
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Having trouble keeping
your employees?
9 ways to plug the drain
Involuntary employee turnover
is a huge drain on any business. In fact, it’s not unusual
for total costs (including lost productivity and replacement
expenditures) for a single lost employee to reach 150% of
the annual salary, especially for higher paid employees.
This article discusses nine ways you can improve your
employee retention rate, such as providing employees
opportunities for challenge and development, as well as
sharing more information on company strategies, performance,
operations and key business decisions.
Read more
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Be sure your home is
adequately insured
This brief article explores
homeowners insurance. Given the fact that your home is
possibly your most valuable asset, it pays to dust off
your policy and make sure it’s up to date. For example,
does it accurately state your home’s replacement value?
It may not if you’ve done extensive remodeling or live
in an area where construction costs have shot up. It
also discusses the need to watch out for policy
exclusions and to not overlook liability coverage.
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