The Farmington team of seasoned partners and experienced associates take the time to understand the values and needs of each client. In addition to our steadfast obligation to quality, we take pride in the personalized relationships we have developed with our clients. Our integrity and passion for the business result in reliable, expert work and our commitment to you results in the attention our clients deserve. This office provides the traditional compliance services of audits, reviews, compilations, and annual tax filings, in addition to business valuation and forensic accounting.
UHY Advisors and UHY LLP (“UHY”) announced that they will add to their portfolio in the Northeast with the acquisition of the professional services firm Pratesi, Salemi & Company LLC and the valuation firm Brentmore Valuation Advisors, located in West Hartford, Connecticut. Both firms will operate under the UHY banner effective November 4, 2016.
The prudent businessperson is always cautious when he or she is offered a great bargain on real estate, equipment, a business interest, or some other property that just might be too good to be true. Even in connection with ordinary business transactions but especially when considering taking over a property or business that in a bargain because of some legal wrinkle, you should consider whether there might be some tax liability attached to the bargain that could come back to haunt you down the road.
The IRS has rules that limit the deductibility of expenses and losses from a hobby or activity not engaged in for profit. If the IRS determines that an activity is not profit-driven, deductions from the activity are limited to the amount of income the activity generates. Losses from such activities cannot be used to offset other income, such as salary or investments.
National Taxpayer Advocate Nina Olson, in a recent report to Congress, urged the IRS to change its culture from one that is enforcement-oriented to one that is service-oriented. Such a change, Olson provided, would create an environment that encourages taxpayer trust and confidence. In the report, Olson also highlighted key areas for tax simplification and the top-10 most litigated tax issues.
First-time business sellers often must negotiate an M&A deal with far more experienced buyers. If your buyer already has several acquisitions under its belt, you could be at a competitive disadvantage. Experienced M&A advisors, who can fight on your behalf for the best price and deal terms, are essential to overcoming this strategic disadvantage.
Bruce Del Conte
6 Executive Drive, Suite 111
Farmington, CT 06032