Walsh v. Vinoskey This case was an appeal from the well-publicized district court case regarding the violation of ERISA regarding the sale of stock by the company owner to a company ESOP. The appellate court affirmed that the district court did not err, finding that the owner had extensive knowledge of the company and prior  Continue Reading »

Official Committee of Unsecured Creditors v. Calpers Corp. Partners, LLC In a bankruptcy-cum-Daubert case that turned on solvency, a court recently rejected both parties’ claims that the opposing financial expert testimony was inadmissible. Among the myriad of attacks (all unsuccessful) against the experts was the plaintiff’s claim that the debtor’s expert had relied on management  Continue Reading »

When individual taxpayers claim deductions for bad debt losses, the IRS is always skeptical. Why? Losses from purported loan transactions often fail to meet the tax-law requirements for bad debt loss deductions. For example, a taxpayer might try to write off a capital contribution to a business entity that underperformed. Or a taxpayer might have  Continue Reading »

There’s still time to take steps to significantly reduce your Maine business’s 2017 income tax bill and possibly lay the groundwork for tax savings in future years. Here are five year-end tax-saving ideas to consider, along with proposed tax reforms that might affect your tax planning strategies. 1. Juggle Income and Deductible Expenditures If you  Continue Reading »

These days many college students are leaving school with an overwhelming amount of debt. However, there are some cases where student loans are discharged (also known as being cancelled or forgiven). In other cases, these loans are paid off by an employer. With both of these actions, there are tax consequences for the student loan borrowers.  Continue Reading »

Many business owners and executives feel like they’re admitting defeat when filing Chapter 11 bankruptcy, but it shouldn’t be that way. Chapter 11 immediately freezes all financial claims against the company and stops lawsuits and collection activities. The automatic stay provision of Section 362 in the bankruptcy code is the most important provision in achieving this goal.  Continue Reading »

Many banks in Maine, and other states, remain hesitant about loaning money to start-ups and small business owners, even nearly a decade after the financial crisis of 2008. Stricter lending policies often make applying for financing a nerve-wracking and time-consuming process. If you need a loan to start or expand your business, here are some  Continue Reading »

If you participate in a qualified retirement plan, such as a 401(k), profit-sharing, or Keogh plan, through your job or self-employment, you might be allowed to borrow from the account. It’s important to note that the borrowing option is not available for traditional IRAs, Roth IRAs, SEPs or SIMPLE-IRAs. In the right circumstances, taking out a  Continue Reading »

When purported loan payments are recast as corporate distributions to shareholders, there can be negative tax consequences. The courts, in some cases, have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments. As such, the withdrawals triggered taxable dividends and capital gains for the shareholders. Corporate Distribution  Continue Reading »

Because of their advantageous tax-free treatment, structured settlements are typically associated with the payment of personal injury damages. However, some business purchases and buyouts can also benefit from structured settlements using annuity payments from an insurance company. While payments from these non-personal injury cases are not tax-exempt, the recipient only owes taxes on the amount of  Continue Reading »