Warmest greetings
Ron Barnes, CPA, PFS, Managing Partner
A big one coming up...
It is difficult to believe that it has been over a year since our premiere issue of Knight Moves, and it is even harder to believe that we will be celebrating our 60th anniversary next year.What began as a sole proprietorship on a corner in New Albany has grown into a regional firm of 50+ staff members occupying 20,000 square feet in the beautiful McCauley Nicolas Centre on the Jeffersonville riverfront. We have much to be proud of, and it seemed only fitting that we kick off our anniversary celebration by joining with Business First this month in recognizing the success of other local business leaders and organizations at the inaugural Business of the Year Awards. Our congratulations to the finalists and recipients of the prestigious Eagle Award of Excellence! We look forward to sponsoring this event again in 2006.
As another year draws to a close, we want to express our sincere thanks to you, our clients and friends, for being part of our success, and allowing us to be part of yours. We value our relationships with each of you, and look forward to strengthening them in the coming year. We welcome new clients, so if you know of someone who would benefit from our expertise, please tell them about us. May you be very blessed this holiday season.
Business Valuation
Dan McCauley, CPA, ABV, Partner
Establishing Business Value Before A Sale
What is your business worth? It’s difficult to tell– especially if it’s a family-owned business that is not publicly traded. Typically, the value of such a business will 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. Frequently, it makes sense to have a business appraisal prepared by a professional, especially if you plan on selling the business in the near future.There are a number of ways a qualified appraiser can value the key aspects of a business to arrive at a final figure. As part of the process, the appraiser will provide a valuation report, explaining in detail the specific methodology used for the valuation. This will be invaluable when the buyer conducts his or her own due diligence. The chances of consummating the deal will increase if the buyer knows he or she is dealing with a professional.
Financial Planning
Waynette Scott, CPA, Manager
Giving Away Gifts of Property to Charity
At first glance, the tax rules for charitable donations seem relatively simple: You write out a check to a charity and deduct it on your federal tax return. What’s so hard about that? However, when your charitable donations include gifts of appreciated property, the rules are much more complicated. In fact, they can be downright confusing.Starting point: For this purpose, “appreciated property” is property with a fair-market value in excess of your basis. Ordinarily, your basis is what you paid for the property. But your basis for depreciable property is reduced by the depreciation deductions allowed over the years. In addition, if you acquired the property by gift, you assume the same basis as the donor had immediately before the gift.
Knight Bytes
James Osborne, II, CNA, MCP, MCSA, IT Manager
Alert to Personal Computer Users: Pharming Reaps Data for Criminals
Have you been recently warned about “phishing”? Now there’s another method of identification (ID) theft infiltrating desktops called “pharming.” This latest innovation may be even more insidious than its predecessor.First, let’s explain how phishing works. Typically, you receive an e-mail appearing to come from a financial services company or other firm. The e-mail asks you to update your account information or verify existing records by providing credit card numbers, user names, passwords and the like.
Tax Planning
Diane Kilner, CPA, Manager
Seven Top Tax-saving Ideas at Year-end
With the holidays upon us, now is a good time to figure out how to cut your 2005 tax bill. Although everyone’s situation is different, here are seven popular year-end strategies for individuals and small-business owners to consider.- Charitable donations: As a general rule, the full amount of a cash donation is deductible on the donor’s personal tax return. If a donation is made by credit card at year-end, the gift is deductible in 2005, even if the charge is not actually paid until next year.
Events & People News
Chesscapades
Business First’s inaugural “Business of the Year” Awards Gala, held in the Cascade Ballroom at the Kentucky International Convention Center on December 1st, was a grand success. MNC was honored to be one of four sponsors of this event – the “Academy Awards” of the Greater Louisville business community.Below: Ron Barnes and Delene Murray pictured with “Non-Profit of the Year” Eagle Award recipient Debra Hoffer, President of Junior Achievement, and her husband Allan.
Keeping
Up 1
Make the IRS an Offer It Can’t Refuse
Are you unable to meet your tax obligations with no recourse in sight? One possible solution is to submit an “offer in compromise” to the IRS. If you can show extenuating circumstances and the IRS accepts the offer, you do not have to pay the full amount of tax owed.Keeping
Up 2
For Self-employeds: A New Tax Prescription for Health Insurance
At long last, self-employed taxpayers are on the same tax footing as other business entities concerning health insurance. They can deduct 100% of their health insurance premiums, including amounts paid for family coverage, up to the amount of net income from the business. In the not-so-distant past, deductions were limited to a percentage of the cost. However, the deduction is not permitted for any month in which the taxpayer participates in a plan maintained by an employer or the employer of a spouse.Knightly News
We are pleased to announce that Diana Richmond has accepted a full-time Staff I position with MNC, and Melany Wessels (center) has been promoted to Supervisor effective October 1. Welcome back to Brett Huett who rejoined the firm as Staff II. |  |  |
CongratulationsThe 2005 recipient of MNC’s scholarship to Bellarmine University is... Alicia Schickel. Congratulations Alicia on your academic success! Partners John Pieper and Kenny Adams represented MNC at the luncheon.
MNC was a finalist for a Republic Bank We Care award, recognizing local businesses whose employees are doing great things for the community. Ron Barnes received the “Outstanding Public Service” award from the Indiana CPA Society at the annual CPA Celebration in Indianapolis in October. |
Welcome!
Matt Neely, Gina Lower and Amy Deno (l to r) have joined the firm as interns. |  |  |
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