Business

A Business Check-up Checklist

A Business Check-up Checklist

If you are a business owner, then you, no doubt, have or will go through the process of finalizing your financial statements and gathering your other accounting records and tax documents for your CPA. I encourage you to take time to also locate your...

Changes to Valuation Regulations Will Impact Transfers of Family Businesses

Changes to Valuation Regulations Will Impact Transfers of Family Businesses

On August 4, 2016, the U.S. Treasury Department issued proposed regulations under Internal Revenue Code Section 2704. If finalized as proposed, the new regulations will eliminate many valuation discounts that currently apply to certain transfers of closely-held entities (including family-owned corporations and limited liability companies) between family members.

Under current regulations, when a family member gives another family member a portion of the family-owned entity, the value of the gift may be reduced from the full enterprise value because the recipient is usually unable to liquidate the business or transfer the interest to third parties outside the family. The amount of the reduction (valuation discount) is typically determined by a certified appraiser and often ranges from 25% to 40%. Under the proposed regulations, the same transfer between family members would be valued without applying these discounts.

Commercial Listing Contracts:  Risky Business

Commercial Listing Contracts: Risky Business

When someone decides to sell commercial real estate, he or she will often hire a licensed real estate broker to assist in the process. A licensed real estate broker will require that the property owner sign the form WB-5 Commercial Listing Contract – Exclusive Right to Sell (the “Listing Contract”). This is a document approved for use by the Wisconsin Department of Regulation and Licensing as the primary contract between the broker and the property owner with respect to the listing and eventual sale of the property and the payment of the broker’s commission.

Landlord/Tenant Law has Significant Changes

Landlord/Tenant Law has Significant Changes

A new law passed earlier this year made several changes to Chapter 704 of the Wisconsin Statutes that impact the rights of residential landlords and tenants. The following is a brief summary of some of the most significant changes:

1. Disposing of Tenant’s Personal Property. Absent a written agreement to the contrary, a landlord may now presume that any property left behind by the tenant has been abandoned and may dispose of such property as the landlord deems appropriate (including by private or public sale). For this provision to apply, the landlord must provide the tenant with written notice prior executing the lease that landlord does not intend to store the tenant’s property.

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