Darrow Wealth Management

JANUARY 16, 2025

Similarly, interests in a closely-held business will also need a professional valuation. You’ll need to fill out paperwork with the custodian if there isn’t a financial advisor managing the accounts. Inherited real property, like a house, will need to be appraised by a professional.

Assets 98

Assets Estate Planning Taxes Wealth Management 98

Harness Wealth

FEBRUARY 4, 2025

Risks: Illiquidity, subjective valuation, authenticity risks, fraud risks, market demand fluctuations, and high transaction costs. However, some alternative investments may generate UBTI , which could trigger unexpected taxes within tax-advantaged accounts. This article is a product of Harness Tax LLC.

Taxes 52

Taxes Investments Investing Startup 52

Abnormal Returns

SEPTEMBER 8, 2024

(awealthofcommonsense.com) Early in retirement is the time to do some tax planning. worksinprogress.co) Good luck trying to time the stock market using valuation metrics. whitecoatinvestor.com) Three reasons to buy Josh Brown's new book "You Weren’t Supposed To See That." ritholtz.com) How pour-over coffee got so good.

Tax Planning 298

Tax Planning Valuation Retirement Taxes 298

Nerd's Eye View

JULY 7, 2023

Also in industry news this week: A recent survey indicates that a strong majority of financial advisory clients have maintained their trust in their advisors despite the investment market setbacks experienced last year A report from the SEC shows that a majority RIAs have mandatory arbitration clauses in their client agreements, a practice that has (..)

Financial Planner 246

Financial Planner Tax Planning Clients Valuation 246

Nerd's Eye View

MAY 12, 2023

Also in industry news this week: Why industry groups representing investment advisers and others have blasted an SEC proposal that would significantly expand its Custody Rule A new study suggests that organic client growth and profit margins are the key factors driving RIA valuations, with the firm’s affiliation model having little to no impact (..)

Financial Planner 246

Financial Planner Clients Tax Planning Food 246

Darrow Wealth Management

JULY 30, 2024

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. When you make an 83(b) election, you’re opting to pay tax on unvested shares now, instead of when the stock vests. It can also preclude some tax planning strategies down the road.

Taxes 103

Taxes Tax Planning Startup Valuation 103

Harness Wealth

FEBRUARY 26, 2023

Cost-saving tax planning can be much more difficult to implement after your company is well-established and has reached the stage where an IPO, merger, or acquisition becomes a likely event. This type of stock option is only taxed upon the sale of the stock, and the valuation requirements are less stringent.

Tax Planning 52

Tax Planning Startup Taxes Planning 52

Harness Wealth

FEBRUARY 27, 2023

In a cash purchase situation, the equity simply converts to cash and you owe taxes on the gains you made. That’s because Qualified Small Business Stock (QSBS) allows founders to exclude the greater of $10 million or 10 times your tax basis from being taxed.

Tax Planning 52

Tax Planning Startup Taxes Planning 52

Darrow Wealth Management

SEPTEMBER 7, 2023

The upside of a well-timed exercise is clear: potential for significant tax savings and reducing the time you need to hold the stock to qualify for long-term capital gains tax rates. Unfortunately, for those tax savings to materialize, the post-IPO stock price at sale must be considerably more than the pre-IPO valuation at exercise.

Wealth Management 85

Wealth Management Taxes Tax Planning Valuation 85

Darrow Wealth Management

JULY 30, 2024

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. When you make an 83(b) election, you’re opting to pay tax on unvested shares now, instead of when the stock vests. It can also preclude some tax planning strategies down the road.

Taxes 52

Taxes Tax Planning Startup Valuation 52

Harness Wealth

MARCH 18, 2022

For tax purposes, those initial shares have a very low value (typically a fraction of a cent). Increasing Valuation. When the company raises money, they’ll set a valuation with the investors and sell them new shares at this new price per share. . New valuation = (Existing shares + New shares being sold) x New price per share.

Valuation 52

Valuation Taxes Tax Planning Startup 52

Darrow Wealth Management

MARCH 24, 2024

6 tax strategies for incentive stock options and AMT Triggering the alternative minimum tax isn’t the end of the world, but you don’t want to do it by accident. If the stock drops significantly during the year and you keep holding the shares, you could still trigger the AMT at the old, much higher, valuation.

Taxes 59

Taxes Tax Planning Planning Sales 59

Darrow Wealth Management

AUGUST 28, 2023

Make your business more sellable later by getting advice now Business brokers often recommend getting a valuation done years before expecting to sell the company. Both professionals often help sellers with valuation, find/vet potential buyers, advise on deal structure/terms, etc.

Sales 98

Sales Estate Planning Wealth Advisor Taxes 98

Darrow Wealth Management

FEBRUARY 20, 2023

Here are key provisions to gather: What type of equity is being offered and how many shares Strike or purchase price for the equity Current 409a valuation Vesting schedule Warning! This can also help with longer term tax planning optimization. Unpack the equity offer What does the initial offer entail?

Startup 105

Startup Taxes Wealth Management Tax Planning 105

Darrow Wealth Management

MARCH 24, 2024

6 tax strategies for incentive stock options and AMT Triggering the alternative minimum tax isn’t the end of the world, but you don’t want to do it by accident. If the stock drops significantly during the year and you keep holding the shares, you could still trigger the AMT at the old, much higher, valuation.

Taxes 52

Taxes Tax Planning Planning Sales 52

Darrow Wealth Management

DECEMBER 5, 2022

Donor-advised funds charge fees and privately held assets require a valuation. Consider these other tax-saving gifting strategies. Bunching donations, or making several years of gifts in one year, can help ensure taxpayers benefit from itemizing deductions. Consider the cost of giving appreciated securities versus other approaches.

Taxes 105

Taxes CFP Wealth Management Valuation 105

Harness Wealth

MARCH 3, 2023

A Stripe liquidity event is coming Rumors of a Stripe IPO began circling in 2021, after a $600 million Series H financing round pushed the company’s valuation to a massive $95 billion. Since then, in the midst of a sleepy IPO market and macroeconomic headwinds, Stripe’s plans have evolved. Do you have Stripe employee equity?

Taxes 52

Taxes Valuation Startup Sales 52

Brown Advisory

APRIL 1, 2020

We believe that the current environment offers a number of strategic planning opportunities to improve your financial plan, enhance wealth transfers to heirs or charities, minimize the impact of income taxes and broadly help you advance your progress toward long-term goals. GIFT AND ESTATE TAX PLANNING Outright Gifting.

Strategic Planning 52

Strategic Planning Planning Marketing Marketing 52

Brown Advisory

APRIL 1, 2020

We believe that the current environment offers a number of strategic planning opportunities to improve your financial plan, enhance wealth transfers to heirs or charities, minimize the impact of income taxes and broadly help you advance your progress toward long-term goals. GIFT AND ESTATE TAX PLANNING.

Strategic Planning 52

Strategic Planning Planning Marketing Marketing 52

International College of Financial Planning

NOVEMBER 10, 2021

In this course program, you’d be trained in concepts such as capital budgeting, risk management, and option valuation to name a few. Retirement Planning Course – Retirement planning is gaining huge popularity among Indians. As the saying goes CFPs don’t have to hunt for jobs as jobs hunt for them.

Investment Advisor 52

Investment Advisor Investments Investing Certified Financial Planner 52

Harness Wealth

MARCH 23, 2023

Private company RSUs If you have RSUs in a private company, the value of your shares is based on the current 409A valuation. A 409A valuation is an appraisal that must be produced by an independent third-party, and is meant to reflect the current fair market value of the company. What are double-trigger RSUs?

Taxes 52

Taxes Startup Tax Planning Valuation 52

Harness Wealth

MARCH 9, 2023

Reddit has its sights set on a $15 billion valuation for its IPO , but achieving that goal may prove challenging. However, Fidelity later reduced the valuation to $6.6 Before you rush to any decisions, book an Equity Tax Planning Session today. Tax services provided through Harness Tax LLC.

Planning 52

Planning Taxes Advertising Tax Planning 52

Brown Advisory

DECEMBER 4, 2017

presidential election, we have grappled with the lack of clarity regarding the details of new tax legislation. The outcome of the tax reform debate is likely to impact how we advise clients on tax planning, estate planning and a host of other topics. Since last year’s U.S. Those conditions do not exist today.

Planning 52

Planning Taxes Clients Tax Planning 52

Bell Investment Advisors

DECEMBER 13, 2022

By now you have probably realized that, as an employee stock plan participant, you’re dealing with a lot of moving parts. A “seat of the pants” approach is likely to result in missing deadlines and peak stock valuations, i.e., money left on the table. Still, it is important not to let the tax tail wag the investment dog.

Planning 52

Planning Taxes Risk Tolerance Sales 52

Carson Wealth

JULY 26, 2023

One popular option is setting up an employee stock ownership plan (ESOP), where employees are technically buying equity in the business through a retirement plan. That can also help to retain key talent since equity promotes a sense of ownership, which can lead to loyalty and improved performance.

Planning 52

Planning Retirement Taxes Financial Planner 52

Harness Wealth

OCTOBER 5, 2024

This arises when the per-share purchase price in a secondary sale exceeds other measures of the private company stock’s fair market value, such as the company’s option price or a recent 409A valuation. Popular marketplaces include: Forge SharesPost EquityZen Hiive 2.

Startup 52

Startup Sales Taxes Consulting 52

Zoe Financial

FEBRUARY 21, 2023

Dear Zoe Experts, I’ve been looking for tax planning guidance and am deciding whether to hire a financial advisor or an accountant. They can provide tax preparation, bookkeeping services, business consulting, budgeting assistance, auditing services, payroll management, business valuation services, and more.

Financial Advisor 40

Financial Advisor Accounting Certified Financial Planner Certification 40

Zajac Group

JULY 8, 2024

But for improved personal financial and tax-planning projections, you may also want to consider how a range of variables factor into the equation. If even a worst-case valuation of your equity compensation won’t ruin you, you may decide to take on the concentration risk anyway, in pursuit of a potentially greater reward.

Taxes 52

Taxes Numbers Wealth Accumulation Valuation 52

Harness Wealth

APRIL 17, 2023

By regularly monitoring the fair market value of your shares and the 409A valuation of your company, you’ll be quick to know how fair of a deal you’re getting. Cons: Discounted pricing: Just as tender offers can sometimes be priced at a premium, they can also sometimes be priced at a discount.

Startup 52

Startup Taxes Risk Tolerance Sales 52

Harness Wealth

MAY 9, 2025

A valuation will focus heavily on the strength and stability of your client relationships and the expertise within your team. This can also influence the exit plan outlined in partnership agreements and the future benefits for departing partners differently than in a non-family accounting practice.

Taxes 52

Taxes Planning Accounting Clients 52

Darrow Wealth Management

NOVEMBER 14, 2024

Video: How NSOs are taxed Infographic: non-qualified stock options tax at grant, vesting, exercise, and sale How non-qualified stock options are taxed at exercise As explained above, at exercise, the spread is included in your taxable income. If the company is private, the 409a valuation is used as the current price at exercise.

Taxes 54

Taxes Sales Wealth Management Planning 54

The Big Picture

AUGUST 15, 2023

It’s part of their own tax planning. What’s the valuation? RITHOLTZ: But some of these guys are sitting with a lot more than a billion dollars, and why not? Unless they have their own foundation. I could give you a list of 30 billionaires. They all set up their own foundations. I like Buffett’s idea.

Management 130

Management Investments Investing Government 130

Ballast Advisors

SEPTEMBER 5, 2024

Some clients opt for more aggressive gifting strategies, especially with the sunset of estate tax exemptions looming, which allows them to utilize their lifetime gift exemptions effectively. Inheritance Tax Planning Inheritance taxes, including estate and gift taxes, are pivotal in estate planning discussions.

Estate Planning 40

Estate Planning Taxes Planning Tax Planning 40

Brown Advisory

AUGUST 1, 2019

Paying tax now instead of later goes against the grain of conventional tax planning. This option, available before the 2017 tax overhaul, was helpful if, for example, the market declined substantially after a conversion. The Roth account can grow tax-free until the owner’s death without making any distributions.

Planning 52

Planning Distribution Taxes Accounting 52

Brown Advisory

AUGUST 1, 2019

Paying tax now instead of later goes against the grain of conventional tax planning. This option, available before the 2017 tax overhaul, was helpful if, for example, the market declined substantially after a conversion. The Roth account can grow tax-free until the owner’s death without making any distributions.

Planning 52

Planning Distribution Taxes Accounting 52

The Irrelevant Investor

JANUARY 2, 2021

The tax burden on large-cap stocks has been falling for a long time, lining shareholder's pockets. If Biden has it his way, corporations will pay more taxes than they have in the recent past. Cembalest notes, "In aggregate, Biden’s corporate tax plans would raise $2.2 multiplier effects)." multiplier effects)."

Taxes 52

Taxes Assets Government Tax Planning 52

Harness Wealth

MAY 9, 2025

A valuation will focus heavily on the strength and stability of your client relationships and the expertise within your team. This can also influence the exit plan outlined in partnership agreements and the future benefits for departing partners differently than in a non-family accounting practice.

Taxes 52

Taxes Accounting Planning Clients 52