Section 1250 property is your depreciable real property—like buildings—owned for more than one year and used in your business, trade, or rental activity. It’s important to identify your 1250 property because the gain on the sale of such property is taxed differently than ordinary assets, capital assets, and other 1231 assets. What Is Section 1250…
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Unsecured Business Lines of Credit: What It Is & How It Works
An unsecured business line of credit is a revolving loan that allows you to withdraw funds up to a certain credit limit. You can get quick access to funds by drawing upon the line in any amount you may need, receiving the funds in your account, and paying back the drawn funds over time. What…
Landscaping Insurance: Cost & Coverage for Your Business
Landscaping insurance refers to a policy, or combination of policies, that protects your business assets against claims that your business was negligent and caused harm. Landscapers need coverage for third-party claims, employee injuries, and business property damaged by theft or vandalism. Landscape insurance costs for general liability will range from $500 to $2,300 annually. Landscaping…
What Are Accounting Controls? Types & Examples
Accounting controls are methods and procedures that prevent, detect, and correct misstatements that occur within the financial accounting process until the formation of the financial statements. They are one type of a larger set of internal controls that every business should follow. When we talk about accounting controls, we’re referring to controls within the accounting…
What Is a Reviewed Financial Statement? Scope & Relevance
A reviewed financial statement (FS) is a set of financial statements that a certified public accountant (CPA) has reviewed. In a review, the CPA only performs analytical procedures and inquiries to check whether the FS has no significant modifications and is compliant with the US GAAP. Unlike an audit, reviews aren’t extensive and detailed. They…
Loan-to-Cost Ratio: What It Is & How to Calculate It
The loan-to-cost ratio, also known as LTC, is a calculation that’s used to evaluate the costs of a commercial real estate project. It is calculated by taking the loan amount of a commercial mortgage and dividing it by the property’s total project costs. It is reflected as a percentage. Lenders use the LTC ratio to…
Special Event Insurance: Cost & Coverage
Special event insurance is primarily a liability insurance policy for a business, vendor, or individual hosting an event. The policy provides coverage for injuries and damaged property, with additional options like weather cancellation. Unlike other policies, special event insurance is a policy with one payment, with average premium costs starting at $100 or $500 for…
What Is an Audited Financial Statement? Contents & Uses
An audited financial statement (FS) is a set of financial documents examined by an independent CPA. The audit report attached to the complete set of FS provides an opinion on whether the FS presents fairly, in all material respects, and on the company’s financial position, operations, and cash flows. It is mandatory for publicly listed…