Ham, Langston & Brezina, L.L.P.

Financial forecasts support strategic planning by helping you allocate resources efficiently, manage risks effectively and optimize capital investments. In today’s dynamic markets, accurate forecasts go beyond historical data, integrating market trends, professional insights, advanced forecasting techniques and AI tools. The optimal approach depends on various factors, such as the forecast period, demand stability, data availability and business offerings. Contact us to help you forecast smarter. From developing realistic assumptions and reliable models to tracking forecast accuracy and updating for market shifts, we’ve got you covered.

Running a successful business can force you to make tough decisions that expose you to legal claims. To hedge against this risk, business owners can buy directors and officers (D&O) insurance. These policies financially protect business owners, executives and other leaders from legal claims arising from management-related decisions and actions. Under the right circumstances, coverage can benefit some small to midsize businesses. To decide whether it’s right for you, first assess your litigation risks. Also consider if having a D&O policy would help you recruit and retain executives and other leaders. Contact us for more information and help shopping for coverage if you decide to buy.

Your estate plan is the perfect place to make charitable gifts if you’re charitably inclined. One vehicle to consider using is a donor-advised fund (DAF). It allows you to set aside funds for charitable giving while you’re alive, and you (or your heirs) can direct donations over time. In your estate plan, you can designate your DAF as a beneficiary to receive assets upon your death, ensuring continued charitable giving in your name. A DAF generally requires an initial contribution of at least $5,000. It’s typically managed by a financial institution or an independent sponsoring organization, which, in return, charges an administrative fee based on a percentage of the account balance.

A variety of tax-related limits that affect businesses increased in 2025 based on inflation. For example, the Section 179 expensing limit has gone up to $1.25 million from $1.22 million. Also up are the income-based phaseouts for certain limits on the Sec. 199A qualified business income deduction for owners of pass-through entities. And most limits related to employer-sponsored retirement plans, such as 401(k)s, are higher this year. This includes employee contribution limits for 401(k) plans, which are up $500 this year to $23,500. With Republicans in control of the White House and Congress, there could be more tax changes this year. Contact us if you have questions about your situation.

An inheritor’s trust is a specialized estate planning tool designed to protect and manage assets you pass to a beneficiary. One of its primary advantages is asset protection. It allows your beneficiary to receive his or her inheritance in trust rather than as an outright gift or bequest. Thus, the assets are kept out of his or her own taxable estate. To ensure complete asset protection, the beneficiary must establish an inheritor’s trust before receiving the inheritance. The trust is drafted so that your beneficiary is the investment trustee, giving him or her power over the trust’s investments. Your beneficiary then selects an unrelated person as the distribution trustee.

Taxpayers preparing to file their 2024 tax returns may wonder if they qualify for a home office tax deduction. Keep in mind that it comes with specific requirements. Employees working remotely at an employer’s request don’t qualify. Self-employed individuals whose homes serve as their principal place of business may be eligible. However, the portion of the house claimed as a home office must be used regularly and exclusively for business. In one case, a married couple claimed a deduction for 40% of their home. The IRS found that only 25% met the business use standard. The U.S. Tax Court agreed (TC Memo 2024-112). To learn more: https://bit.ly/4hBknyP

Traditional estate planning strategies generally are based on the assumption that all family members involved are U.S. citizens. However, if you or your spouse is a noncitizen, special rules apply that require additional planning. Noncitizens who are deemed to be domiciled in the United States are subject to U.S. gift and estate taxes on their worldwide assets, much like U.S. citizens. A significant difference between U.S. citizens and noncitizens, and a potential tax trap for the unwary, is that the marital deduction isn’t available for transfers to noncitizens. If you or your spouse is a noncitizen, talk to us about the potential estate planning ramifications.

Small to midsize businesses generally don’t have massive marketing departments with limitless resources. You’ve got to pursue savvy campaigns while controlling costs. Here are three ways to get more bang for your marketing bucks: 1) Set a budget and adjust it regularly by comparing “marketing spend” with return on investment. 2) Use metrics and technology. Relevant metrics may include lead conversion rate and customer acquisition cost. Search engines and social media channels can provide insightful analytics. 3) Avoid common mistakes, such as not defining your target audience, overinvesting in paid ads and ignoring the power of referrals. Contact us for help managing your marketing costs.

Does your business need an infusion of cash to take it to the next level? Key options include debt financing, where you borrow and repay while keeping ownership, and equity financing, where you trade ownership for capital and expertise. A flexible alternative is hybrid financing, which combines aspects of debt and equity. Examples include convertible notes and revenue-based funding. To secure funding, you’ll need accurate financial statements, including income statements, balance sheets and cash flow reports, as well as detailed records to demonstrate your business’s health and potential. We can help you find the optimal solution based on your business goals, growth stage and risk tolerance.

Does your estate plan leave specific assets to specific family members? If so, you may want to reconsider your plan. While it may be tempting to, for example, leave your son your classic car and give your daughter shares of stock, doing so risks leaving your daughter significantly less if the stock price tanks. However, if it’s important to you that certain heirs receive certain assets, there may be planning strategies you can use to ensure your heirs are treated fairly. For example, to avoid unintended results, consider distributing your wealth among your heirs based on percentages or dollar values rather than directing specific assets to go to specific people. Contact us for details.