With some of the most expensive real estate in the country, New York has no shortage of high-priced homes on the market. Although the average New Yorker will settle for a decent sized apartment in a nice neighborhood, many of the city’s upper-class millionaires will spare no expense when purchasing a home in the Big Apple. With the city set to roll out a higher tax rate on these multimillion-dollar mansions July 1st, it’s no surprise that home buyers and real estate agents alike are rushing to close their transactions.

This “mansion tax” will become staggered as opposed to a blanket rate of 1% on sales over $1 million. The updated law will keep the 1% rate for the $1-2 million range but will now mandate 1.25% on deals over $2 million and 3.9% on deals over $25 million. This increase marks a significant impact on home buyers in the market, considering the price tag on many desirable homes in the area are worth well over $2 million. New York officials have attempted to appease those affected by ensuring that the funds collected from the increase will go towards helping the community. The proposed plan will use the estimated additional $365 million a year to repair and revive the city’s subway systems.

In response to the news, the New York real estate community has seen a rise in deal closures as the deadline looms. Experts have said that the tax change hasn’t drawn in a massive number of new buyers but has changed the attitudes of those who were in the market to buy. In the past year, many believed potential residents were leaning towards renting over buying in such a tight market illustrated in the 6% decrease in deal closures. June is expected to be a good sales month as buyers rush to avoid the new tax, and it will be interesting to see how the overall sales data will be affected the rest of the year. In several cases, contracts are even being structured to include repercussions for the seller if the sale is delayed past the June 28th deadline.

In any major transaction, consulting with tax experts is one way individuals can educate themselves on policy changes and learn how their life decisions may impact their tax situation.

Talley’s experienced team of tax professionals provide comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

In the past two years, large cities and tourist hot spots have been exposed to the growing micro-mobility services industry, including electric scooters, bikes, and mopeds. Bird, Lime, Spin, Scoot, Skip, Jump, and Motivate remain the biggest names in the business, with several other smaller brands popping up on a more local scale. With differentiation being minimal, many believe that the industry only has room to shrink, particularly as more prominent names like Uber and Lyft begin to invest. In line with this theory, the industry leader Bird announced its acquisition of competitor Scoot for an estimated $25 million, a far cry for a company valued at $71.5 million.

Although Bird is the powerhouse of the industry founded in 2017, and now operating in 100+ cities worldwide, the number of competitors continues to be the biggest challenge for all groups involved. Scoot, on the other hand, has functioned on a much smaller scale since 2012, only operating in San Francisco, Barcelona, and Chile. San Francisco rejected a Bird permit bid to operate in the city last year, so this new deal will ultimately allow Bird to get its foot in a previously closed door. The addition of Scoot’s mopeds and scooters will also grow the Bird range of vehicles even more after the introduction of its Bird Cruiser, an e-bike/scooter crossover, from earlier this year.

San Francisco’s denial of Bird’s permit bid did not surprise many, as cities feel the electric transportation devices may cause more harm than good. Add this to the list of challenges facing the growing micro-mobility services industry, which includes damage and theft of fleets, irresponsible use by riders, annoyed residents, pollution, and the risk of public transportation obsolescence. Overall, the Bird acquisition of Scoot may just be the beginning of the industry’s consolidation. It will be interesting to watch which bigger players will buy out smaller sized firms in the coming years. Ultimately, industry specialists believe that many of these micro-mobility companies may finally be able to turn a profit if this is the case.

Talley LLP understands the challenges facing entrepreneurs with generating and protecting income. Whether you’re looking to improve your profitability or build your brand through a business transaction or capital raise, Talley is the premier consulting and financial services firm dedicated to strategic business solutions that deliver meaningful results.

The year has been off to a rocky start for Uber, as they are experiencing the highs and lows of going public. Although their tumbling share price is currently a main worry for the company, it seems that the rideshare giant may be facing even more problems regarding their tax situation. This week, Uber’s SEC filing showed that the company is currently under audit by the IRS as well as other foreign authorities.

The main tax returns under question are for the year 2013 and 2014, with the primary cause related to Uber’s transfer pricing positions. These are essentially how Uber allocates the locations of its different incomes and costs. Additionally, in many countries, including the United States, the United Kingdom, Mexico, Brazil, Australia, India, and others, the company’s 2010-2019 returns are still open and under question. Although Uber has stated they are prepared for the additional tax liability, the company cannot estimate the total liability at this time.

It is entirely possible that in the next year Uber’s gross unrecognized tax benefits will be subject to substantial changes, with the company noting they estimate that the reductions will be at least $141 million. Considering Uber has had tax issues in the past, particularly regarding international activities since its start in 2010, this might not be the end of the company’s struggles with the IRS and many foreign tax jurisdictions.

For the future, many predict that these audits may also lead to more problems for Uber’s tax situation with respect to the classification of its drivers. Over the years the company has tried to categorize its workforce as independent contractors rather than employees to save on tax liabilities. The increased attention on their financials and tax returns may lead to a larger investigation on this matter as well.

Talley’s experienced team of tax professionals provide comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

In October of 2017 famed singer-songwriter, Tom Petty passed away from an accidental drug overdose at the age of sixty-six. Leaving behind a wife and two daughters, Petty’s family members have been embroiled in several legal battles concerning his estate over the past two years. Most recently, Petty’s daughters, Adria and Annakim Violette have filed a lawsuit against his widow, Dana York Petty, for $5 million based on the theft, misuse, and misallocation of his assets.

Petty’s estate was set to be divided between the three women upon his death under the Petty Unlimited LLC. The entity was to be run by the three individuals with equal power to maintain and preserve his legacy. Recently the daughters claim to have found that Dana failed to create Petty Unlimited LLC and instead created a separate entity called Tom Petty Legacy LLC. The sisters have said that this has prevented them from obtaining their full shares of their father’s estate since Dana along with several other co-named defendants diverted more than their established 1/3 share. The two are seeking damages of $5 million, the creation of a “constructive trust” for the assets they were deprived of, and further measures to prevent future interferences from Dana and her associates.

The current allegations come months after Dana accused Petty’s daughters of trying to prevent her control of the estate as the directing trustee. Being that when decisions would come to a vote Petty’s daughters would be able to gain the 2/3 majority, Dana felt the two would be exerting primary control over the Petty businesses. At the time, Dana was also said to have deemed Adria’s actions erratic concerning Petty’s posthumous music releases. In return, the sisters alleged Dana was preventing them from making decisions concerning the estate in an equal manner. This accusation, along with the LLC issue, is what has ultimately caused the two to file their most recent lawsuit.

Though your options are virtually limitless, proper estate planning -deciding on the “who, what, when, and how” and executing this with the least amount paid in taxes, legal fees and court costs possible can be a challenging and emotional affair to wrestle with alone. For more information, contact Talley LLP today.

Why is it so important to fail at something before we can succeed? Whether you simply drop the ball, or experience an epic fail, it is almost a necessity to see that failure is part of the process and to see it as a tool as opposed to a roadblock. For over 25 years, Group 11 Advisors and our affiliate, Talley LLP has had the pleasure of working with many successful entrepreneurs and world championship athletes. Here are a few of our favorite lessons on failure we’ve picked up along the way.
Success grows from failure. Bill Gates is one of the most recognizable figures in the tech industry, and is on Forbes’ list of wealthiest people on the planet. Many people attribute his success to having had a great idea at just the right time during the technology boom. But the reality is, Gates experienced a sizeable failure before he ever dreamed up Microsoft. Originally, Gates and his business partner Paul Allen created a product called Traf-O-Data, which analyzed data from traffic tapes. The device had some serious kinks and the company never took off, but it was seminal in preparing Gates to make Microsoft’s first product several years later.
Failure can simply mean a change in direction is required. Love Ben & Jerry’s ice cream? You’re not alone. Here is a story of two gentlemen that completely reversed course in their lives yet managed to become admirably successful. Mr. Ben Cohen dropped out of college, while Mr. Jerry Greenfield failed to get into medical school, and both managed to become and remain wildly successful after attending an ice-cream making class and putting together a $12,000 investment.
Don’t give up. Despite now having dozens of financially successful and popularly titles in circulation, Stephen King’s first novel, Carrie, was nearly a failure. The novel was rejected 30 times before it was finally accepted and published, leading to King’s breakout career. King considered quitting, but his perseverance (or arguably his wife’s) kept him going.
At Group 11 Advisors, we understand the challenges facing both professional athletes and entrepreneurs when it comes to generating and protecting income earned in the ring, on the field or in the boardroom. Whether you’re looking to improve your tax position, build your brand through a business transaction, or wish to guarantee a legacy for your family, Talley & Company is uniquely equipped to provide the technical and managerial expertise to help you plan, negotiate, structure and execute upon your goals.

The U.K. said it will move ahead with plans to introduce a first-of-its-kind tax on locally generated revenue by large technology firms, representing the most tangible attempt yet by an industrialized nation to transition its tax code into an increasingly digital era.

Britain’s chancellor of the Exchequer, Philip Hammond, on Monday unveiled a 2 percent tax on the revenue that big search engines, social-media platforms and online marketplaces earn in the country.

Such taxes, which are separate from corporate income taxes many companies already pay, are generally known as digital taxes and could add billions of dollars to companies’ tax bills. They seek to impose levies on digital services sold by global companies in a given country from units based outside that country.

As large tech firms have grown into global, digital consumer-service giants, governments outside their home jurisdictions have struggled with the digital nature of their wares in coming up with an appropriate level of local tax to levy.

Big American tech firms have been criticized for reporting relatively little of their profit in local jurisdictions, opening them up to scrutiny. An international effort among rich nations to help standardize how and where to tax these digital services has been progressing slowly. The U.K. on Monday said it could no longer wait. As part of its annual budget, it said it was moving ahead with a plan to begin a digital tax for large tech firms by 2020.

The new digital U.K. tax puts pressure on other big countries, including the U.S., to speed up the global effort. The Organization for Economic Cooperation and Development, a forum of wealthy countries, has been leading the international digital-tax talks.

Only broadly experienced tax advisory professionals can provide a truly global perspective so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. Talley welcomes the opportunity to discuss with you the current opportunities available to you and your family. For more information, contact us today.

It’s not unusual for entrepreneurs to face a multitude of unique challenges every day that can stretch their ability to stay productive. When you have employees relying on you and a mountain of deadlines to meet, shutting your door and curling up into a ball in the corner is not an option. Besides money and health, time is the greatest commodity an entrepreneur can have. It makes sense, then, that the most successful business owners have figured out how to work more efficiently with the time they do have. Listed below are some productivity tips that we’ve picked up along the way.
“Eat your frog” first. Wait, what?! Mark Twain said it best: “Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day.” In other words, spend your morning working on something that you don’t want to do, which requires a large amount of concentration. By doing so, you’ll get the more tedious task done, freeing yourself up to move on to the other pressing items on your to-do list.
Want to be productive? Don’t multitask. Multitasking in the morning when you have lots to do, tons of energy, and a venti-sized cup of coffee with a double shot of espresso in front of you, is tempting. However, doing so can set your whole day back. Research conducted at Stanford University confirmed that multitasking is less productive than working on one task at a time. Researchers found that people who are regularly bombarded with several streams of electronic information cannot pay attention, recall information, or switch from one job to another, as well as those who complete one task at a time.
Take care of yourself. This is both the most important and the most overlooked tip for any entrepreneur to follow. All the business and productivity advice in the world won’t help you if you’re already stressed out, sleep deprived, and running yourself into the ground before you take that first sip of coffee or tea in the morning.
Whether you’re looking to improve your tax position, build your brand through a business transaction, or guarantee a legacy for your family, Talley is uniquely equipped to provide the technical and managerial expertise to help you plan, negotiate, structure, and execute your goals.
To learn more how Group 11 Advisors can help your business become more productive and profitable, contact us today.

For most of us—but business owners especially—time is scarce. There is always more to do than hours in the day. So what tech solutions are you leveraging to be more productive with the time you have? When time is money, tech solutions can bring in a lot more of both. See how these five options might enhance the day-to-day operations of your business.

Virtual Meeting Tools – Nothing beats a face-to-face meeting when it comes to cementing a business partnership or getting a deal done. But with the use of virtual communication tools like Skype and GoToMeeting, business leaders can spend finite resources on in-person meetings in ways that provide the greatest return. For example, web conferences can be used to present preliminary proposals and, based on initial feedback, be modified for a later in-person presentation to clients in refined form.

Bookkeeping Applications – With so many viable and cost-effective accounting applications for small businesses, no one should be manually tracking income and expenses across multiple tables, spreadsheets and systems. Software and cloud-based options allow business decision-makers to create and track professional invoices, see payments and outstanding balances at a glance, enter bills and print checks, and reconcile for tax purposes.

Online Timesheet and Payroll Services – Online time-tracking solutions make it easy for employees to submit timesheets (and managers to approve them) from anywhere and everywhere. To choose the right system for your business, think about the ways different employees would use it and where their data will need to go, from payroll to billing to reporting. If you have an existing accounting program like QuickBooks in place, a payroll solution that syncs data and issues paychecks to employees can be a great option.

Social Media Tools – It’s a full-time job creating a strategy for a business’s social media presence, selecting the channels that best suit outlined goals, and then implementing a plan of action. Programs like Buffer and HootSuite help connect accounts so businesses can plan, schedule and post to multiple outlets at one time. Leaders can set up a schedule for sharing content based on the best time for it to be released. Plus, you get the chance to see comparative analytics that can improve future planning.

Customer Service Support – With tech applications like Desk.com and Zendesk, a business can be small but still have a big customer service presence. Help desk solutions can increase the number of positive interactions customers have with you company, improve their opinions of your brand, and raise their intent to purchase from your business. Support staff can field inquiries from email, phone calls, live chat or social media using one main system, giving customers the chance to choose their preferred form of interaction.

If accounting, timesheet or payroll technologies are on your list of productivity tools to investigate, Group 11 Advisors can provide you with important points to consider when choosing the right tool for your business. Contact us and we’ll be glad to assist.

There’s a never-ending supply of new fitness devices and trackers available today, but most of the data they report is useless.  Yes, you are counting steps, flights of stairs climbed and hours of sleep, but are you honestly really doing anything with the data?  There’s even “smart” clothing on the horizon, which will read your vital signs, stress levels and even tell you to cut back on your Thanksgiving turkey. As our culture moves closer to measuring everything, it seems as if we are moving further away from tracking and measuring what we actually need to know.
For both the fitness buff and C-level executive, the argument for the usefulness of real-time data tracking is valid. It’s not an illogical leap to think any individual could potentially improve performance and adjust strategies on-the-fly by leveraging better KPIs and insightful metrics. For most though, taking that data and knowing how to utilize it is a tough barrier to overcome. We track our steps (and that’s great), but are we getting any healthier?
More data alone doesn’t make better decision makers. While having additional data equals more opportunity to make better decisions, the key to leveraging data and translating it into meaningful results is knowing what to focus on, how to interpret it, and how to utilize it in the decision-making process. Data is only valuable if it is actionable. Are you confident you are taking advantage of all the metrics available to your business?
With over 25 years’ experience consulting with industry-leading companies, Talley & Company and our affiliate Group 11 Advisors are committed to provide clear, knowledgeable and applicable financial data and analysis solutions, enabling management to intelligently track performance, progress and profits. To determine whether your business is taking advantage of all metrics available to make the most informed decisions for future success, schedule a time to talk with us today.

With almost 400,000 employees worldwide and holding more patents than any other U.S. based tech company, IBM is one of the most recognized brands in business innovation. In 1964, IBM solidified its place in the tech industry, producing approximately 70% of all computers, but has struggled in recent years due to missing a key technology shift in an increasingly mobile and online business environment. Though IBM has made strides to keep up with the times by shedding low-margin hardware products and re-inventing itself as a business technology solutions provider, sometimes even those in the business of innovation can fall victim to the status quo.

IBM Bans Uber. Earlier this year, IBM issued a firm-wide ban on reimbursement for use of Uber and other ride-sharing services over safety and security concerns, noting that such services might carry inadequate insurance, fail to conduct background checks on drivers and were even illegal in some cities.

IBM’s ban on ride-sharing services did not sit well with Max Black, a global business consultant with the company and early adopter of Uber rides for business travel. He posted a petition on IBM’s internal social network, arguing that Uber saved IBM money, improved accountability and was not a safety risk.  His final point struck a major chord with IBM’s top brass: “We are being hypocritical…IBM is in the business of preaching mobility transformation to its clients, but we are effectively outlawing for our employees one of the best examples of mobile innovations.”

Within hours, hundreds of comments from fellow co-workers flooded in, expressing their unanimous support for IBM to lift the ban on Uber. The result: 16 hours later, head of HR and senior VP Diane Gherson reversed the ban on ride-sharing services.

The real lesson? Don’t let the status quo impede innovative thinking.  Accept that complacency is a business killer and be open-minded when looking at new processes, procedures and business tools that challenge the “we’ve always done it this way” mentality.

Leading-edge businesses are partnering with Group 11 Advisors and its affiliates to take advantage of our wide range of services, such as bookkeeping, financial reporting, technology advising, tax planning, and estate planning. Group 11 Advisors can help you design and execute fully customizable solutions to fit the unique needs of your business.


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