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| Estimating Lost Profits for Businesses Owned by the Self-Employed (2267Q) |
Course CPE: 1 hour
Field(s) of Study: Economics–1 hr
Program Level: Overview
Prerequisites: None required. These overview programs may be appropriate for professionals at all organizational levels.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 26BV0309ELP
Shipping Weight: 0lbs. 0oz. |
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$99.00 |
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Recording Date: March 9, 2026
Presenter: Allyn Needham
Program Description:
Financial experts will often be asked to estimate the lost earnings or lost earning capacity for an injured self-employed person. This type of analysis often begs the question, “For the self-employed, what are lost earnings and what are lost profits?” In an injury matter, it is the individual (the self-employed person) who is seeking recovery of lost wages. In a lost profits matter, the entity seeking recovery of the lost profits is the business itself. In this litigation, the self-employed person will, more than likely, be the representative of the business, but it is the business that has been injured and the business that will receive payment for the loss of profits. This course discusses how to separate the lost profits for the business from the self-employed person’s earnings.
Takeaways
This course provides an overview for assessing the calculation of lost profits for self-employed businesses. It will review court decisions defining the differences between self-employed persons' lost earnings and the businesses' lost profits. Examples will review analyses of Schedule C businesses and subchapter S corporations. These examples will show how the definitions provided by various courts may be applied when calculating lost profits for these types of businesses.
After completing this course, you will be able to:
- Differentiate the difference between lost earnings and lost profits for a self-employed person
- Determine business financial records to separate self-employed earnings from business profits
- Determine the facts of the specific assignment to determine if lost profits that were separate from the owner's earnings existed
- Determine a self-employed person's business lost profits
- Select the appropriate method for discounting future lost profits to present value
- Identify in a written report or testimony the methodology and approaches used for assessing the lost profits
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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