FAQs about Deducting Interest on Home Loans under the New Tax Law
The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them. Old Rules for Mortgage Interest DeductionsPrior to the Tax Cuts and Jobs Act (TCJA), you could deduct interest…
Best Choice: A Board of Directors or an Advisory Board?
To survive and thrive in a competitive marketplace, companies need to secure help and guidance from a wide range of sources.To do so, many companies create advisory boards, or more formally, a board of directors to help guide them and hopefully facilitate growth. If your company plans to go public, it will be required to put…
What Lenders Require in Today’s Economy
In a tough economy, the availability of business credit remains tight. Financial institutions are cautious and highly skeptical of new lending requests. In addition to increased scrutiny regarding new relationships, bankers also increasingly turn their focus to existing customers. With little or no notice, lenders may close business credit lines or reduce the amount of…
When in Doubt, Flow It Down
Many of the Federal Acquisition Regulations included in a prime contract require that the substance of the clause also be included in subcontracts. These flow-down clauses are generally intended to help ensure that the subcontracts adhere to federal procedures. Contract clauses define compliance requirements. Contractors should flow-down all clauses that place requirements on subcontractors that…
Self-Audit Program May Help Employers Correct Wage Errors
Eligible employers may now be able to conduct a self-audit of certain wage practices, thanks to a pilot program from the Department of Labor’s Wage and Hour Division (WHD). This program — called Payroll Audit Independent Determination (PAID) — was recently launched as a tool for employers to uncover payroll errors on their own. Employers…
The Value of Donated Property Is in the Eye of the Marketplace
Not-for-profit organizations often struggle with valuing non-cash and in-kind donations, including the value of houses and other real estate. Whether for recordkeeping purposes or when helping donors understand proper valuation for their charitable tax deductions, the task isn’t easy. Although the amount that a donor can deduct generally is based on the donation’s fair market value…
An Inside Look At Diversification
Ancient Chinese merchants are said to have developed a unique way to reduce their risk. They would divide their shipments among several different vessels. That way, if one ship were to sink or be attacked by pirates, the rest stood a good chance of getting through and the shipment could be saved. Tip: Correlation To adequately…
Debt Isn’t a Bad Word: Why Your Organization Might Want to Borrow
Debt is an integral part of the strategic plans of many organizations, yet it has traditionally carried a stigma in the not-for-profit industry. That view is changing, as more organizations borrow money for major capital purchases, new program funding — even to manage current cash flow. But if you’re hoping to borrow funds, know that…
Dividing Assets, and Tax Bills, in Divorce
When a divorce happens, there are often major financial consequences and some important tax issues too. Here are the tax rules that generally apply when a couple’s assets are split up in a divorce property settlement. State Law Is Important How assets are split up in a divorce depends largely on where the divorcing couple…
Timing and Taxes: Two Critical Issues when Buying or Selling a Home
You might be in a rush to buy or sell a home before summer starts or interest rates increase even more. But, first, it’s important to review the tax rules related to home sales and deductions for mortgage interest, property taxes and work-related moving expenses. Beware: Some rules have changed under the Tax Cuts and Jobs…