Do Employers Have to Compensate Hourly Technicians for Travel Time?
The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has issued a new Opinion Letter on whether employers must compensate employees for travel time. These letters are issued to help the public better understand compliance with certain federal laws. They’re based exclusively on the facts provided by an employer that asks the agency…
Capital Gains Rates Before and After the New Tax Law
Are you confused about the federal income tax rates on capital gains and dividends under the Tax Cuts and Jobs Act (TCJA)? If so, you’re not alone. Here’s what you should know if you plan to sell long-term investments or expect to receive dividend payments from your investments. Old Rules Prior to the TCJA, individual…
Tax Allocations When a Partner Exits
Let’s say a partner in your law firm exits partway through the firm’s tax year. How are partnership tax items for that year allocated between the departing partner and the remaining partners? There is more than one way to handle this situation. In general, three methods are allowed for making such allocations. Here is a…
Crowdfunding — Capital for the 21st Century
One of the earliest examples of crowdfunding occurred in 1884 when funds ran short for building the Statue of Liberty’s pedestal. The publisher Joseph Pulitzer used his newspaper to appeal to Americans to donate the money needed to complete the pedestal’s construction. Over $100,000 in six months was raised from more than 125,000 people.1 But…
Got Bitcoin? Virtual Currency Complicates Tax Reporting
Bitcoin has been around for nearly a decade. But the tax rules related to “virtual currency” are still evolving. In fact, some Bitcoin investors may be in for a surprise when they file their 2017 returns. Tax matters will become even more complicated for 2018 returns because relevant provisions of the new tax law (the Tax…
Yes, You Do Need Investment Policies
So you think investment policies are only for not-for-profits with millions to invest? Not true. If your organization holds funds in reserve — for example, to cover emergencies or meet long-term goals — it’s prudent to have investment policies. Such policies will help ensure that you manage reserve funds responsibly according to their purpose and…
Setting the Salaries and Benefits of Your Executives
Rules known as “intermediate sanctions” allow the IRS to assess penalties against not-for-profit executives who receive excess compensation — and the board members who have approved it. Do you and your board know what’s considered excess compensation and what’s viewed as a conflict of interest during the compensation-setting process? Avoiding Excess Benefits Internal Revenue Code…
Deducting Pass-Through Business Losses
Many business ventures generate tax losses, especially in the first few years of operation or under adverse conditions. When can losses be deducted — and how much can you deduct in any given year? This article explains new limitations on the ability of individual taxpayers to deduct losses from pass-through business entities, including sole proprietorships, limited…
Increase the Odds of Getting a Loan
There are a couple of old sayings that relate to getting a loan. The first one is that bankers only want to lend money when you don’t need it. As frustrating as that is, it’s understandable, since bankers naturally want to minimize their risks. DO DON’T Be honest regardless of whether the information is positive or…
Succession Planning Requires Smart Strategies
Succession planning is important in any business, but it’s sometimes overlooked in family-owned operations. This is a big mistake. There are numerous former family-run companies that no longer exist due to poor or no succession plan. A family meeting in a neutral setting away from interruptions can help focus discussion, perhaps with the assistance of a professional…