Uncertain Tax Position Disclosures: Is Your Organization in Compliance?
As a not-for-profit, tax-exempt organization, you might think the subject of “uncertain tax positions” (UTPs) doesn’t apply to you. Think again. Some of the basics of your operations, including your tax-exempt status, could create uncertain tax positions that trigger critical reporting obligations. FIN 48 in a Nutshell For several years now, the Financial Accounting Standards…
Advantages of Sponsoring Another Charity
Let’s say an established not-for-profit organization provides medical services to low-income families. The organization is approached by a group that wants to serve the same population with periodic reduced-cost dental clinics, and it has already lined up several large donations. The fledgling group, however, doesn’t have 501(c)(3) status and wants the established organization to act…
Be Careful When Selling Out: Some Assets Are Hot
Sooner or later, one of your law firm partners will probably sell his or her partnership interest to an incoming partner. At that point, there will be important tax consequences for the exiting partner. This article explains the applicable federal income tax rules in a nutshell. The same rules apply if your firm operates as…
Financial Issues to Consider During and After a Divorce
Divorce is one of the most traumatic events that can occur in a person’s life. The emotional aspects of the break-up are difficult to handle, and the stress can be compounded by the financial implications. The finances that are typically finalized by a court ruling generally fall into three categories — alimony, child support and…
Avoiding the 10% Penalty On Early IRA Withdrawals
For one reason or another, you may need to take some money out of an IRA before reaching retirement. You can withdraw money from an IRA at any time and for any reason, but it’s important to keep in mind that most IRA withdrawals are at least partially taxable. In other words, you’ll owe regular…
How the New Limit on SALT Deductions Affects Homeowners
The ability to deduct state and local taxes (SALT) has historically been a valuable tax break for taxpayers who itemize deductions on their federal income tax returns. Unfortunately, the Tax Cuts and Jobs Act (TCJA) limits SALT deductions for 2018 through 2025. Here’s important information that homeowners should know about the new limitation. Thinking about…
Employers’ Responsibilities for Documents and Records
Question: Our company sponsors an insured group health plan. Are we, or our insurer, responsible for providing a summary of benefits and coverage? Answer: If your plan is fully insured, the obligation to timely provide a summary of benefits and coverage (SBC) lies both with the insurer and the plan administrator (usually the plan sponsor,…
Tax Law Changes Meal and Entertainment Deductions
Once upon a time, taxpayers could generally deduct 50% of business-related meal and entertainment expenses. However, several exceptions allowed larger deductions in certain circumstances. Then came the Tax Cuts and Jobs Act (TCJA), which dramatically shifts the playing field for expenses paid or incurred after December 31, 2017. The new law also creates some uncertainties,…
New Law Gives Eligible Pass-Through Businesses a Special Tax Break
Federal income tax rates for C corporations have been reduced to a flat 21%, starting in 2018 under the Tax Cuts and Jobs Act (TCJA). But what about pass-through businesses? Calculating the QBI Deduction: It’s All Relative To illustrate how the qualified business income (QBI) deduction works, let’s suppose you and your spouse file a…
Protect Your Most Prized Possessions
One of the most costly — yet easily prevented — disasters for any business is the failure to secure ownership of intellectual property (IP). Unless you take the proper legal steps, you could find that your company doesn’t own its most prized possessions. Here are the details you need to know. Under the law, the…