Loyalty, Fitness and Employee Welfare
The costs of maintaining employee health, morale and well-being can generally be claimed, while recreation costs and gifts cannot. The difficulty sometimes is in distinguishing between them. FAR 31.205-13 defines generally allowable employee expenses and credits as expenses for”activities designed to improve working conditions, employer-employee relations, employee morale, and employee performance (less income generated by these…
Take Advantage of Government Commercial Purchases
What makes products or services commercial for the purposes of government acquisitions? Generally speaking, they must be similar, but not necessarily identical, to those sold in the commercial market and used by the general public or non-government agencies. Federal Acquisition Regulation (FAR) Part 12 establishes purchasing policies for government agencies that closely resemble those of the…
Dialing in on Smartphones for Kids
Do your kids (or grandkids) have a smartphone? On average, American children receive their first smartphone at the age of 10, according to a recent study by market research firm Influence Central. Smartphone Use Is Up Market research firm Influence Central recently published its 2016 Digital Trends Study. These five findings show how kids are increasingly…
What To Do With Unwanted Donations
Everyone agrees that donations are the lifeblood of not-for-profit organizations. At the top of most wish lists is cash, and depending on your situation, you may accept other assets and in-kind contributions. But what should you do when offered donations that are not usable or appropriate? For example, how should a charity react when it is…
What if an Employee Has Military Duty?
What if an Employee Has Military Duty? If you have an employee who has requested a leave of absence from work to attend annual training, inactive duty training, or any other event ordered by the unit commander, you are required to grant the leave. That’s federal law under the Uniformed Services Employment and Reemployment Rights Act…
Does Your Board ‘Get’ Your Financials?
Accurate, relevant and timely financial information is key to making good decisions for not-for-profit executives and board members. But do all of your board members really understand the numbers they receive and what they mean to your organization? For example, let’s say you’re trying to determine how and when to initiate a new program? Do the…
Help Your Kids Build a Fortune With a Roth IRA
If you have teenage children or grandchildren with part-time jobs, there’s a tax-favored way to help them save money for college, a first home — and even retirement. By socking away some of their earnings in a Roth IRA, your youngsters can begin a savings plan that can grow into a small fortune. Roth IRAs, which…
Make Your Hobby a Business … Carefully
Many people dream of making money pursuing a favorite hobby. By starting a sideline business, you could be eligible for a treasure chest of tax deductions. Warning: The IRS and the U.S. Tax Court often denies losses if the taxpayers have no written business plans, don’t do any advertising, and keep poor records. If you follow certain…
Collect Tax-Free Profit From Selling Your Home
Whether the residential real estate market is up or down, there are always homeowners who want to — or have to — sell their homes. If you’re a prospective seller making your property look like a model home in the hopes of raking in a nice profit, now is a good time to review how taxes…
Bad Debt Losses: Can You Deduct Loans Gone Bad?
The IRS is always skeptical when individual taxpayers claim deductions for bad debt losses. Why? Losses from purported loan transactions often fail to meet the tax-law requirements for bad debt loss deductions. For example, a taxpayer might try to write off a capital contribution to a business entity that underperformed. Or a taxpayer might have advanced…