2018 - Page 7 of 17

Nov
20
2018

How successfully has your nonprofit shifted from overhead to impact?

Overhead ratios can help potential donors weed out spendthrift not-for-profits. Yet a narrow focus on this one metric tends to unfairly penalize organizations making reasonable current expenditures and strategic investments. To communicate with donors that “impact” (the indirect effects of measurable outcomes) is the best measure of nonprofit effectiveness, add supplemental financial statements and break out administrative items in your annual report. Such enhancements can help you explain how expenditures result in enhanced programs that positively affect lives.

Nov
19
2018

HBL CPAs Holiday Hours

Nov
19
2018

If you’re reading this

Nov
18
2018

Extension of Time to File Information Returns

Getting extra time to file information returns will be a bit harder for some businesses. Previously, employers and others that couldn’t timely file forms W-2, 1099, 1042-S and 8027 could get automatic 30-day extensions. The IRS has issued a revised November 2018 Form 8809 (Application for Extension of Time to File Information Returns), adding boxes to check when the late forms include Forms W-2 or 1099-MISC with nonemployee compensation. The boxes explain why the extension has been requested.

Nov
17
2018

Election Worker Compensation

The IRS clarifies the tax treatment of election worker compensation. Thousands of state and local government entities hire workers to conduct primary and general elections. The IRS is stating that compensation paid to election workers is includable as wage income for income tax purposes. And it may be treated as wages for Social Security and Medicare tax purposes. Election workers also may be reimbursed for their mileage or other expenses. To be excludable from wages,

Nov
16
2018

Donate appreciated stock for twice the tax benefits

Did you know that you may be able to enjoy two tax benefits if you donate long-term appreciated stock instead of cash? First, if you itemize, you can claim a charitable deduction equal to the stock’s fair market value. Second, you can avoid the capital gains tax you’d pay if you sold the stock. But the charitable deduction will provide a tax benefit only if your total itemized deductions exceed your standard deduction,

Nov
15
2018

Pastoral Donations

Voluntary pastoral donations to a minister were taxable income, not nontaxable gifts. A congregation’s minister collected voluntary donations in specially marked envelopes labeled “pastoral gifts.” The minister argued that these donations were nontaxable gifts. The U.S. Tax Court ruled that the donations were taxable income for several reasons including they far exceeded the sum of his deemed salary and parsonage allowance, and they were meant to keep him at his post.

Nov
14
2018

Selling your business? Defer — and possibly reduce — tax with an installment sale

You’re ready to sell your business and want to get the return from it you’ve earned from the time and money you’ve invested. That means getting a good price and minimizing the tax hit on the proceeds. One option that can help defer tax is an installment sale. Spreading gain over several years is especially beneficial if it allows you to stay under the thresholds for triggering the 3.8% net investment income tax or the 20% long-term capital gains rate.

Nov
13
2018

New FICO system

New FICO credit score uses checking and savings account history http://bit.ly/2JinM6R

Nov
13
2018

Backup Withholding Update

Attention small businesses: The IRS has updated its Publication 1281 on backup withholding to reflect a key change made by the Tax Cuts and Jobs Act. Because of the change, effective 1/1/18, the backup withholding tax rate dropped from 28% to 24%. Backup withholding applies when taxpayers fail to supply their correct taxpayer identification number to a payer. It also applies, following notification by the IRS, in other situations such as when taxpayers underreport interest or dividend income on federal tax returns.