September 2019 - HBL CPAs

Sep
27
2019

A policy can help nonprofits look “gift horses” in the mouth

Although it’s hard to say “no” to a generous donor, your not-for-profit needs to be careful about accepting “gift horses.” There are many reasons to decline gifts, from space limitations to unsuitability to your mission. An art collection, for example, may require insurance and offsite storage your nonprofit can’t afford. A gift acceptance policy makes accepting or refusing gifts simple. List the kinds of gifts you can’t manage. For those you can, describe how they’ll be valued,

Sep
26
2019

Highlights of the Final Rule on Overtime Eligibility for White Collar Employees

Highlights of the Final Rule on Overtime Eligibility for White Collar Employees – Wage and Hour Division (WHD) – U.S. Department of Labor http://bit.ly/2mX1Oit

Sep
26
2019

Taxpayers should beware of property lien scam

IRS Tax Tip 2019-134, September 26, 2019

With scam artists hard at work all year, taxpayers should watch for new versions of tax-related scams. One such scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency.

Here are some details about the property lien scam that will help taxpayers recognize it:

This scheme involves a letter threatening an IRS lien or levy.

Sep
23
2019

The key to retirement security is picking the right plan for your business

If you’re a small business owner, you may want to set up a retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages, including 401(k)s, Simplified Employee Pension (SEP) plans and SIMPLE IRAs. For 2019, the maximum amount you can contribute to a 401(k) and exclude from income is $19,000, plus a $6,000 “catch-up” amount for those age 50 or older. For a SEP plan, the 2019 maximum amount is 25% of compensation or $56,000.

Sep
20
2019

Nonprofits can borrow, but finding a lender may be tough

Borrowing isn’t just for businesses. Many not-for-profits borrow money for major capital purchases, new program funding and even to manage current cash flow. But if you’re hoping to borrow, know that it can be hard to find a lender. The odds of qualifying are better if your organization already has a relationship with the lender, such as the bank where you hold a checking account. Your reason for applying also plays a part in the decision.

Sep
18
2019

Depreciation Deduction

The IRS has issued final regs on the 100% additional first-year depreciation deduction. It allows businesses to write off most depreciable business assets in the year they’re placed in service. Changes from the regs proposed in August include qualified improvement property, leasehold improvement property, restaurant property, and retail improvement property. A taxpayer may choose to apply the final regs, in their entirety, to qualified property acquired and placed in service after Sept. 27, 2017, in tax years ending on or after Sept.

Sep
16
2019

Genetic Testing

A portion of ancestry genetic testing qualifies as medical care, the IRS has stated, and thus some of the costs may be deductible. In a Private Letter Ruling, the IRS allowed a taxpayer to allocate the costs of health services and the DNA collection kit among medical and nonmedical items and services. The price of the kit must be allocated between the ancestry services and the health services using a percentage. The taxpayer may use a reasonable method to value the cost of the health services between medical services (such as the testing at the laboratory) and nonmedical services (such as reports that provide general information as a test result).

Sep
10
2019

Expenses that teachers can and can’t deduct on their tax returns

As teachers head back to school, they often pay expenses for which they don’t receive reimbursement. Fortunately, they may be able to deduct some of them on their tax returns. You don’t have to itemize your deductions to claim this “above-the-line” tax break. For 2019, educators can deduct up to $250 of eligible expenses that weren’t reimbursed. Eligible expenses include books, supplies, computer equipment, software, other classroom materials, and professional development courses. To be eligible,

Sep
10
2019

Treasury and IRS issue proposed regulations and provide relief for certain tax-exempt organizations

IR-2019-150, September 6, 2019

WASHINGTON — The Internal Revenue Service today issued proposed regulations clarifying the reporting requirements generally applicable to tax-exempt organizations.

The proposed regulations reflect statutory amendments and certain grants of reporting relief announced by the Treasury Department and the IRS in prior guidance to help many tax-exempt organizations generally find the reporting requirements in one place.

Among other provisions, the proposed regulations incorporate the existing exception from having to file an annual return for certain organizations that normally have gross receipts of $50,000 or less,

Sep
04
2019