General News and Information Archives - Page 17 of 40

Dec
24
2018

Meals

The IRS sheds light on meals provided for the convenience of an employer. An individual’s gross income generally includes compensation for services, including fringe benefits. An exception is the value of meals furnished by an employer, which are excludable if they’re furnished on the business premises for the employer’s convenience. The IRS Associate Chief Counsel issued Legal Advice 2018-004 stating that a previous test applied by the U.S. Supreme Court will continue to be relevant to determine whether there’s a business reason for furnishing meals to employees.

Dec
23
2018

3 ways to improve development and accounting collaboration

Communication breakdowns between your not-for-profit’s development and accounting departments can lead to confusion, embarrassment and financial problems. To ensure these two functions work well together, staffers should understand that it’s normal for their numbers to differ. Development typically uses the cash basis of accounting, while accounting departments generally follow Generally Accepted Accounting Principles. Policies for communicating the receipt of grants and pledges are critical, as are regular meetings between the two teams. Contact us for details.

Dec
21
2018

Tax Bill Containing Technical Corrections

U.S. House Republicans have released a tax bill containing technical corrections, “extenders” and disaster relief. Released by the House Ways and Means chairman, the bill contains expiring tax provisions, technical fixes for the Tax Cuts and Jobs Act, disaster relief, retirement plans and improvements to the IRS. Finance Committee Democrats reportedly hadn’t weighed in on the bill before its release. The House could take up the bill by the end of this week,

Dec
21
2018

Happy Holidays!

HBL showing their holiday spirit dressing for the season. We would like to wish every a Happy and Safe Holiday.
Please note that we will be closed:
Monday, December 24, 2018 and
Tuesday, December 25, 2018
We will resume our regular office hours on Wednesday, December 26, 2018.

Dec
20
2018

Does prepaying property taxes make sense anymore?

Prepaying property taxes has been a popular year-end tax-planning strategy. But does it still make sense? For many, particularly those in high-tax states, it doesn’t. The TCJA made two changes that affect this strategy: 1) nearly doubling the standard deduction, so fewer taxpayers will itemize, and 2) putting a $10,000 cap on state and local tax deductions. If you no longer itemize or you’ve already used up your $10,000 limit (on income or sales taxes or on previous property tax installments),

Dec
19
2018

How fiscal sponsorships work for established — and fledgling — charities

In a fiscal sponsorship, an established charity provides a kind of legal and financial umbrella to a charitable project that lacks 501(c)(3) status. These arrangements can benefit both larger organizations and the projects they sponsor. Small projects gain much-needed infrastructure, fiscal management and the ability to accept tax-deductible charitable donations. Sponsors gain exposure to new potential donors and enhancements to their own programs. But a poorly planned fiscal sponsorship could damage a sponsor’s finances and reputation.

Dec
18
2018

Business Interest Deduction Limit

The IRS issues proposed regulations on the business interest deduction limit. The Tax Cuts and Jobs Act generally limits the deduction to the sum of the taxpayer’s current-year business interest income, 30% percent of the taxpayer’s adjusted taxable income and certain floor plan financing interest expense. There are exceptions to the limit for small businesses whose gross receipts are $25 million or less and for certain trades or businesses. The proposed regs,

Dec
17
2018

Catch-up retirement plan contributions can be particularly advantageous post-TCJA

Will you be age 50 or older on December 31? Are you still working? Are you already contributing to your 401(k) up to the regular annual limit? Then you may want to make “catch-up” contributions by the end of the year. Increasing your retirement plan contributions can be particularly advantageous if your itemized deductions for 2018 will be smaller than in the past because of changes under the TCJA. The additional contributions can reduce your taxable income and help make up for the loss of some of your itemized deductions.

Dec
16
2018

5 delegation best practices for nonprofit leaders

Done well, delegation allows not-for-profit leaders to focus on their most important tasks and helps to build bench strength. This starts by committing to your organization’s most valuable projects and those that can best benefit from your talents. Delegate routine tasks or those that require skills you don’t have. But be careful about choosing the right person for the job, and when handing it off, be clear about goals, expectations, deadlines and details.

Dec
15
2018

When holiday gifts and parties are deductible or taxable

It’s a great time of year for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees aren’t included in their taxable income yet are still deductible by you. Holiday parties are fully deductible provided they’re primarily for the benefit of non-highly-compensated employees and their families.