• 6 tips to improve job-costing systems

    Companies that work on customer-specific or long-term projects — such as homebuilders, contractors, custom manufacturers and professional practices — generally track job costs to gauge the profitability of each project. In turn, this helps them bid future projects. Unfortunately, the job-costing process tends to be cumbersome, causing some expenses to inadvertently fall through the cracks instead of being allocated properly. Here are six tips to [...]

    Published On: February 7, 2024Categories: Business, Featured
  • Inventory management systems: What’s right for your business?

      If your business has significant inventory on its balance sheet, it can be costly. The carrying costs of inventory include warehousing, salaries, insurance, taxes, and transportation, as well as depreciation and shrinkage. Plus, tying up working capital in inventory detracts from other strategic investment opportunities. Reducing these costs can help improve a company’s profits and boost operating cash flow. Here are two alternative inventory [...]

    Published On: February 6, 2024Categories: Business, Featured
  • Got independent contractors? Get to know Form W-9

      If your not-for-profit is perpetually shorthanded, you may have decided to engage independent contractors or freelancers to pick up some of the slack. Just make sure you’re collecting the right information from these individuals and filing it with the IRS. Clean paperwork now can save you a lot of headaches — including tax penalties — later. W-9 rules When engaging an independent contractor, obtain that person’s [...]

    Published On: January 22, 2024Categories: Featured, Not for Profit
  • Does your business have employees who get tips? You may qualify for a tax credit

      If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals The FICA credit applies to tips that your staff members receive from customers when they buy food and beverages. It doesn’t matter [...]

    Published On: January 21, 2024Categories: Featured, Small Business Tax
  • Going global: How your nonprofit can navigate potential obstacles

      If your not-for-profit’s 2024 plans include international expansion, take care. Rules that apply to U.S.-based nonprofit activities — such as soliciting donations, recruiting members, hiring employees and selling products — often are different overseas. You need to make sure the desire for your services or products is robust enough in your target countries to justify the costs of operating in them. Ask questions and research [...]

    Published On: January 21, 2024Categories: Featured, Not for Profit
  • Defer a current tax bill with a like-kind exchange

      If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Although the real estate market has been tough recently in some locations, there are still profitable opportunities (with high resulting tax bills) when [...]

    Published On: January 20, 2024Categories: Featured, Small Business Tax
  • When are sponsorship and advertising payments subject to tax?

      Sponsorship and advertising dollars can provide a real boost to your not-for-profit organization’s income. However, if sponsors or advertisers receive a “substantial benefit” or if providing benefits isn’t a related business activity, you may owe unrelated business income tax (UBIT) on the payments. Here’s a quick look at what is and isn’t taxable. UBIT typically doesn’t apply to sponsorships Sponsorship dollars generally aren’t taxed. [...]

    Published On: January 20, 2024Categories: Featured, Not for Profit
  • The standard business mileage rate will be going up slightly in 2024

    The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents (up from 65.5 cents for 2023). The increased tax deduction partly reflects the price of [...]

    Published On: January 19, 2024Categories: Featured, Small Business Tax
  • Using the personal touch for last-minute fundraising

    As 2023 hurtles toward Dec. 31, your not-for-profit probably is fully engrossed in last-minute fundraising. After all, taxpayers who itemize will be able to deduct qualified charitable contributions on their 2023 tax returns. As you make last-minute pitches, don’t forget to deploy the personal touch. Many studies have shown that people are more willing to donate if a friend, family member or coworker is doing the asking. [...]

    Published On: January 19, 2024Categories: Featured, Not for Profit
  • A company car is a valuable perk but don’t forget about taxes

    One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company car.) Even better, current federal tax rules make the benefit [...]

    Published On: January 18, 2024Categories: Featured, Small Business Tax
  • Consider these 2 issues before searching for new staffers

    Despite many predictions to the contrary, U.S. employers have continued to add workers to their payrolls and the unemployment rate has remained low — at 3.7% as of November 2023, according to the Bureau of Labor Statistics. Is your not-for-profit among the employers that need fresh staffers? The new year is a good time to start looking, but make sure you consider a couple of issues before [...]

    Published On: January 18, 2024Categories: Featured, Not for Profit
  • A cost segregation study may cut taxes and boost cash flow

    Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period (27.5 years for residential rental properties). In most cases, a [...]

    Published On: January 17, 2024Categories: Featured, Small Business Tax
  • Why your nonprofit shouldn’t operate like a for-profit business

    Charlotte thought she knew everything about running a not-for-profit community hospital. So the CEO was shocked when the IRS contacted her hospital about potentially losing its tax-exempt status. The IRS mentioned several issues, including the hospital’s increasingly wide operating margins and its extensive use of advertising. As the dispute proceeded to litigation, Charlotte learned that the hospital had tripped over the commerciality doctrine. This is a [...]

    Published On: January 17, 2024Categories: Featured, Not for Profit
  • The kiddie tax could affect your children until they’re young adults

    The so-called “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. For purposes of this federal income tax provision, a “child” can be up to 23 years old. So, the kiddie tax can potentially affect young adults as [...]

    Published On: January 16, 2024Categories: Featured, Individual Tax