News and Posts

From the baseball field to the boardroom, statistical analysis has changed various industries nationwide. With proper preparation and guidance, business owners can have at their fingertips a wealth of stats-based insight into how their companies are performing — far beyond the bottom line on an income statement.The metrics in question are commonly referred to as key performance indicators (KPIs). These formula-based measurements reveal the trends [...]

At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s common for teachers to pay for some classroom supplies out of pocket, and the tax code provides a special break that makes it a little [...]

When businesses provide meals to their employees, generally their deduction is limited to 50%. But there are exceptions. One is if the meal qualifies as a de minimis fringe benefit under the Internal Revenue Code.A recent U.S. Tax Court ruling could ultimately mean that more employer-provided meals will be 100% deductible under this exception. The court found that the Boston Bruins hockey team’s pregame meals [...]

Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover that you would have been better off if you hadn’t converted it? Fortunately, it’s possible to undo a Roth IRA conversion, [...]

Not-for-profits that ignore the IRS’s private benefit and private inurement provisions do so at their own peril. These rules prohibit an individual inside or outside a nonprofit from reaping an excess benefit from the organization’s transactions. Violation of such rules can have devastating consequences. Defining termsA private benefit is any payment or transfer of assets made (directly or indirectly) by your nonprofit that’s beyond reasonable [...]

In recent years, the IRS has increased its scrutiny of not-for-profits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable. 1. Debt-financed propertyWhen your nonprofit incurs debt to acquire an income-producing asset, the portion of the income or gain that’s debt-financed is [...]

If your organization sponsors a retirement plan, it’s important to recognize and understand all of the expenses associated with the plan. As you’re probably aware, plan sponsors may use certain retirement funds to pay allowable administrative and other plan-related expenses.But your plan document must authorize any payments for expenses. Also, the payment must be in the plan participants’ and beneficiaries’ interest, and the amount paid [...]

Naturally, most employee training occurs in-house. But area colleges and trade schools can also help fulfill your employee education and professional development needs. And if you reimburse employees for their expenses at these institutions, you and your employees may be able to save valuable tax dollars.Offer a fringe benefitPayment of an employee’s expenses results in taxable wages subject to income and payroll taxes unless the [...]

Tax relief for disaster victims. The IRS has announced tax relief for victims of severe storms and flooding that began on June 22, 2017, in Michigan counties that have recently been designated as federal disaster areas. Victims have more time to make tax payments, file returns and complete certain other time-sensitive acts. Details of the available relief, including extended filing and deposit dates and an [...]

Pop quiz! What are the two legal documents that govern your company’s qualified retirement plan? It may not be a question that keeps you up at night, but it’s one that can trip up employers that sponsor such a plan. The answer, of course, is: 1) an underlying plan document (UPD) and a summary plan description (SPD). But here’s an even scarier question — what [...]

The Employee Retirement Income Security Act of 1974 (ERISA) generally requires that people who handle funds or property of a qualified retirement plan, such as a 401(k), be bonded. So if your organization sponsors a qualified plan, it’s important to stay up to speed on your bonding requirements. These bonds are sometimes referred to as “ERISA bonds,” “fidelity bonds” or “surety bonds.” The bond reimburses [...]

In the quest to reduce your tax bill, year end planning can only go so far. Tax-saving strategies take time to implement, so review your options now. Here are three strategies that can be more effective if you begin executing them midyear:1. Consider your bracket The top income tax rate is 39.6% for taxpayers with taxable income over $418,400 (singles), $444,550 (heads of households) and [...]

Summer is a good time to start your 2017 tax planning and organize your tax records You may be tempted to forget all about taxes during summertime, when “the livin’ is easy,” as the Gershwin song goes. But if you start your tax planning now, you may avoid an unpleasant tax surprise when you file next year. Summer is also a good time to set [...]

Claiming a federal tax deduction for moving costs Summer is a popular time to move, whether it’s so the kids don’t have to change schools mid-school-year, to avoid having to move in bad weather or simply because it can be an easier time to sell a home. Unfortunately, moving can be expensive. The good news is that you might be eligible for a federal tax [...]