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Category: Taxation-Corporate

June 27, 2022

6 Common Tax Deductions for Not-for-Profits

Revenue generated by 501(c)(3) organizations is generally exempt from federal income tax. But in some cases, your not-for-profit may incur unrelated business income tax (UBIT) on revenue. The good news is your annual tax return may offer some relief in the form of deductions. The list isn’t as long as the “ordinary and necessary business expenses” for-profit entities can deduct, but here are six common nonprofit deductions to know about: 1. Wages. Just as for-profit businesses, your nonprofit can deduct… Read more ›

June 21, 2022

Standard Business Mileage Rate Will Increase For the Second Half of 2022

The IRS recently announced that it’ll increase the standard mileage rate for qualified business driving for the second half of 2022. The adjustment reflects the soaring cost of gasoline this year. In fact, as of June 13, the nationwide average price of regular unleaded gas was $5.01 a gallon, according to the AAA Gas Prices website. This is compared with $3.08 a gallon a year ago. Beginning July 1, 2022, the standard mileage rate for business travel will be 62.5… Read more ›

June 10, 2022

Important Considerations When Buying Another Construction Firm

Buying another construction firm can be an attractive way to grow your company’s revenue base. A merger or an acquisition can allow you to: Add a new subcontracting specialty, Acquire an experienced labor force to reach new markets, and Deepen your penetration into the market your firm already serves. But there’s more to mergers and acquisitions than agreeing on a purchase price and signing the paperwork. For example, which employees should be made privy to the transaction? And how do… Read more ›

May 31, 2022

Medical Costs: Can I Really Get a Tax Break for That?

It’s difficult for many people to write off medical expenses because of the limits imposed under the tax laws. But you may qualify by including every expense allowed. Some of the qualified procedures may surprise you. For example, most insurance plans won’t cover laser eye surgery, such as radial keratotomy or “Lasik,” because they consider it a cosmetic procedure. But it generally qualifies for a medical deduction and as an expense in a flexible spending account. (The IRS used to… Read more ›

May 31, 2022

Tax Quiz About Business Vehicle Deductions

Q. When buying a vehicle to use in your business, which type is potentially eligible for 100% bonus depreciation that allows a larger first-year tax write-off? a. Compact car made in the USA b. Plug-in electric sedan c. Hybrid passenger auto d. Large sport utility vehicle (SUV) The answer is d While a compact car, an electric vehicle or a hybrid may save you money in gas and provide some nice tax breaks, a suitably heavy SUV, pickup, or van… Read more ›

May 25, 2022

Is a 403(b) Plan Right for Your Not-for-Profit?

The 403(b) plan is often thought of as a 401(k) plan for nonprofits. It’s probably not the only option for your not-for-profit, but it can provide certain advantages over 401(k)s. Following is a brief rundown. Generous Contribution Limits A 403(b) plan is a tax-favored qualified retirement plan set up for employees of not-for-profit organizations, including charities, hospitals, schools and government entities. As with other qualified plans, pre-tax contributions grow tax-free until withdrawals are made. Normally, employee contributions are deducted from… Read more ›

May 24, 2022

The Clean Energy Initiatives Your Dealership Shouldn’t Ignore

  The global wide push to “go green” has built momentum over the years, and research points toward an even greater increase in the American demand for clean energy going forward. While the movement has primarily centered around the adoption of electric vehicles, the clean energy trend isn’t just lucrative for car sales. There are myriad attractive clean energy initiatives that could result in significant tax savings for your auto dealership. While many clean energy initiatives have come and gone… Read more ›

May 16, 2022

Should You Diversify Your Investments with Rental Real Estate?

Many people invest in marketable securities, including stocks, bonds, money market funds and real estate investment trusts (REITs). But a less conventional investment option that’s historically paid off for many investors is purchasing a home or condo to rent out to third parties. This alternative may help diversify your existing portfolio and hedge against public market trends. With any investment, there are no guarantees of success, especially if you have a short time horizon. But rental properties may be a… Read more ›

May 10, 2022

After Tax Day: Take These Action Steps

The April tax filing deadline has passed, but that doesn’t mean you should push your taxes out of your mind until next year. Here are three tax-related actions that you should consider taking in the near term (if you filed on time and didn’t file for an extension). Retain the requisite records (2022 taxes) Depending on the specific issue, the IRS has years to audit your tax return so it’s critical to maintain the records you may need to defend… Read more ›

May 3, 2022

Hobby-Related Loss Deductions are Disallowed, but Don’t Give Up

  Let’s say you have an unincorporated sideline activity that you think of as a business, including an activity involving horses. If you have a net loss (deductible expenses exceed revenue) on that activity and you think you can deduct that loss on your personal federal income tax return, think again! In IRS audits and in court cases involving money-losing sidelines, the tax agency frequently argues the activities are hobbies, rather than businesses. Be aware that the federal income tax… Read more ›