Applying For-Profit Accounting Principles at Non-Profit Organizations

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At the SuiteWorld19 conference, Chris Whitfield, CFO of MANA Nutrition, talked about how he uses his background in for-profit companies at his newest position in the not-for-profit industry. He stressed that the organizations have more in common than one might assume, and those similarities offer finance professionals in nonprofits an opportunity to apply more for-profit […]

IRS Sets 2019 Vehicle Depreciation Limits  

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The Internal Revenue Service has released the depreciation deduction limits for passenger autos (including trucks and vans) first placed in service during 2019. These annually inflation-adjusted numbers represent the maximum income tax depreciation allowed under the luxury automobile rules. In Revenue Procedure 2019-26, tables set forth the new depreciation limits. Table 1 provides the depreciation […]

Internal Revenue Service sets 2020 limits on HSA contributions

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The IRS recently announced the annual inflation-adjusted limits on deductions for contributions to a health savings account (HSA) allowed for taxpayers with individual or family coverage under a high-deductible health plan (HDHP) for calendar year 2020. Under Internal Revenue Code Sec. 223, individuals who participate in an HDHP are permitted a deduction in computing their […]

Annual Tax Data Book Released by the Internal Revenue Service

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The Internal Revenue Service recently released its 2018 Data Book, which summarizes that agency’s operating activity for fiscal-year 2018 (October 1, 2017 through September 30, 2018). Always interesting, the Book notes that during this period, the IRS collected nearly $3.5 trillion in revenue and processed more than 250 million tax returns and other forms and […]

New Proposal to Tax Unrealized Capital Gains

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An occasionally-discussed income tax concept relating to capital gains is being revived by the top-ranking Democrat on the Senate Finance Committee, Oregon Senator Ron Wyden. Wyden is proposing that certain wealthy taxpayers ante up each year for the value growth in their investment accounts rather than waiting for those investment assets to be liquidated and/or […]

IRS Reform Package Offered by Bipartisan Members of the House Ways and Means Committee

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This week a bipartisan measure was passed by House Ways and Means Committee members.  The bill includes  measures designed to protect taxpayers from unfair practices and improve Internal Revenue Service (IRS) operations. The bill, HR 1957, is intended to redesign the operational structure of the IRS with the intent of making the agency more efficient […]

IRS Issues Guidance Clarifying the Treatment of Refunds with New State and Local Tax (SALT) Limitations

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Historically, individual taxpayers have been allowed an itemized income tax deduction for one hundred (100) percent of all state and local income taxes paid in a calendar year.  The amounts paid were generally based on estimates and rarely matched the actual liabilities due to various nuances in the tax laws for each jurisdiction and fluid […]

Joint Committee on Taxation Addresses the QBI Deduction

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One of the most discussed provisions of the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, is the addition of the Qualified Business Income (QBI) deduction available under new Internal Revenue Code §199A. This provision allows equity owners of qualifying pass-through entities to deduct up to 20% of the qualifying business […]

Substantiation Rules for Charitable Contributions Continue to Baffle

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As April 15th (the annual D-Day for U.S. taxpayers) is rapidly approaching, confusion still exists as to how to properly substantiate a donation or charitable contribution to a qualifying tax-exempt organization. The lack of clarity relates mostly to a seemingly endless series of technical changes to the substantiation requirements by the Internal Revenue Service. Obtaining […]