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Blogging Beyond the Numbers

Posted by: Mike Scholz 2 years ago
The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. Sec. 199 deduction 101 The Sec. 199 deduction, also called the “domestic production activities deduction,” is 9% of ...
Promise to Give
Posted by: Kyle Ager 2 years ago
Many non-profit organizations struggle determining whether the communication they received from a donor represents a conditional promise to give, an unconditional promise to give, or an intention to give. This article will help to shed some light on a complicated subject. Promises to give, which are commonly referred to as pledges, represent an agreement for a donor to contribute cash or other assets to an...
Posted by: Bruce Mayer 2 years ago
The rules for accounting for leases in a set of financial statements in accordance with GAAP (Generally Accepted Accounting Principles) will change significantly starting in 2020. The logic for making the change is that balance sheets are currently very different for businesses that own a building compared to businesses that rent a building. To enhance comparability between businesses the Financial Accounti...
Investment Interest
Posted by: Mike Scholz 2 years ago
Investment interest — interest on debt used to buy assets held for investment, such as margin debt used to buy securities — generally is deductible for both regular tax and alternative minimum tax purposes. But special rules apply that can make this itemized deduction less beneficial than you might think. Limits on the deduction First, you can’t deduct interest you incurred to produ...
Posted by: Mike Scholz 2 years ago
If you’re like many Americans, you might not start thinking about filing your tax return until close to this year’s April 18 deadline. You might even want to file for an extension so you don’t have to send your return to the IRS until October 16. But there’s another date you should keep in mind: January 23. That’s the date the IRS will begin accepting 2016 returns, and filing as close ...
Posted by: Mike Scholz 2 years ago
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000. Type of limit 2017 limit Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans $18,000 C...
Posted by: Mike Scholz 2 years ago
There are many ways to save for a child’s or grandchild’s education. But one has annual contribution limits, and if you don’t make a 2016 contribution by December 31, the opportunity will be lost forever. We’re talking about Coverdell Education Savings Accounts (ESAs). How ESAs work With an ESA, you contribute money now that the beneficiary can use later to pay qualified education expenses: ...
Posted by: Mike Scholz 2 years ago
President Obama signed into law the 21st Century Cures Act (the Act) on December 13th which allows small employers to provide Health Reimbursement Arrangements (HRAs) for their employees without facing penalties for failing to satisfy certain Affordable Care Act (ACA) requirements. Furthermore, the Act retroactively grants penalty relief for plan years beginning on or before December 31, 2016. HRAs are esse...
Posted by: Mike Scholz 2 years ago
The lower fuel prices we experienced in 2016 means the 2017 business mileage rates are also dropping. The Internal Revenue Service recently announced the standard mileage rates for 2017 for taxpayers to use in calculating the deductible costs of driving a car for business, charitable, medical or moving purposes. In Notice 2016-79, the IRS lists the standard mileage rates, effective as of Jan. 1, 2017: ...
Posted by: Christin Biermeier 2 years ago
The holiday season is known as the time for giving, and who better to give to than your favorite non-profit organization. These year-end contributions may not come in the form of cash as expected, but rather as a promise from a contributor to give in the future. As a non-profit, how does your organization account for these promised contributions? The timing of revenue recognition is tied to the date of...