FASB Simplifies Merger Accounting for Nonprofits The Financial Accounting Standards Board (FASB) recently issued guidance that should ease the financial reporting burden on nonprofits that enter “business combinations,” such as mergers and acquisitions. The title of the guidance is a mouthful, but it probably tells you everything you need to know: Accounting Standards Update (ASU) […]
Category: Tax
Mandatory Tax E-Filings Are Right Around The Corner
Under the newly enacted Taxpayer First Act, all nonprofits will soon need to file their information returns electronically. Depending on the size of your organization, the requirement could take effect as soon as next year. What’s required? The Taxpayer First Act requires nonprofits to file their report statements or returns in the Form 990 series […]
Construction Innovators Can Still Claim the Research Tax Credit
There are innovators in every industry, including construction. If your company happens to be one, you may be able to claim the research tax credit, which remains available under the Tax Cuts and Jobs Act. Explore eligibility To be eligible, an innovation-seeking business activity generally must do several things. First, it must relate to development […]
IRS guidance: Publishing relationship didn’t produce UBTI
You’re no doubt aware of the risk of generating unrelated business taxable income (UBTI). But you might not realize that the terms of your relationship with an outside publisher for your membership magazine or journal can trigger the tax on UBTI by creating an agency relationship. Some recent guidance from the IRS sheds light on […]
TCJA could inspire you to change your business structure
Since its passage in late 2017, the Tax Cuts and Jobs Act (TCJA) has given business owners and their tax advisors plenty to think about. One ongoing item of interest to contractors is whether their chosen business structure still makes sense in light of tax law reform. What’s the deal? The TCJA slashed federal corporate […]
Deconstructing the TCJA’s deduction for business income
We’re fast approaching the one-year anniversary of the passage of the Tax Cuts and Jobs Act (TCJA). All these months later, the law continues to challenge tax experts and business owners alike as they try to implement strategies to maximize the tax savings from the act. One example is the new tax deduction for qualified […]
After the TCJA: How to keep the giving going this holiday season
Thanksgiving through the end of the year is traditionally the big fundraising season for nonprofits. In one GuideStar survey, U.S. charities received as much as 50% of their annual donations between October and December. And although the holiday spirit moves many donors to give, it’s the charitable tax deduction that typically spurs them to make […]
Tips on managing and reducing payroll costs
Every construction company must pay its employees, so some payroll costs are unavoidable. But precisely how you should go about paying your employees can change over time. What made sense a few years ago may not be as logical or efficient now. Let’s look at some ways contractors can streamline payroll tasks to keep costs […]
Educating donors about what they can — and can’t — deduct
Education may not officially be part of your nonprofit’s mission. But while working with donors, you’ve probably noticed that many are confused about the federal tax deductibility of their contributions. To help prevent unwelcome surprises when donors file their returns, inform them about the tax benefits of different types of donations. Cash, ordinary income and […]
Planning can help your nonprofit minimize negative effects
Months after the Tax Cuts and Jobs Act (TCJA) was signed into law, nonprofits are still trying to assess its consequences. Some of the early proposals that raised alarms in the charitable sector — such as a repeal of the Johnson amendment — didn’t make it into the final version of the law. But there’s […]