If you’re adopting a child, or you adopted one this year, there may be significant tax benefits available to offset the expenses. For 2019, adoptive parents may be able to claim a nonrefundable credit against their federal tax for up to $14,080 of “qualified adoption expenses” for each adopted child. (This amount is increasing to $14,300 for 2020.) That’s a dollar-for-dollar reduction of tax — the equivalent, for someone in the 24% marginal tax bracket, of a deduction of over $50,000.

a young boy in a green shirt, holding both hands on a red heart on a wooden table; image used for a blog about tax savings of adopting a child

Adoptive parents may also be able to exclude from their gross income up to $14,080 for 2019 ($14,300 for 2020) of qualified adoption expenses paid by an employer under an adoption assistance program. Both the credit and the exclusion are phased out if the parents’ income exceeds certain limits, as explained below.

Adoptive parents may claim both a credit and an exclusion for expenses of adopting a child. But they can’t claim both a credit and an exclusion for the same expense.

Continue Reading Adopting a Child Comes with Tax Savings

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back once again with Nicole Riley, one of our audit senior managers and one of the faces of PKF Texas’ Not-for-Profit team. Nicole, welcome back to the Playbook.

Nicole: Great to be back.

Jen: So, I’ve heard you in presentations talk about the functional expense schedule for not-for-profits. What is this and what do not-for-profits need to know about it?

Continue Reading Tips for Your Not-for-Profit’s Functional Expense Schedule

In response to the transparency issues around proxy advisory firms, the Securities and Exchange Commission (“SEC”) recently proposed new rules for proxy advisory firms. A proxy advisory firm helps institutional investors vote their shares at shareholder meetings. Because institutional investors have a wide variety of holdings, the specific risks and issues they must assess vary. The services proxy advisory firms provide include agenda assessment, research and recommendations on how to vote on shareholder proposals at publicly traded companies, and other offerings.

closeup shot of three men sitting at a wooden table by a glass window; image used for a blog post about the Securities Exchange Commission proposed rules for proxy advisory firms and shareholder voting

While more information can be a good thing, critics believe the additional information proxy advisory firms provide isn’t always conveyed with the best interests of Main Street investors in mind. So, if finalized, the SEC’s new rules would require proxy advisory firms to disclose more about their process and potential conflicts of interest and give companies the opportunity to make revisions before making final recommendations to clients. Specifically, the SEC’s proposals would revise the existing proxy advisory rules in three significant ways:

Continue Reading Proposed Rules from SEC Impact Proxy Advisory Firms and Shareholder Voting

With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand the tax rules associated with these expenses.

a close up photo of a green christmas tree with red and pink glass ornaments with two brown-haired women in the background; image used for a blog post about tax breaks from holiday parties and gifts

Are they tax deductible by your business and is the value taxable to the recipients?

Continue Reading How Holiday Parties and Gifts Can Provide Tax Breaks

As trusted business advisors, we enjoy working with you to co-create ideas and co-develop innovative solutions for your business. To supplement this, we also want to provide valuable information, including upcoming Houston events that we support, and think may be of interest to you.

  • Greater Houston Women’s Chamber of Commerce
  • Turnaround Management Association
  • National Association of Corporate Directors

If you have questions about any event details or registration information, the organization-specific contacts are below. We hope to see you at any or all of these Houston events!

Continue Reading Mark Your Calendars! Upcoming December 2019 Houston Events…

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I am back once again with Marty Lindle, one of our audit directors and one of the faces of PKF Texas’ Broker-Dealer team. Marty, welcome back to the Playbook.

Marty: It’s nice to be here.

Jen: So, we’ve talked a little bit about what’s in the eighth annual report. Now, is there anything new coming up on the horizon that’s not in there already?

Marty: Well, the SEC and Congress still haven’t issued the final rules for an inspection program, so we’re still in the interim program.

Continue Reading What’s Coming from the PCAOB Annual Inspection Report?

The Greater Houston Women’s Chamber of Commerce is hosting its annual Gala on December 5, 2019 at the Royal Sonesta, where they will honor the 2019 Hall of Fame inductees. PKF Texas is a proud sponsor for this event, which promotes the growth and success of women professionals.

The Gala proceeds benefit the Women’s Chamber programs of work in the Houston community, including:

  • Providing scholarships for deserving young women graduating from Aldine, Houston, Spring, and Spring Branch School Districts to attend a Texas college of their choice, and;
  • The Chamber’s Smart Start Program for Women Entrepreneurs, a program to help entrepreneurs strengthen their businesses, stabilize and increase their incomes, create additional employment and contribute to the economic development of the Greater Houston area, and;
  • STEAM Town USA, an initiative to increase exposure of third grade girls’ interest in math and science through STEAM (Science, Technology, Engineering, Arts & Math) concepts, improve grades and graduation rates, and encourage girls to pursue STEAM careers.

The women of PKF Texas are looking forward to attending and supporting the inductees being recognized in the Hall of Fame and are ready to meet you!

For more information and to get a ticket, visit www.ghwcc.chambermaster.com.

As we all know, medical expenses, such as services and prescription drugs, are expensive. You may be able to deduct some of your expenses on your tax return, but the rules make it difficult for many people to qualify.

a yellow toy ambulance with red and black stripes sitting on a white wood table; image used for a blog post about tax deductions for medical expenses

However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.

Continue Reading Medical Expenses – How to Qualify for a Tax Deduction

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Marty Lindle, one of our audit directors and one of the faces of PKF Texas’s Broker-Dealer team. Marty, welcome back to the playbook.

Marty: Great to be here.

Jen: What are some typical findings you see when you’re auditing the broker-dealers?

Continue Reading Deficiencies Auditors Find with Broker-Dealers