Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m here Chris Hatten, the leader of our transaction advisory services practice. Chris, welcome back to the Playbook.

Chris: It’s my pleasure to be here.

Jen: So, Chris, how would you describe the current state of the M&A markets?

Chris: Well, if I had one word, I would say “hot.” Right now, it’s probably the busiest I can recall it being in my career. I think what kicked it off for us is a lot of the sell-side transaction once people came out of COVID and were ready to get going again.

Jen: So, is that the main driver or are you seeing other factors in what’s making M&A markets so hot?

Continue Reading The Current State of M&A Markets

A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding not-for-profit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier.

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Even so, if recent challenges have led your organization to consider restructuring, it’s important to work with a professional advisor, such as a CPA.

Continue Reading Not-for-Profit Restructuring – What are the Challenges?

If you own a valuable piece of art, or other property, you may wonder how much of a tax deduction you could get by donating art to charity.

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The answer to that question can be complex because several different tax rules may come into play with such contributions. A charitable contribution of a work of art is subject to reduction if the charity’s use of the work of art is unrelated to the purpose or function that’s the basis for its qualification as a tax-exempt organization. The reduction equals the amount of capital gain you’d have realized had you sold the property instead of giving it to charity.

For example, let’s say you bought a painting years ago for $10,000 that’s now worth $20,000. You contribute it to a hospital. Your deduction is limited to $10,000 because the hospital’s use of the painting is unrelated to its charitable function, and you’d have a $10,000 long-term capital gain if you sold it. What if you donate the painting to an art museum? In that case, your deduction is $20,000.

Continue Reading What You Need to Know About Donating Art to Charity

If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined.

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The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle.

Continue Reading Have a Business Automobile? Know the Tax Rules

Many homeowners across the country have seen their home values increase recently. According to the National Association of Realtors, the median price of homes sold in July of 2021 rose 17.8% over July of 2020. The median home price was $411,200 in the Northeast, $275,300 in the Midwest, $305,200 in the South and $508,300 in the West. Be aware of the tax implications if you’re selling a home or you sold one in 2021. You may owe capital gains tax and net investment income tax (NIIT).

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Continue Reading Will You Owe Tax When Selling a Home?

You might think that artificial intelligence (AI) is just about using computers to perform complex tasks that otherwise would require human intelligence. That’s part of it. But several technologies fall under the AI umbrella, including machine learning, natural language processing (NLP) and robotic process automation.

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Here’s how tools such as these can help not-for-profits cut costs and achieve mission-critical objectives.

Continue Reading The Benefits of AI Technology for Your Not-for-Profit

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take.

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What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, fire, act of vandalism or a terrorist attack.

Continue Reading Claiming Casualty Loss Tax Deduction in Certain Situations