Tax and Accounting Desk

A celebrity — whether they’re Hollywood stars, hometown sports heroes or local TV news anchors — can provide a big boost to the not-for-profits they publicly support. The flip side is that stars can also harm an organization by association.

Accusations connected with the #MeToo movement and other crises have recently brought down many famous people and, in some cases, caused major headaches for the charities they’ve supported.

Continue Reading Not-for-Profits: Know Who You’re Partnering With

If you’re the parent of a child who is age 17 to 23, and you pay all (or most) of his or her expenses, you may be surprised to learn you’re not eligible for the child tax credit.

But there’s a dependent tax credit that may be available to you. It’s not as valuable as the child tax credit, but when you’re saving for college or paying tuition, every dollar counts!

Continue Reading How You (and Your College Student) Qualify for Dependent Tax Credit

If you think that, once your not-for-profit receives its official tax-exempt status from the IRS, you don’t have to revisit it, think again. Whether your organization is a Section 501(c)(3), Sec. 501(c)(7) or other type, be careful.

The activities you conduct, the ways you generate revenue and how you use that revenue could potentially threaten your exempt status. It’s worth reviewing the IRS’s exempt-status rules to make sure your organization is operating within them.

Continue Reading Keeping Your Not-for-Profit Tax-Exempt Status

Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required.

Filing Requirements
Generally, you must file a gift tax return for 2018 if, during the tax year, you made gifts: Continue Reading Upcoming Deadline: 2018 Gift Tax Return

In recent years watchdog groups, the media and others have increased their scrutiny of how much not-for-profits spend on programs vs. administration and fundraising. Your organization likely feels pressure to prove that it dedicates most of its resources to programming. However, accounting rules require that you record the full cost of any activity with a fundraising component as a fundraising expense.

How then can you maintain an appealing fundraising ratio? That’s where allocating joint costs comes in.

Continue Reading Do You Know How Joint Cost Allocating Works?

It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return.

For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles are deductible only in much more limited circumstances. TCJA changes could also affect your tax benefit from medical and charitable miles.

Continue Reading What Individual Taxpayers Need to Know About Vehicle-Expense Deductions

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Kimberly Wood, an Audit Senior Manager and one of the faces of PKF Texas’ Transaction Advisory Services Team. Kimberly, welcome back to The Playbook.

Kimberly: Thanks for having me.

Jen: We’ve talked a little bit about transactions. To prevent the delay of a transaction, what should a seller do?

Continue Reading Transaction Tips: Prevent the Delay of a Sale

Whistleblower policies protect individuals who risk their careers — or take other kinds of risks — to report illegal or unethical practices. Although no federal law specifically requires not-for-profits to have such policies in place, several state laws do. Moreover, IRS Form 990 asks not-for-profits to state whether they have adopted a whistleblower policy.

Adopting a whistleblower policy increases the odds that you’ll learn about activities before the media, law enforcement or regulators do. Encouraging stakeholders to speak up also sends a message about your commitment to good governance and ethical behavior.

Continue Reading How Your Not-For-Profit Can Protect Whistleblowers

Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why?

The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities.

Continue Reading If You Own a Pass-Through Entity… Beware the Ides of March

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Kimberly Wood, an Audit Senior Manager and one of the faces of the PKF Texas Transaction Advisory Services Team. Kimberly, welcome back to The Playbook.

Kimberly: Thanks for having me.

Jen: Last time, you mentioned getting your financial house in order. What does that look like for a company?

Continue Reading The Importance of Getting Your Financial House in Order