Tax and Accounting Desk

The federal government spending package titled the “Further Consolidated Appropriations Act, 2020,” does more than just fund the government. It extends certain income tax provisions which had already expired or were due to expire at the end of 2019. The agreement on the spending package also includes the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

U.S. Capitol building with American flag waving in front; image used for blog about tax law change update about extenders and provisions

Let’s look at some of the highlights.


Continue Reading

Creating a succession plan isn’t as difficult as you might think. If your top executive were to step down tomorrow, would your not-for-profit know how to make a smooth leadership transition or would your boat suddenly be rudderless? Research by the not-for-profit BoardSource has found that only 27% of charitable organizations have written succession plans. Most not-for-profits, therefore, face an uncertain future — one that could include lost funding, program disruption and even an early demise.

oval brown wooden conference table with chairs on wheels surrounding in a conference room with windows; image used for a blog about not-for-profit succession plan

An experienced advisor can guide you through the process. But there are several points for you and your board to keep in mind as you establish policies for replacing leaders.


Continue Reading

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, a director on our Entrepreneurial Advisory Services team. Danielle, welcome back to the Playbook.

Danielle: Thanks for having me again.

Jen: So a few episodes back we talked about revenue recognition. Another one of

The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking dogs or providing other services.

view of a car steering wheel and dashboard with a phone showing directions on a map; image used for blog about tax obligations for a side gig

Basically, if you receive income from one of the online platforms offering goods and services, it’s generally taxable. That’s true even if the income comes from a side job and even if you don’t receive an income statement reporting the amount of money you made.


Continue Reading

If your not-for-profit suffers from a chronic volunteer shortage or has had to put off large projects for lack of helping hands, corporate volunteers can be a boon. According to the Society for Human Resource Management, 47% of companies offer a community volunteer program for employees. Chief Executives for Corporate Purpose has found that large companies are even more likely to sponsor volunteer activities: 61% offer paid-release time volunteer programs or a structured corporate volunteer program.

blonde woman in a turquoise shirt volunteering with multiple children; image used for a blog about not-for-profit corporate volunteers

Teaming up with a well-known company can also raise your not-for-profit’s profile with potential donors and the media. And employees who participate may decide to become permanent volunteers or financial supporters.


Continue Reading

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, this week’s host, and I’m here today with Danielle Supkis Cheek, a Director on our Entrepreneurial Advisory Services team. Welcome back to the Playbook, Danielle.

Danielle: Thanks. Thanks for having me again.

Jen: So, we’ve done a series of accounting pronouncements from several of our other directors. What’s your perspective on some things that have been released recently?

Danielle: My big concern is actually the interplay between the various pronouncements. The pronouncements that we have coming out, particularly revenue recognition and the lease standards, are going to impact every single piece of the balance sheet, fairly simultaneously, within a one to two-year period.
Continue Reading

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

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