Do you have kids in college?

Do you have kids in college or are you in school yourself? You may be eligible for an education tax break. The American Opportunity Tax Credit (AOTC) covers 100% of the first $2,000 of tuition and eligible expenses, and 25% of the next $2,000 of expenses. With the AOTC, you can claim up to $2,500 […]

Tax Extenders

According to U.S. House Majority Leader Steve Scalise (R-LA), Republicans plan to extend tax cuts enacted by 2017’s Tax Cuts and Jobs Act if the party wins both congressional houses and the presidency on Nov. 5, 2024. Scalise has said they’ll use the “budget reconciliation” process, which requires a simple majority vote in the Senate […]

The tax advantages of including debt in a C corporation capital structure

Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corporation that needs more capital. You should know that the federal tax code treats corporate debt more favorably than corporate equity. So for shareholders of closely held C corporations, it can be a tax-smart move to include […]

How does the ACA premium tax credit impact the deficit?

Republican members of the House Ways and Means Committee have asked the Congressional Budget Office and the Joint Committee on Taxation how making the Affordable Care Act’s premium tax credit permanent would affect the deficit and health care costs in general. The lawmakers are requesting the “budgetary effects on outlays, revenues and the deficit.” The […]

The Federal Disaster Tax Relief Act

The U.S. House of Representatives has passed the Federal Disaster Tax Relief Act by a vote of 382 to 7. The legislation is a standalone bill carved out from the broader Tax Relief for American Families and Workers Act, which passed the House last January but has stalled in the U.S. Senate. Among other things, […]

New survey reveals top audit committee concerns

Audit committees act as gatekeepers over the accounting and financial reporting processes, including the effectiveness of the company’s control environment. However, as the regulatory landscape becomes increasingly complex and organizations face evolving risks, the scope of an audit committee’s responsibilities may extend beyond traditional financial reporting. Top-of-mind list In March 2024, a survey entitled “Audit […]

Revocation of tax-exempt status?

The IRS regularly revokes the tax-exempt status of nonprofit organizations that violate its rules. Such revocations often carry dire consequences because itemizing donors may no longer claim tax deductions for their gifts. This can, in turn, dramatically reduce donations. To help protect your nonprofit from losing its exempt status, follow all applicable IRS rules. For […]

How Stiff Are Your State’s Distilled Spirits Taxes?

How Stiff Are Your State’s Distilled Spirits Taxes? https://bit.ly/4e5IULf

Encourage your heirs with an incentive trust

In the courts; US Tax Court finds donor not liable for gift tax

In a new U.S. Tax Court decision, a donor’s estate wasn’t liable for gift tax after the termination of a qualified terminable interest property (QTIP) trust and distribution of its assets. The QTIP owner’s widow funded it with closely held corporation shares. When she later terminated the trust, she received the assets and transferred stock […]