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 […]

Is my Scholarship tax-free?

If a student receives a scholarship or grant, all or part of the amounts received may be tax-free. Scholarships and grants are tax-free if certain conditions are met. In two new Private Letter Rulings, the IRS approved two private foundations’ procedures for awarding scholarships and grants. The awards were made on a nondiscriminatory basis and […]

Are taxes too high?

Are taxes too high? In a survey taken earlier this year, roughly two-thirds of people said “yes” when asked about federal, state sales and local property taxes. The survey was taken by the University of Chicago Harris School of Public Policy and the AP-NORC Center for Public Affairs Research. Only about one-quarter of those polled […]