Developing News: 2017

Year-End Tax Planning: The Devil is in the Details

Beginning in 2018, the total amount of state tax deductions allowed as an itemized deduction will be limited to $10,000. This includes both income and real estate taxes.

Sometimes, state taxes can be deducted when prepaid. Several articles have been written that suggest prepaying your 2018 real estate tax bill prior to December 31, 2017. This will allow you to get the tax deduction on your 2017 tax return before the $10,000 limit comes into play.

But this is only a good idea if it works! One crucial detail must be in place for this planning idea to work: For real estate taxes to be prepaid,

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The IRS issued Regulations significantly altering partnership audit rules for partnership tax years beginning after December 31, 2017. These new rules are called the Consolidated Partnership Audit Regime (CPAR). They are intended to allow the IRS to efficiently audit, assess, and collect taxes at the partnership level.

Partnership agreements may need amendments to address several critical elements to changes in the law and associated regulations to avoid negative consequences.

When the IRS audits a partnership under CPAR, the IRS may assess a partnership level “imputed underpayment,” at the top available tax rate (individual or corporate) in effect at the time of the net audit adjustments.

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On December 4, 2017, the Department of Treasury issued Notice 2017-73, indicating Treasury’s thinking of what the Proposed Regulations on Donor Advised Funds (DAFs) might be. The Notice asks for input by March 5, 2018, on areas Treasury is considering issuing Regulations. A Notice is a way to request informal feedback prior to issuing Proposed Regulations.

The Notice requests input in four areas:

  1. Two examples where distributions from DAFs may provide more than “incidental” benefit to a donor, donor advisor or related person;
  2. Circumstances under which a distribution may be made from a DAF without consideration of whether there was a personal pledge outstanding to the grantee from the donor,

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COSO Series Article Part 1 of 6: The following article is the first part of a six-part series to explore the high-level basics of the COSO1 Integrated Internal Control Integrated Framework (the Framework). The following provides an overview of the Framework itself.

Identifying and Setting Objectives

If you are a manager, director, or business owner, you know the importance of a solid mission statement. You also know the importance of maintaining a clear view of the objectives and goals of the organization.

Your specific objectives may be financially focused, customer-service focused, philanthropically focused, or any unique combination. They could also be other goals set out by your organization.

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On Thursday, November 2, the House Ways and Means Committee released H.R. 1, the Tax Cuts and Jobs Act. This is just the beginning of the sausage-making process. Most of the legislation is focused on individuals and businesses. However, there are some special treats for the tax-exempt sector and there is much to be commented on. The following is a first take on the highlights and lowlights, through the charitable sector lenses.

Individual Tax Provisions That May Affect Charitable Contributions
Itemized Deductions vs. Standard Deduction and the Personal Exemption

  • Keeps the charitable contribution deduction intact for individual taxpayers as an itemized deduction and increases the limit on cash contributions from 50% to 60% of adjusted gross income (AGI).

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If you’re a supplier for Microsoft who handles sensitive information, you are likely well aware of the Supplier Security and Privacy Assurance program (SSPA).

The SSPA’s Data Protection Requirements (DPR) recently received an update that represents a significant change to the contents and direction of the program. The revision was intended to update the previous framework for the General Data Protection Regulations (GDPR) coming out of the EU, which will be effective in May, 2018.

As a result, the revised framework has some new requirements, which suppliers need to be aware of to remain compliant. In addition, other existing requirements were clarified or enhanced,

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Online marketplace sellers can take advantage of a new multi-state tax amnesty program – if they apply by October 17, 2017.

Online marketplace platforms allow big and small companies to access a global market without incurring significant advertising or marketing costs. For those sellers that are looking to expand their customer base, using an online marketplace might be an attractive option.

Many sellers that utilize online marketplace providers also take advantage of marketplace providers’ order fulfillment services. Order fulfillment services help sellers avoid headaches by allowing them to take advantage of economies of scale. They do this by acting as an outside resource that maintains inventory,

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The Washington Legislature approved the paid family leave program on June 30, 2017 – but now what? What does the Paid Family Leave Act mean for your small business?

First, you may be wondering when it will become effective. The bill states that premiums need to be remitted beginning on January 1, 2019, and the benefits are available to participants beginning in 2020.

The bill also offers eligible workers up to 12 weeks of paid time off for birth, adoption, or for a serious medical condition. “Serious medical condition” refers to a condition that is afflicting either the worker, or the worker’s family (both fathers and mothers qualify following birth or adoption).

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Introducing a little one to the family is a very exciting time. That said, there are some financial logistics to consider, before your bundle of joy arrives, that will help protect your family’s financial future.

These are the not-so-fun topics that are crucial parts of parenting – and are much easier to get in place before baby arrives. We’ve outlined a few of the most important financial planning steps below.

1. Life and Disability Insurance

Maybe you already have life insurance or maybe it’s just time to revisit your policy to make sure it still meets your family’s needs. Either way,

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April 21, 2020 update: To provide accounting relief and clarity during the COVID-19 crisis, the FASB published an exposure draft with proposals to delay the effective dates for Leases (Topic 842). Find more information here.

After a long wait, the Financial Accounting Standards Board (FASB) approved the new lease accounting standard (Accounting Standards Update 2016-02 “ASU 2016-02”) in February 2016. For public companies, reporting requirements will come into effect for years beginning after December 15, 2018.  For all other businesses, these requirements will take effect for fiscal years beginning after December 15, 2019.

Possible impact on lending requirements

The FASB acknowledged that the additional lease liabilities recognized upon adopting ASU 2016-02 could cause some businesses to violate debt covenants or affect access to credit.

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