MLR

Resources

Accounting for Business

Welcome to our Resources section, where you will find articles pertaining to accounting for business, business financial planning, financial advice, and the industries of our clients. This section is a great source of information, but please contact us if you feel you need professional financial advice. Maxwell Locke & Ritter is here to offer trusted guidance.

 

Frequently, investors engage in securities transactions at year-end to improve their tax situation. This requires a basic understanding of the current tax rules for capital gains and losses. We want to review some of the important tax changes in the Tax Cuts and Jobs Act (TCJA) and how it affects investors and estate/gift planning with you.

The impact of the Tax Cuts and Jobs Act (TCJA) on businesses was just as significant as it was for individuals. For starters, the TCJA imposed a flat 21% tax rate on corporations, doubled the maximum Section 179 “expensing” allowance, limited business interest deductions and repealed write-offs for entertainment expenses. In addition, the TCJA made extensive changes affecting international taxpayers that could play an important role in any year-end planning decisions.

Year-end tax planning in 2019 remains as complicated as ever. Notably, many are still coping with the massive changes included in the biggest tax law in decades—the Tax Cuts and Jobs Act (TCJA) of 2017—and determining the most favorable strategies. Among other key changes for individuals, the TCJA reduced tax rates, suspended personal exemptions, increased the standard deduction and revamped the rules for itemized deductions. Generally, the provisions affecting individuals went into effect in 2018, but are scheduled to “sunset” after 2025. This provides a limited window of opportunity in some cases.

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Financial transactions, including charitable donations, are increasingly being conducted online. For nonprofits without the appropriate IT infrastructure and security policies, this means greater cybercrime risk. This article discusses several hacking schemes and how nonprofits can protect against them, even with a limited budget.

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We have a few updates for nonprofit organizations, including reports on study findings that suggest that transparency results in more contributions, and looks at a pilot program aimed at bringing donors and investors together to fund not-for-profits. Also covered are surprising study findings on board diversity among nonprofits and Facebook’s fundraising effectiveness.

It’s common for owners of closely held businesses to transfer money into and out of the company. But it’s critical to make such transfers properly. If you don’t, you might hear from the IRS.

Recordkeeping for reimbursing business travel expenses can be cumbersome. Instead of reimbursing employees for the actual costs they incur for out-of-town lodging, meals and incidentals, some employers opt to pay fixed travel per diems. These amounts are based on IRS-approved rates that vary from locality to locality. Here’s what you’ll need to know to determine if this simplified approach is right for your business.

If you have acquired, constructed or substantially improved a building this year, or even in previous years, the tax benefits of a cost segregation study might be of interest to you. It may allow you to accelerate depreciation deductions, reduce your current taxes and boost cash flow.

We have been named the 2019 “#1 Best Mid-sized Accounting Firm to Work for” by Accounting Today. Each year, the publication works with Best Companies Group to create their Best Accounting Firms to Work for list, identifying 100 firms that have excelled in creating quality workplaces for employees. Maxwell Locke & Ritter has been named to the prestigious list of employers consecutively since 2013, but 2019 marks the first time the firm has topped the list of mid-sized firms.

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Is your nonprofit thinking about merging or otherwise restructuring? You’re not alone. Whether to firm up their financial footing, pursue broader goals or change locations, organizations across the country are mulling restructuring. The good news for such nonprofits is that the IRS has made the process easier for some.