FICA Maintains Grasp on Severance Payments Email CJ Resolving a split among the courts, the Supreme Court has ruled that severance payments are subject to the Federal Insurance Contributions Act (“FICA”). The tax code’s income tax withholding provisions generally define “wages” in substantially the same way that FICA does: all remuneration for employment, including the…
Uniform Administrative Requirements Final Guidance On Thursday, December 26, 2013 the Office of Management and Budget (“OMB”) published in the Federal Register | Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. In brief, OMB is streamlining the guidance currently in effect for Administrative Requirements (OMB Circulars A-89, A-102 and A-110), Cost Principles…
The Bottom Dollar Guarantee One of the major advantages of owning real estate in a partnership is the ability to leverage the real estate and distribute the proceeds of the borrowing to the partners on a tax free basis. ForExample: Individuals A & B equally own a Limited Liability Company that is treated as a…
Leasing to Tax-Exempt Entities Email Sara If you have a tenant that is a tax-exempt entity leasing your nonresidential real property, special rules for depreciation may apply. A tax-exempt entity is defined as: The United States, any state or its political subdivision, any U.S. possession, or any agency or instrumentality of the foregoing. An…
Real Estate Flipping – How to Land on Your Feet Do you think you work in real estate? Do you deduct your business expenses associated with flipping properties? Are you sure you’re allowed to? Even if you’ve answered yes to all these questions, read on. Under Section 162(a) of the Internal Revenue Code, a taxpayer…
Making that Successful Pitch to Potential Investors We have seen hundreds of “decks and heard as many “pitches” and have studied others’ guidelines on how to do them. We have unashamedly borrowed from others and added our own thoughts based on our experience to make this “secret sauce” recipe for success. Learn More About our…
The New Form 1023-EZ On July 1, 2014, the IRS released the new Form 1023-EZ, the streamlined application for recognition of exemption under Internal Revenue Code Section 501(c)(3). At only 3 pages long, it is a much shorter application than the Form 1023, which is twenty six pages long. The Form 1023-EZ allows smaller organizations…
Financial Regulations Regarding Use of Truncated Taxpayer Identification Numbers Published The Internal Revenue Service (“IRS”), on July 15, 2014, published in the Federal Register final regulations regarding truncated taxpayer identification numbers (“TTIN”). Where not prohibited by the Internal Revenue Code, applicable regulations or any other guidance published by the IRS, the final regulations allow for…
Tax Deduction Could Include Vacation Expenses Email Cathy My tax deduction could include my vacation expenses? That can’t be true! Oh, but it can be. But before you go online to book that Hawaiian dream vacation – just make sure you know the facts. If you are traveling to work for a charity, you…
Distinguishing a Contribution Versus an Exchange Transaction Distinguishing a contribution versus an exchange transaction can be difficult and even overlooked. Grants, membership dues and sponsorships are terms that are broadly used to refer not only to contributions but also to assets transferred in exchange transactions. The underlying substance of the transaction will be the indicator that drives…