Changes to Accounting Methods under Tax Reform

The Tax Cuts and Jobs Act (TCJA) includes a number of crucial changes to accounting methods for federal income tax purposes. In general, the new law increases gross receipt thresholds and indexes them for inflation. Taxpayers are required to use the accrual basis accounting, account for inventories, capitalize certain overhead costs as inventory or use […]

Nonprofits: Take Note of Expense Reporting Changes

Nonprofits must be on their toes nowadays. New regulatory changes are being introduced constantly, many in just the last two years, including: an updated accounting standard that requires a complete overhaul of the reporting process; a tax law that threatens future donations revenue; and, new state-wide audit requirements. It can be a lot to keep […]

New Reporting Rules Impact Nonprofit Organizations

Most nonprofit executives are focused on fundraising, service and program delivery, staff development and community relations. Ensuring the organization is well funded and staffed to provide the services needed to meet the mission statement is usually at the top of the list. So on the list of priorities, financial reporting may sometimes fall lower on […]

Supreme Court Ruling Affects Online Retailers, Without Physical Nexus, to Collect Sales Tax

For the past 25 years, businesses have relied on Quill Corp. v. North Dakota for not imposing sales tax collections when their business lacked an in-state physical presence. After much debate, the highest court ruled in favor of South Dakota on June 21st in South Dakota v. Wayfair, Inc. The Supreme Court stated that Quill is […]

Changes to Depreciation Under Tax Reform

Calculator - Taxes

The Tax Cuts and Jobs Act (TCJA), signed into law in the final days of 2017, contains many changes that impact depreciation rules. While these changes are largely positive, there are some potential pitfalls taxpayers should be aware of. First-year bonus depreciation The TCJA increases the bonus depreciation percentage from 50% to 100% for qualified […]

Changes to the Meals and Entertainment Expenses Deduction

The new Tax Cuts and Jobs Act (TCJA) made some significant changes to a popular perk for business owners: the deduction for meals and entertainment expenses. Meals and Entertainment Expenses Deduction Prior to TCJA Prior to the TCJA, the Tax Code generally allowed businesses to deduct 50% of meals and entertainment expenses, with a few […]