How to nail down current deductions If your business completes minor repairs by December 31, you can deduct those costs on your 2023 tax return. But different tax rules apply to improvements. As opposed to repairs, improvements are capital expenditures that must be written off over time. Safe harbors How can you tell whether work …..

The BDO 2023 Nonprofit Standards Benchmarking Survey of more than 250 nonprofits highlights a crucial shift in the nonprofit sector towards strategic resilience, marking a departure from the reliance on recent federal funding. Data from our annual survey reveals that in response to economic uncertainties, nonprofits are prioritizing digital transformation (42%), cost reduction (38%), and …..

Incredible advances in technology in recent years have enabled organizations to connect with and serve stakeholders in new and increasingly efficient ways. This includes leveraging artificial intelligence (AI) and chatbot technologies to revolutionize higher education operations, offering many benefits to institutions and their various stakeholders. In the past few years, we have seen higher education …..

Proper determination and reporting of component units is essential for complete and accurate financial reporting. However, complexity in this area poses a challenge to governments in identifying and assessing the component units and the correct presentation. This article provides an overview of the accounting standards defining the financial reporting entity, the types of component units …..

The chorus of a popular ’80s song says, “I always feel like somebody’s watching me.” Not-for-profit entities (NFP) have their financial information available on a variety of platforms including, but not limited to, the NFP’s website, the public inspection copy of its Form 990, and perhaps on its state attorney general’s website, if the NFP …..

Nonprofits have endured the challenges of adopting several new accounting standards over the last several years.  Now, after a lengthy deferral period, the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326):  Measurement of Credit Losses on Financial Instruments), commonly referred to as CECL or “Current Expected …..

When examining the availability of tax credits, organizations in the nonprofit and local government space typically disregard the opportunity as inapplicable to their organizations. To tax-exempt entities, the concept of leveraging credits to lower their tax burden may seem at odds with their tax status. However, to help build a more sustainable and equitable future, …..

The 3.8% net investment income tax (NIIT) is an additional tax that applies to some higher-income taxpayers on top of capital gains tax or ordinary income tax. Fortunately, there are strategies you can use to soften the blow of the NIIT. Are you subject to the NIIT? You’re potentially liable for the NIIT if your …..

Starting January 1, 2024, a significant number of businesses will be required to comply with the Corporate Transparency Act (“CTA). The CTA was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from …..

In recent times, the IRS has intensified its efforts to combat questionable Employee Retention Credit (ERC) claims, issuing more than 20,000 disallowance letters to businesses. This article delves into the highlights of these disallowance letters and provides essential information on navigating the financial aspects of returning to work for retirees. Disallowance of ERC Claims Initial …..

Tax credits are far more valuable than tax deductions. Unlike a deduction, which reduces a business’s taxable income, a credit reduces the business’s tax liability dollar for dollar. Tax credits aren’t unlimited, however. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC), found in Internal Revenue Code …..

Nathan Wechsler is pleased to announce that Cody Gut, a manager on our team, has been elected as the Treasurer of the Young Professionals Group at the Associated Builders and Contractors (ABC) New Hampshire & Vermont Chapter. In this role, Cody Gut will play a crucial part in steering the financial initiatives of the Young …..

Life insurance can provide peace of mind, but if your estate will be large enough that estate taxes will be a concern, it’s important to not own the policy at death. The policy’s proceeds will be included in your taxable estate and may be subject to estate tax. To avoid this result, a common estate …..

Every business owner should have an exit strategy that helps recoup the maximum amount for his or her investment. Understanding the tax implications of a business sale will help you plan for — and, in some cases, reduce — the tax impact. One option is to sell your business to a third party. Here are …..

By Marc R. Berger, CPA, JD, LLM The IRS on June 9, 2023, released generic legal advice memorandum AM 2023-004,[1] which addresses whether developing paid name, image and likeness (NIL) opportunities for collegiate student-athletes furthers an exempt purpose under Internal Revenue Code Section 501(c)(3). The memorandum concludes that many 501(c)(3) organizations developing these opportunities for …..

With an increasing focus on environmental, social and governance (ESG) issues, some organizations are seeking ways to fund various ESG initiatives. Tax credits and incentives have played an important role in subsidizing ESG initiatives, with the Inflation Reduction Act significantly enhancing their impact on environmental investments. However, the often-overlooked social aspect of ESG can also …..

Many in the nonprofit world know Form 990 as the all-important nonprofit tax form that details an organization’s activities and financial standing. In addition to justifying an organization’s tax-exempt status, Form 990 reveals key information that charity-rating organizations and grantmakers use when evaluating nonprofits. The IRS does not mandate that nonprofit boards review Form 990, …..

Decades of innovation have transformed the finance office from a mindset of processing transactions to one of strategic financial management. But even with this advancement, nonprofit organizations are operating in an increasingly complex environment that requires them to balance routine and new tasks with a higher volume of information. When the topic of efficiency is …..

According to BDO Middle Market CFO Outlook Survey, 64% of chief financial officers (CFOs) believe environmental, social and governance (ESG) adoption will improve their organization’s long-term financial performance. However, for sustainability initiatives to succeed, ESG needs to be a cross-functional collaboration. Finance leaders must play a leading role in advancing their organization’s ESG strategy as …..

On July 10, 2023, the Governmental Accounting Standards Board issued Implementation Guide No. 2023-1, Implementation Guidance Update-2023 (Implementation Guide 2023-1). Implementation Guide 2023-1 contains 10 new questions and one amendment to a previously issued question-and-answers document. All questions within Implementation Guide 2023-1 are effective for fiscal years beginning after June 15, 2023, with earlier application …..