Donating a vehicle might not provide the tax deduction you expect

| Tax Briefs

All charitable donations aren’t created equal — some provide larger deductions than others. And it isn’t necessarily just how much or even what you donate that matters. How the charity uses your donation might also affect your deduction. Take vehicle donations, for example. If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. Determining your deduction You can deduct the vehicle’s fair market value (FMV) if the charity: Read more [...]

Do you know the tax implications of your C corp.’s buy-sell agreement?

| Tax Briefs

Private companies with more than one owner should have a buy-sell agreement to spell out how ownership shares will change hands should an owner depart. For businesses structured as C corporations, the agreement also has significant tax implications that are important to understand.   Buy-sell basics   A buy-sell agreement sets up parameters for the transfer of ownership interests following stated “triggering events,” such as an owner’s death or long-term disability, loss of license or Read more [...]

Could stronger governance benefit your business?

| Business Briefs

Every company has at least one owner. And, in many cases, there exists other leadership through the organizational chart. But not every business has strong governance. In a nutshell, governance is the set of rules, practices and processes by which a company is directed and controlled. Strengthening it can help ensure productivity, reduce legal risks and, when the time comes, ease ownership transitions. Looking at business structure Good governance starts with the initial organization (or Read more [...]

Business owners: When it comes to IRS audits, be prepared

| Tax Briefs

If you recently filed your 2016 income tax return (rather than filing for an extension), you may now be wondering whether it’s likely that your business could be audited by the IRS based on your filing. Here’s what every business owner should know about the process. Catching the IRS’s eye Many business audits occur randomly, but a variety of tax-return-related items are likely to raise red flags with the IRS and may lead to an audit. Here are a few examples: Significant inconsistencies Read more [...]

Real estate investor vs. professional: Why it matters

| Tax Briefs

Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward. Of course the NIIT is part of the Affordable Care Act (ACA) and might be eliminated under ACA repeal and replace legislation or tax reform legislation. Read more [...]

Looking for concentration risks in your supply chain

| Business Briefs

Concentration risks are a threat to your supply chain. These occur when a company relies on a customer or supplier for 10% or more of its revenue or materials, or on several customers or suppliers located in the same geographic region. If a key customer or supplier experiences turmoil, the repercussions travel up or down the supply chain and can quickly and negatively impact your business To protect yourself, it’s important to look for concentration risks as you monitor your financials and engage Read more [...]

Why Must our 401(k) be Audited?

| Business Miscellaneous

Part 1 of 3 in the “How to Survive a 401(k) Audit” Series By Evan Rauch, CPA     For generations, defined benefit pension plans were the retirement plan standard for just about every employer. However, these pensions became financially draining for employers as the life expectancy of their retired employees increased, making way for a new type of retirement plan – the defined contribution plan or a profit sharing plan.  Nearly 40 years later, defined contribution plans have become the Read more [...]

The Crystal Client Spotlight shines on Verkler, Inc.

| Client Spotlight

It says a lot about someone’s skillset when he can feature the famous Notre Dame Football Stadium in his professional portfolio. Such was the good fortune of carpenter Harry Verkler, who originally started the construction company known today as Verkler, Inc., a long-time Alerding CPA Group client. Since its beginning in 1935 and eventual ownership by Jim and Fred Lusk, Verkler has become one of Indiana’s premier general contractors. It was recently recognized by the American Concrete Institute Read more [...]

Operating across state lines presents tax risks — or possibly rewards

| Tax Briefs

It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines. But therein lies a risk: Operating in another state means possibly being subject to taxation in that state. The resulting liability can, in some cases, inhibit profitability. Read more [...]

Want younger board members: Consider a second board

| Business Briefs, Business Miscellaneous

By Chris Mennel & Natalie Hopkins     If you have been around nonprofits for very long, you have discovered that recruiting new board members is an ongoing challenge. Finding the best mix of talent to fill their needs (finance, development, etc) within the right age demographic can be a struggle. Add to this mix the search for younger board members so the nonprofits can effectively plan their futures, and the challenge grows. To overcome this obstacle, an increasing number of organizations Read more [...]