When partners pay expenses related to the business
It’s not unusual for a partner to incur expenses related to the partnership’s business. Your business should have a written firm policy that clearly states what will and won’t be reimbursed, including home office expenses. Contact the CPAs and business tax advisors at SEK for your business questions and for more tax tips.
Watch out for “income in respect of a decedent” issues when receiving an inheritance
Most people appreciate inheritances. But in some cases, they may turn out to be too good to be true. “Income in respect of a decedent” (IRD) may create a surprise tax bill for those inheriting certain types of property. Fortunately, there may be ways to minimize the IRD tax bite. Contact the CPAs and tax advisors at SEK for your tax questions.
Disaster relief charities: Know the rules before providing aid
Tax-exempt disaster relief charities are allowed to provide short-term emergency assistance and long-term aid to ensure that victims have necessities. But they must observe IRS rules. For more help following guidelines, contact the CPAs and business advisors at SEK.
DOL raises overtime salary threshold
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule that significantly increases the minimum salary threshold to qualify for certain overtime exemptions under the Fair Labor Standards Act (FLSA).
Taking the opposite approach: Ways your business can accelerate taxable income and defer deductions
Typically, businesses want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it prudent to do the opposite? And why would you want to? Contact the CPAs and business tax advisors at SEK for more information.
Why some businesses choose to execute a pivot strategy
Under a pivot strategy, a company consciously changes its strategic focus in a series of carefully considered and executed moves. Some common situations often prompt a pivot include financial distress, weak demand, competition or change of heart. Contact the CPAs and business advisors for help with your business strategic planning.
Nonprofits don’t lose as much to fraud, but risk requires action
Nonprofits suffer a median loss of $76,000 per fraud incident, according to the Association of Certified Fraud Examiners’ 2024 Report to the Nations. If your organization can’t afford to lose that much (and what nonprofit can?), make sure you have strong internal controls. This starts with training staffers, board members and some volunteers to recognize and report fraud. Contact the CPAs and business advisors at SEK for help with internal controls.
The pros and cons of turning your home into a rental
If you’re buying a new home, you may have considered keeping your current home and renting it out. This carries potential tax benefits and pitfalls. Contact the CPA's and tax advisors at SEK to answer your tax questions.
Estimating damages: Lost profits vs. diminished business value
In commercial litigation, it’s common for business valuation experts to measure damages based on lost profits, diminished business value or both. Both measures may be considered when a defendant’s wrongful conduct initially causes profits to decline for a period but eventually causes the plaintiff to go out of business. Contact the CPAs and business valuators at SEK to determine what’s right for your case.
Upcoming changes to federal award regulations
You may have heard changes are coming to the Uniform Guidance, which affects how federal awards are managed. Organizations need to understand how these changes could affect future requirements for a federal single audit.