You likely already know that year end is the optimal time for not-for-profits to conduct gift-giving campaigns. Donors are more generous during the holidays, and many people wait until the last minute to make tax-deductible gifts before the Dec. 31 deadline. In fact, according to Double the Donation, 10% of all charitable giving occurs on the […]
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Your not-for-profit organization is probably assisted by volunteers who aren’t financially compensated. But your staff — including executives — are almost certainly paid a commensurate salary and benefits for their work. Compensation issues are always tricky, but they’re made more so by tax and legal requirements for nonprofits. Setting executive pay is particularly fraught because if
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The $1.7 trillion federal omnibus spending package that was signed by President Biden on Friday, December 23 did not include a provision to reverse the recently enacted requirement that businesses amortize their R&D expenses. This was despite industry pressure for an extension or removal of the requirement to begin amortizing R&D expenditures, which went into
No Relief: R&D Expenses Must Be Amortized Read More »
The Inflation Reduction Act that became law in August included a provision that increases, expands, and extends the investment tax credit (ITC) for solar photovoltaic systems installed on residential properties. The law restores the 30% tax credit that was previously available for systems installed prior to 2020 and is applicable to qualifying installations completed between
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On November 8 voters in Massachusetts narrowly approved a constitutional amendment authorizing an additional personal income tax of 4 percent on all annual income above a $1 million threshold. While similar amendments have been proposed and voted on in prior years, this is the first time the measure has passed. Proponents estimate the new tax,
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With inflation continuing to pose a financial challenge American taxpayers will soon be getting some relief from the Internal Revenue Service (IRS). Annual inflation adjustments made by the IRS went into effect in 1985. For the 2023 tax year the IRS is increasing the standard deduction and adjusting the income limits for tax brackets. The
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The Social Security Administration (SSA) recently announced that the “wage base” for computing Social Security tax will increase for 2023 to $160,200. This is up from $147,000 for 2022. Federal law limits the amount of earnings that are subject to the Old-Age, Survivors, and Disability Insurance (OASDI) tax in a given year. This threshold, referred to
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By Martin E. Prendergast Gray, Gray & Gray, LLP While the recently enacted Inflation Reduction Act is making headlines for its energy and healthcare facets – along with a big ramp up in IRS muscle – there are several provisions that could benefit practitioners in the architectural and engineering fields. Here are some highlights of
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If your organization has met the IRS qualifications to be considered tax-exempt, the income you receive — such as donor contributions — is exempt from federal income tax. However, it’s still possible for not-for-profits to follow the rules and experience adverse tax consequences. Here are five potential tax traps that could catch you off guard. 1.
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Do you have a relatively new business with less than $1 million in annual gross revenues? You may be eligible for as much as $100,000 in tax credits. Under the American Recovery Rescue Plan, a company founded or incorporated after February 15, 2020 may be classified as a “Recovery Startup Business.” These recent startups (provided
Recent Startup? You Could Be Eligible for Up to $100,000 in Tax Credits Read More »