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If you donate valuable items to charity and you want to deduct them on your tax return, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. How can you protect your deduction? First, be aware that in […]

Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD). How it works To reap the possible tax advantages of a QCD, you make a cash donation to an IRS-approved

If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation. 5

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period

Disaster-relief charities have long contended with sudden influxes of attention and donations. But any nonprofit could face this enviable “problem.” While your nonprofit is in a period of relative calm, consider how you might handle it. For example, track normal website traffic so you’ll recognize when interest in your organization is surging. Make sure you

Whether it’s inflation, trouble finding staffers in a tight labor market or cybersecurity, nonprofit leaders have a lot to worry about. Even though the economy is generally healthy, you can strengthen your not-for-profit to help withstand future challenges. First, keep an eye on cash. Routinely prepare cash and expense projections and review regular reports on

If your not-for-profit is shorthanded, you may decide to engage independent contractors to pick up some of the slack. Just make sure you’re collecting the right information. Organizations need a completed Form W-9 for every nonemployee they pay for services. Obtain this information before you pay contractors’ invoices. If a contractor doesn’t provide you with

Planned, legacy or deferred gifts are often larger than current donations, so not-for-profits can’t afford to neglect pursuing them. These gifts generally are made through wills and living trusts, retirement plan and life insurance beneficiary designations, or via more complex charitable annuities and trusts. Include information about planned gifts on your website and in promotional

Even if your not-for-profit rarely needs to reimburse staffers, board members or volunteers, reimbursement requests almost certainly will come up. A reimbursement policy will make the process easier and reduce the risk of any disagreements. Policies generally fall into one of two categories: accountable or nonaccountable. Reimbursements under an accountable plan generally aren’t taxable for