A Special Tax Break for Songwriters

Finally, a break for the starving artist! Well, a tax break that is. And this tax break is not for all artists, but only for songwriters. Generally, those who purchase and sell the rights to songs or music catalogs get capital gains treatment on the sale. However, when a songwriter sold a song, it was …

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Accounting for Joint Activities

Determining whether an organization conducts joint activities and properly accounts for these activities can be challenging at times, as it can be subjective depending on the fundraising activity. In our experience, we have encountered not-for-profit organizations with joint activities that could partially be divided into separate expense categories. Not-for-profits have three categories to allocate expenses …

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Sales of New Homes in Metro Phoenix Surge in July

Many economists believe this year’s surge in homebuilding is beginning to look more and more like a real recovery of the Valley’s new-home market. New Home Permits Issued in July 2015 are 55% Higher than Prior Year The Phoenix Housing Market Letter published by RL Brown and Greg Burger reports that: New home sales were …

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Accounting for gift cards

Gift cards can have many benefits to a company. They increase cash flow, bring in new customers and can result in increased income. As beneficial as they can be, when it comes to accounting for gift cards, as well as ensuring that you’re in compliance with various state laws, there’s a lot to be aware …

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Foreign Pensions from a U.S. Tax Perspective

As the IRS continues to increase their focus on exposing hidden foreign accounts of U.S. taxpayers, it is important to be aware of all filing requirements and be in compliance to avoid excessive penalties. One area that is commonly missed is foreign pensions. Many taxpayers assume if they hold a foreign pension that has no …

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IRS “Get Transcript” Fiasco Gets Worse

Following the Sarbanes Oxley Act more than a decade ago, security and fraud have been two of the cornerstone focuses of the accounting profession. Proper and secure system controls have become a necessity, not only for auditors and tax accountants, but for every profession in business. This may lead one to believe that the IRS, …

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Pushing for Tax Reform – Retirement Plans

The American Institute of Certified Public Accountants (AICPA) has participated in U.S. House of Representatives, Committee on Small Business hearings on tax reform with the goal of ensuring that main street isn’t left behind. One area of focus in this regard has to do with retirement plans. Small businesses are especially burdened by the overwhelming …

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Overpaying the Affordable Care Act Individual Mandate

According to a report from the National Taxpayer Advocate, more than 300,000 taxpayers overpaid the Individual Shared Responsibility Payment (ISRP) for health insurance on their tax returns processed through the end of April 2015. Most of those taxpayers were charged the ISRP, also known as the individual mandate, because they did not have health insurance …

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Do I need an audit?

As a sponsor of an employee benefit plan, along with annual reporting requirements, you may be required to undergo an audit of your plan’s financial statements. What are the reporting requirements and what triggers an audit? This varies depending on the type and size of the plan you sponsor. One participant plans (a business owner …

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Accounting for lease incentives and tenant allowances

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, see our article on preparing for the new lease standard. Many leases include incentives offered in the form of free or reduced rent, or …

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