Don’t procrastinate if you plan to transfer ownership of your life insurance policy
September 29, 2020 Knowledge Center
Don’t procrastinate if you plan to transfer ownership of your life insurance policy

Generally, the proceeds of your life insurance policy are included in your taxable estate. You can remove them by transferring ownership of the policy, but there’s a catch: If you wait too long, your intentions may be defeated. Essentially, if ownership of the policy is transferred within three years of your death, the proceeds revert […]

IRS announces per diem rates for business travel
September 25, 2020 Knowledge Center
IRS announces per diem rates for business travel

In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without […]

Can investors who manage their own portfolios deduct related expenses?
September 25, 2020 Knowledge Center
Can investors who manage their own portfolios deduct related expenses?

In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade or […]

Strategic CFOs – The Gatekeepers of Security | LABJ
September 25, 2020 In the News
Strategic CFOs – The Gatekeepers of Security | LABJ

by David Lam | Advances in automation, artificial intelligence, and cloud computing are taking over traditional accounting functions, and the continued rise of operational and strategic CFOs has meant CFOs are more likely to have oversight of technical operations for the whole company. CFOs must take ownership of this technology and its concomitant security.

COVID-19 testing, diagnostics not minimum essential coverage
September 24, 2020 COVID-19
COVID-19 testing, diagnostics not minimum essential coverage

In Notice 2020-66, the IRS recently determined that Medicaid coverage limited to COVID-19 testing and diagnostic services isn’t minimum essential coverage under a government-sponsored program. Thus, an individual’s eligibility for this coverage for one or more months doesn’t prevent those months from qualifying as coverage months for purposes of determining eligibility for the premium tax credit […]

How to report COVID-19-related debt restructuring
September 22, 2020 COVID-19
How to report COVID-19-related debt restructuring

Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic won’t be subject to the complex accounting rules for troubled debt restructurings (TDRs). Here are the details. Accounting for TDRs Under Accounting Standards Codification (ASC) Topic 310-40, Receivables […]

Factoring fraud risk into a business valuation
September 18, 2020 Knowledge Center
Factoring fraud risk into a business valuation

Business value is a function of risk and return. This is why, when appraising companies, valuation experts are always on the lookout for fraud risks. Although valuations typically aren’t designed to unearth dishonest behavior, experts may expand the scope of their engagement if they spot something suspicious — particularly if they believe financial statements are […]

What to do when the audit ends
September 18, 2020 Knowledge Center
What to do when the audit ends

Financial audits conducted by outside experts are among the most effective tools for revealing risks in not-for-profits. They help assure donors and other stakeholders about your stability — so long as you respond to the results appropriately. In fact, failing to act on issues identified in an audit could threaten your organization’s long-term viability. Working […]

Buy-sell agreements: A smart business decision also makes estate planning sense
September 17, 2020 Knowledge Center
Buy-sell agreements: A smart business decision also makes estate planning sense

Do you own a business with one or more individuals? Undoubtedly, your interest in the business represents a substantial part of your net worth and is likely your “pride and joy.” So it’s normal if your fondest wish is for the business to continue long after you’re gone or for you to keep it running […]

Tax implications of working from home and collecting unemployment
September 15, 2020 Knowledge Center
Tax implications of working from home and collecting unemployment

COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations. 1. Working from home. Many employees have been told not to come into their workplaces due to the pandemic. If you’re an employee who “telecommutes” — that is, you work at […]

On-time financial reporting is key in times of crisis
September 11, 2020 Knowledge Center
On-time financial reporting is key in times of crisis

Many companies are struggling as a result of shutdowns and restructurings during the COVID-19 crisis. To add insult to injury, some have also fallen victim to arson, looting or natural disasters in 2020. Lenders and investors want to know how your business has weathered these adverse conditions and where it currently stands. While stakeholders understand […]

Homebuyers: Can you deduct seller-paid points?
September 11, 2020 Knowledge Center
Homebuyers: Can you deduct seller-paid points?

Despite the COVID-19 pandemic, the National Association of Realtors (NAR) reports that existing home sales and prices are up nationwide, compared with last year. One of the reasons is the pandemic: “With the sizable shift in remote work, current homeowners are looking for larger homes…” according to NAR’s Chief Economist Lawrence Yun. If you’re buying […]