Construction Accounting – How to Account for Costs of Construction Contracts

Timely and accurate cost accounting can assist in managing projects, costs and cash flow. By Jake Dopson, assurance manager, CPA, CCIFP One of the most critical accounting functions that construction contractors must consider is the appropriate processes and methodologies used in accounting for costs of construction. Not only do contractors have to consider recording such costs accurately within their financial … Read More

Tax Services – 990 and Governance in Nonprofit Organizations

Though not a new requirement, the 990 form highlights governance issues for nonprofit boards of directors By James M. Haynes, CPA Since 2008, the Internal Revenue Service has highlighted good governance practices of tax-exempt organizations on the Form 990. This form is a filing requirement for nonprofits, nonexempt charitable trusts, and section 527 political organizations. It asks questions regarding the … Read More

Are All Activities of a Nonprofit Exempt from Taxation?

Boosting revenue can be tricky for nonprofits. Could the activity be considered taxable? By Robert A. De Pasquale, CPA Nonprofit entities have reacted to today’s economic realities by proactively increasing their sources of revenue, whether from seeking more charitable donations or from boosting their program service revenue. When considering whether to expand their sources of revenue beyond these two typical … Read More

Tax Laws of Business Income

Several business provisions in the tax law are available only through 2013. For this reason, it may be prudent to plan to use them by the end of the year. They include: Section 179 expensing of up to $500,000 of new or used equipment when total fixed asset additions do not exceed $2 million for the year  Lesser expensing is … Read More

Deductions from Gross Income

Certain deductions from gross income have been extended only through the end of the year, so it may be prudent to begin identifying opportunities to take advantage of those tax breaks. Among the provisions are: The deduction of up to $250 for K-12 teachers’ expenses The deduction of up to $4,000 of tuition and related expenses (limited at higher income … Read More

Tax Deductions in Retirement Savings

In a typical qualified retirement plan, a tax deduction is allowed for contributions made to the plan, and future distributions are taxable. For a Roth IRA, no deduction is allowed for contributions, but distributions of original contributions and income can be tax free.   Last year, a qualified retirement plan could allow participants to contribute to a Roth account. Plans … Read More

Charitable Contributions

A number of natural disasters have already occurred this year. Unfortunately, disasters bring out scam artists who impersonate charities to obtain money or private information under false pretenses. Be sure to verify charitable organizations before sending a check or providing a credit card number. Now is the time to document charitable contributions made so far this year. Receipts or canceled … Read More

Credits

The dependent care credit for children under 13 has been permanently extended. Eligible expenses of up to $3,000 for one child and up to $6,000 for two or more children are allowed. The dependent care credit for children under 13 has been permanently extended. Eligible expenses of up to $3,000 for one child and up to $6,000 for two or … Read More