Basis is an important tax concept. The most recent reminder of the importance of getting basis right is the 2015 law that requires executors of some estates to report basis information for assets transferred to beneficiaries. Taxable estates that filed an estate return after July 31, 2015, must file a new form, which is due 30 days after the estate return is filed or by June 30, 2016, whichever is later. The beneficiaries, in turn, must use the information to calculate gain or loss when the inherited asset is sold.
From a June 1, 2016, article posted in the AICPA's online Tax Advisor.
For a variety of complex tax, business, and operational purposes, tax-exempt entities may create complex organizational systems similar to their taxable counterparts that contain a variety of related entities: parents, subsidiaries, brothers, and sisters. These systems can contain both tax-exempt and taxable entities with a "parent" entity that coordinates the overall mission and activities of the whole system.
All Sec. 501(c)(3) organizations default to private foundation status unless described in Secs. 509(a)(1)-(4) (i.e., per se charities, publicly supported organizations, supporting organizations, and organizations that test for public safety). Therefore, complications may arise when the parent of a large, multientity system applies for recognition of tax-exempt status as a Sec. 501(c)(3) public charity. Through "derivative exemption" (i.e., carrying out the activities that a related organization could perform directly), the parent generally meets the requirements to be described in Sec. 501(c)(3); however, it must also rely on supporting organization status to qualify as a public charity.
Disaster preparedness involves answering the question: How would a disaster affect your business? If you're not sure, it's time to start planning. Here's a quick look at how you can prepare beforehand, and what relief might be available afterward.
BEFORE DISASTER STRIKES
Identify key issues. Bring together managers of key areas and brainstorm on the critical steps needed to recover from a disaster. Consider at least two scenarios: a company-specific event such as a fire that affects only your business, and a regional disaster that affects the whole area. Since you can't anticipate every need, your goal is to identify key issues and make basic preparations.
Establish a communications protocol. Think about how you'll communicate with employees, vendors, and customers.
One benefit of midyear tax planning is that you have a solid foundation for making decisions and enough time to implement them. In addition, because the rules haven't changed much this year, you can use last year's tax return as a starting point for 2016 planning ideas. We encourage you to review your current tax situation.
Early retirement, delayed retirement, phased retirement – if you've decided this summer is your time to leave the workforce, you have decisions to make. One of them is whether you will need to pay estimated taxes. While you may expect your income to decrease when you're not working, remember that you might be withdrawing funds from your IRAs and other retirement accounts, selling investments from your brokerage accounts, and drawing social security.
The prices you set for your products and services affect every aspect of your business, including long-term viability, short-term profits, market share, and customer loyalty. While the guidebook or financial guru who can provide the perfect answer to this important decision doesn't exist, tried-and-true principles can help. Here are three suggestions to arrive at reasonable pricing for your market and industry.
Cover costs. The price you charge for a particular product must at least equal the cost of producing that product. Depending on your industry, production costs might include raw materials, storage, salaries, advertising, delivery, rent, equipment, taxes, and insurance.
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