GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if TAX PLANNING FOR PAYMENTS TO BUY OUT AN EXITING PARTNER The Basic Tax Rules. Payments made by a partnership to liquidate (or buy out) an exiting partner’s entire interest are covered by Section 736 of the Internal Revenue Code. This is also true of payments made by the partnership to liquidate the entire interest of a deceased partner’s successor in interest (usually the estate or surviving

spouse).

HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities PROTECT YOUR PROPERTY FROM JUDGMENTS AND LIENS Judgments. First, you could suffer a judgment, whether it arises out of your ownership of the property – as with someone who is injured on the premises – or with an unrelated incident, such as an automobile accident, in which your property is seized to satisfy the judgment. One way to protect yourself is through liability insurance. SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. EXECUTIVE PHYSICAL EXAMS AND HEALTH SAVINGS ACCOUNT ISSUES Answer: Yes, health care reform may affect executive physical programs. Such programs typically provide for a comprehensive annual exam that includes more diagnostic tests than a standard well-adult visit. For example, in addition to a physical exam and standard lab tests, an executive physical might include an electrocardiogram,

visual acuity

LOW INTEREST RATES FAVOR CHARITABLE LEAD TRUSTS For those who are charitably inclined, the current low interest rate environment tends to favor charitable lead trusts over their better-known cousins, charitable remainder trusts. With a charitable remainder trust (CRT), a donor transfers assets into a trust with annual payments to you or your designated noncharitable beneficiary. This payment may be in the formRead more › CAN PARTNERS DEDUCT BUSINESS EXPENSES THEY AREN'T The deduction can be described as “unreimbursed partnership business expenses.”. Of course, if the expenses in question are for meals or entertainment, only 50 percent of the costs can be deducted on Schedule E. The partner should also include the deductible amount as an expense for self-employment tax purposes on his or her Schedule SE.

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if TAX PLANNING FOR PAYMENTS TO BUY OUT AN EXITING PARTNER The Basic Tax Rules. Payments made by a partnership to liquidate (or buy out) an exiting partner’s entire interest are covered by Section 736 of the Internal Revenue Code. This is also true of payments made by the partnership to liquidate the entire interest of a deceased partner’s successor in interest (usually the estate or surviving

spouse).

HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities PROTECT YOUR PROPERTY FROM JUDGMENTS AND LIENS Judgments. First, you could suffer a judgment, whether it arises out of your ownership of the property – as with someone who is injured on the premises – or with an unrelated incident, such as an automobile accident, in which your property is seized to satisfy the judgment. One way to protect yourself is through liability insurance. SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. EXECUTIVE PHYSICAL EXAMS AND HEALTH SAVINGS ACCOUNT ISSUES Answer: Yes, health care reform may affect executive physical programs. Such programs typically provide for a comprehensive annual exam that includes more diagnostic tests than a standard well-adult visit. For example, in addition to a physical exam and standard lab tests, an executive physical might include an electrocardiogram,

visual acuity

LOW INTEREST RATES FAVOR CHARITABLE LEAD TRUSTS For those who are charitably inclined, the current low interest rate environment tends to favor charitable lead trusts over their better-known cousins, charitable remainder trusts. With a charitable remainder trust (CRT), a donor transfers assets into a trust with annual payments to you or your designated noncharitable beneficiary. This payment may be in the formRead more › CAN PARTNERS DEDUCT BUSINESS EXPENSES THEY AREN'T The deduction can be described as “unreimbursed partnership business expenses.”. Of course, if the expenses in question are for meals or entertainment, only 50 percent of the costs can be deducted on Schedule E. The partner should also include the deductible amount as an expense for self-employment tax purposes on his or her Schedule SE.

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial 2021 RELEASE 2 HIGHLIGHTS: HEIGHTENED VISIBILITY AND Release 2 is now live for 2021. We’re excited to bring you this feature-packed update with new functionality that delivers heightened visibility and flexibility across Sage Intacct. A few of the exciting highlights include: Saving time reconciling with matching rule automation Efficiently managing the close process with improved checklists and visibility into close status GainingRead more › IRS CLARIFIES TAX TREATMENT OF EXPENSES PAID WITH PPP Last week in Rev. Rule 2020-27 and Rev. Proc. 2020-51, the IRS clarified that PPP borrowers who have not yet received forgiveness but have “a reasonable expectation of reimbursement” as of the end of the tax year cannot deduct expenses paid for with the loan in 2020. For borrowers with denied or partially denied loans who want to claim VIC.AI TRANSFORMS APPROVAL MANAGEMENT WITH GROUND-BREAKING Vic.ai, the AI (artificial intelligence) platform for accounting productivity, recently announced a brand new feature, Autonomous Approval Flows — introducing a first-of-its-kind approval matrix that streamlines the previously inefficient and error-prone approval process. The pairing of Vic.ai’s existing Autopilot feature and Autonomous Approval Flows allows both invoice and approval WHAT’S THE DIFFERENCE BETWEEN SAGE INTACCT AND QUICKBOOKS Like more than 80% of small businesses, many nonprofits begin their financial lives using Intuit® QuickBooks® to manage accounting. It’s easy to use, well known, and offers entry-level accounting functionality at an affordable price. But as these organizations grow, they often face significant challenges and hidden costs as they hit the limits of QuickBooks’ functionality.Read more › THE KEY INGREDIENT FOR STRONG FINANCIAL MANAGEMENT Creative Dining’s accounting practices didn’t match the high caliber of its customer-centric foodservice offerings. Prone to frequent crashes, QuickBooks was poorly suited to scale with the company’s rapid growth. Creative Dining staff at client locations spent hundreds of hours each week manually entering data into Google Sheets to produce P&L reports, which would then needRead more › EBOOK: 2021 CLOSE THE BOOKS-LIVING ON THE LEDGER Closing the books for many organizations is an exercise in stamina and endurance. For nearly 60%, the close process takes over a week, delaying access to reliable information vital to business direction. To better understand the close process and help you find ways to accelerate your time to actionable insights, we at Sage Intacct

runRead more ›

CLOUD INTEGRATION STARTS WITH A STRONG SAAS BACKBONE The challenge of integrating a growing stable of SaaS applications along with legacy on premises software will be daunting for the next several years. Choosing flexible core applications will be paramount as organizations cope with an unprecedented pace of business change that will stress legacy software. Consider choosing one application to be the integration pointRead more › DO I HAVE TO ALLOW GRANDPARENT VISITS AFTER MY DIVORCE Depending on the state, grandparents may not be able to file for visitation rights while the grandchild’s parents are married. But there are exceptions, such as: 1. The parents are living separately. 2. A parent’s whereabouts are unknown (and have been for at least a

month). 3.

DYNAMIC ALLOCATIONS

GRF's Elinor Litwack Recognized as part of NYN Media's Nonprofit 40 Under 40 Class of 2021. Learn More ›

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial UPDATE ON GOVERNMENT ASSISTANCE: PPP, SVOG AND ERC HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

EXPLORING THE OMB UPDATE Exploring the OMB Update – Revised Uniform Guidance 2 CFR 200. This interactive discussion is on the updates to Uniform Guidance (2 CFR 200) which is revised effective November 12, 2020. The Uniform Guidance provides the rules for grants and cooperative agreements funded by the U.S. Government. The revision reflects a foundational

shift to

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial UPDATE ON GOVERNMENT ASSISTANCE: PPP, SVOG AND ERC HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

EXPLORING THE OMB UPDATE Exploring the OMB Update – Revised Uniform Guidance 2 CFR 200. This interactive discussion is on the updates to Uniform Guidance (2 CFR 200) which is revised effective November 12, 2020. The Uniform Guidance provides the rules for grants and cooperative agreements funded by the U.S. Government. The revision reflects a foundational

shift to

HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities MAKING COMMERCIAL ITEM DETERMINATIONS Prime Contractors are expected to use the same or similar procedures as government buyers to make “commercial item determinations.” Under U.S. government cost-based contracts, prime contractors and all of their subcontractors are required to purchase supplies and services from responsible sources at fair and reasonable prices, including those determined to be commercial items. The U.S WHAT CAN EMPLOYERS DO WITH FORFEITED EMPLOYEE FSA BALANCES When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information. Flexible Spending Account Basics Under an employer-sponsored flexible spending account (FSA) plan MAKE A TAX-SMART REDEMPTION OF C CORP STOCK The general rule for a stock redemption payment received by a C corporation shareholder is the payment is treated as a taxable dividend to the extent of the corporation’s earnings and profits (similar to the financial accounting concept of retained earnings). However, the Tax Code provides exceptions to SUBCONTRACTOR DUE DILIGENCE: 8 QUESTIONS TO ASK Prime contractors are responsible for negligence in the selection of subcontractors. In one fraud perpetuated against the U.S. Department of Interior’s Fish and Wildlife Service, two individuals were engaged in a series of transactions that were intended to hide the involvement of one of them from the government. How Prohibited Involvement Was Concealed From theRead more › 2021 RELEASE 2 HIGHLIGHTS: HEIGHTENED VISIBILITY AND Release 2 is now live for 2021. We’re excited to bring you this feature-packed update with new functionality that delivers heightened visibility and flexibility across Sage Intacct. A few of the exciting highlights include: Saving time reconciling with matching rule automation Efficiently managing the close process with improved checklists and visibility into close status GainingRead more › HOW AI AUTOMATES APPROVALS FOR SMALL-AND MEDIUM-SIZED For small and medium-sized business, automating approvals can be difficult since there are usually no efficient systems in place for handling approvals in the first place. Inherent Problems with Manual Approvals If you don’t have a technology platform that can receive, extract, and understand incoming costs, a human needs to step into that role. TheRead more › IRS CLARIFIES TAX TREATMENT OF EXPENSES PAID WITH PPP Last week in Rev. Rule 2020-27 and Rev. Proc. 2020-51, the IRS clarified that PPP borrowers who have not yet received forgiveness but have “a reasonable expectation of reimbursement” as of the end of the tax year cannot deduct expenses paid for with the loan in 2020. For borrowers with denied or partially denied loans who want to claim PROTECT YOUR PROPERTY FROM JUDGMENTS AND LIENS Judgments. First, you could suffer a judgment, whether it arises out of your ownership of the property – as with someone who is injured on the premises – or with an unrelated incident, such as an automobile accident, in which your property is seized to satisfy the judgment. One way to protect yourself is through liability insurance. VIC.AI TRANSFORMS APPROVAL MANAGEMENT WITH GROUND-BREAKING Vic.ai, the AI (artificial intelligence) platform for accounting productivity, recently announced a brand new feature, Autonomous Approval Flows — introducing a first-of-its-kind approval matrix that streamlines the previously inefficient and error-prone approval process. The pairing of Vic.ai’s existing Autopilot feature and Autonomous Approval Flows allows both invoice and approval WHAT’S THE DIFFERENCE BETWEEN SAGE INTACCT AND QUICKBOOKS Like more than 80% of small businesses, many nonprofits begin their financial lives using Intuit® QuickBooks® to manage accounting. It’s easy to use, well known, and offers entry-level accounting functionality at an affordable price. But as these organizations grow, they often face significant challenges and hidden costs as they hit the limits of QuickBooks’ functionality.Read more › EBOOK: 2021 CLOSE THE BOOKS-LIVING ON THE LEDGER Closing the books for many organizations is an exercise in stamina and endurance. For nearly 60%, the close process takes over a week, delaying access to reliable information vital to business direction. To better understand the close process and help you find ways to accelerate your time to actionable insights, we at Sage Intacct

runRead more ›

DYNAMIC ALLOCATIONS

GRF's Elinor Litwack Recognized as part of NYN Media's Nonprofit 40 Under 40 Class of 2021. Learn More › BUSINESS INTELLIGENCE SOLVED Home / Events / Business Intelligence Solved – BI Tool Level Reporting Native to A Best in Class System / Events / Business Intelligence Solved – BI Tool Level Reporting Native to A Best in

Class System

IS THAT APPROVED? THE MANY APPROVAL WORKFLOWS WITH A BEST Additional Program Details. Learning Objective: To provide attendees an overview of how a best-in-class solution makes your approval workflows digital, improves auditability, and expedites your visibility into your organization’s financial performance. Instructional Delivery Methods: Group Internet-based Recommended CPE: 1.0 CPE Recommended Fields of Study: Information Technology – Cloud

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial UPDATE ON GOVERNMENT ASSISTANCE: PPP, SVOG AND ERC WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

AUDIT, REVIEW AND COMPILATION: HOW CPA REPORTS DIFFER Audit, Review & Compilation: How CPA reports differ Many companies provide their financial statements, along with a CPA’s report, to lenders, investors, suppliers and customers. Informed readers of the report will gain varied levels of comfort based on the type of financial statement provided. Not all reports are the same. A CPA can provide differentRead more › MAKING COMMERCIAL ITEM DETERMINATIONS Prime Contractors are expected to use the same or similar procedures as government buyers to make “commercial item determinations.” Under U.S. government cost-based contracts, prime contractors and all of their subcontractors are required to purchase supplies and services from responsible sources at fair and reasonable prices, including those determined to be commercial items. The U.S SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. YEAR-END STRATEGIES TO REDUCE ADJUSTED GROSS INCOME HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities ARE YOU OWED MONEY FROM A BUSINESS THAT FILED FOR This means that a bankruptcy case cannot be filed in a state court. Suppose you have been doing business with a company that owes you money or has been late in paying for services that you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed for bankruptcy. WHAT CAN EMPLOYERS DO WITH FORFEITED EMPLOYEE FSA BALANCES When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information. Flexible Spending Account Basics Under an employer-sponsored flexible spending account (FSA) plan

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial UPDATE ON GOVERNMENT ASSISTANCE: PPP, SVOG AND ERC WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

AUDIT, REVIEW AND COMPILATION: HOW CPA REPORTS DIFFER Audit, Review & Compilation: How CPA reports differ Many companies provide their financial statements, along with a CPA’s report, to lenders, investors, suppliers and customers. Informed readers of the report will gain varied levels of comfort based on the type of financial statement provided. Not all reports are the same. A CPA can provide differentRead more › MAKING COMMERCIAL ITEM DETERMINATIONS Prime Contractors are expected to use the same or similar procedures as government buyers to make “commercial item determinations.” Under U.S. government cost-based contracts, prime contractors and all of their subcontractors are required to purchase supplies and services from responsible sources at fair and reasonable prices, including those determined to be commercial items. The U.S SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. YEAR-END STRATEGIES TO REDUCE ADJUSTED GROSS INCOME HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities ARE YOU OWED MONEY FROM A BUSINESS THAT FILED FOR This means that a bankruptcy case cannot be filed in a state court. Suppose you have been doing business with a company that owes you money or has been late in paying for services that you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed for bankruptcy. WHAT CAN EMPLOYERS DO WITH FORFEITED EMPLOYEE FSA BALANCES When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information. Flexible Spending Account Basics Under an employer-sponsored flexible spending account (FSA) plan 2021 RELEASE 2 HIGHLIGHTS: HEIGHTENED VISIBILITY AND Release 2 is now live for 2021. We’re excited to bring you this feature-packed update with new functionality that delivers heightened visibility and flexibility across Sage Intacct. A few of the exciting highlights include: Saving time reconciling with matching rule automation Efficiently managing the close process with improved checklists and visibility into close status GainingRead more › HOW AI AUTOMATES APPROVALS FOR SMALL-AND MEDIUM-SIZED For small and medium-sized business, automating approvals can be difficult since there are usually no efficient systems in place for handling approvals in the first place. Inherent Problems with Manual Approvals If you don’t have a technology platform that can receive, extract, and understand incoming costs, a human needs to step into that role. TheRead more › IRS CLARIFIES TAX TREATMENT OF EXPENSES PAID WITH PPP Last week in Rev. Rule 2020-27 and Rev. Proc. 2020-51, the IRS clarified that PPP borrowers who have not yet received forgiveness but have “a reasonable expectation of reimbursement” as of the end of the tax year cannot deduct expenses paid for with the loan in 2020. For borrowers with denied or partially denied loans who want to claim PROTECT YOUR PROPERTY FROM JUDGMENTS AND LIENS Judgments. First, you could suffer a judgment, whether it arises out of your ownership of the property – as with someone who is injured on the premises – or with an unrelated incident, such as an automobile accident, in which your property is seized to satisfy the judgment. One way to protect yourself is through liability insurance. VIC.AI TRANSFORMS APPROVAL MANAGEMENT WITH GROUND-BREAKING Vic.ai, the AI (artificial intelligence) platform for accounting productivity, recently announced a brand new feature, Autonomous Approval Flows — introducing a first-of-its-kind approval matrix that streamlines the previously inefficient and error-prone approval process. The pairing of Vic.ai’s existing Autopilot feature and Autonomous Approval Flows allows both invoice and approval WHAT’S THE DIFFERENCE BETWEEN SAGE INTACCT AND QUICKBOOKS Like more than 80% of small businesses, many nonprofits begin their financial lives using Intuit® QuickBooks® to manage accounting. It’s easy to use, well known, and offers entry-level accounting functionality at an affordable price. But as these organizations grow, they often face significant challenges and hidden costs as they hit the limits of QuickBooks’ functionality.Read more › EBOOK: 2021 CLOSE THE BOOKS-LIVING ON THE LEDGER Closing the books for many organizations is an exercise in stamina and endurance. For nearly 60%, the close process takes over a week, delaying access to reliable information vital to business direction. To better understand the close process and help you find ways to accelerate your time to actionable insights, we at Sage Intacct

runRead more ›

DYNAMIC ALLOCATIONS

GRF's Elinor Litwack Recognized as part of NYN Media's Nonprofit 40 Under 40 Class of 2021. Learn More › CLOUD INTEGRATION STARTS WITH A STRONG SAAS BACKBONE Home / Cloud Integration Starts with a Strong SaaS Backbone / Cloud Integration Starts with a Strong SaaS Backbone BUSINESS INTELLIGENCE SOLVED Home / Events / Business Intelligence Solved – BI Tool Level Reporting Native to A Best in Class System / Events / Business Intelligence Solved – BI Tool Level Reporting Native to A Best in

Class System

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if TAX PLANNING FOR PAYMENTS TO BUY OUT AN EXITING PARTNER The Basic Tax Rules. Payments made by a partnership to liquidate (or buy out) an exiting partner’s entire interest are covered by Section 736 of the Internal Revenue Code. This is also true of payments made by the partnership to liquidate the entire interest of a deceased partner’s successor in interest (usually the estate or surviving

spouse).

SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities LOW INTEREST RATES FAVOR CHARITABLE LEAD TRUSTS For those who are charitably inclined, the current low interest rate environment tends to favor charitable lead trusts over their better-known cousins, charitable remainder trusts. With a charitable remainder trust (CRT), a donor transfers assets into a trust with annual payments to you or your designated noncharitable beneficiary. This payment may be in the formRead more › MUST JOINT ACTIVITIES BE TREATED AS PARTNERSHIPS? According to the Internal Revenue Code, some arrangements between several taxpayers must be classified as partnerships for tax purposes. These include syndicates, groups, pools, joint ventures, and other unincorporated organizations through which any business, financial operation, or venture is carried on and which is not classified for

federal

EXECUTIVE PHYSICAL EXAMS AND HEALTH SAVINGS ACCOUNT ISSUES Answer: Yes, health care reform may affect executive physical programs. Such programs typically provide for a comprehensive annual exam that includes more diagnostic tests than a standard well-adult visit. For example, in addition to a physical exam and standard lab tests, an executive physical might include an electrocardiogram,

visual acuity

CAN PARTNERS DEDUCT BUSINESS EXPENSES THEY AREN'T The deduction can be described as “unreimbursed partnership business expenses.”. Of course, if the expenses in question are for meals or entertainment, only 50 percent of the costs can be deducted on Schedule E. The partner should also include the deductible amount as an expense for self-employment tax purposes on his or her Schedule SE.

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial WHAT YOU NEED TO KNOW ABOUT 529 PLAN WITHDRAWALS Since the $12,000 of adjusted qualified education expenses are only one-third of the 529 withdrawal, only one-third of the withdrawn earnings, or $2,000, is tax free. The remaining $4,000 is taxable and should be reported on the miscellaneous income line of Ben’s Form 1040. Depending on Ben’s overall tax situation and whether the

Kiddie Tax

HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if TAX PLANNING FOR PAYMENTS TO BUY OUT AN EXITING PARTNER The Basic Tax Rules. Payments made by a partnership to liquidate (or buy out) an exiting partner’s entire interest are covered by Section 736 of the Internal Revenue Code. This is also true of payments made by the partnership to liquidate the entire interest of a deceased partner’s successor in interest (usually the estate or surviving

spouse).

SENDING COBRA NOTICES TO QUALIFIED BENEFICIARIES Call the home or cellular telephone number last given by the qualified beneficiary. Check with co-workers of the former employee if the qualifying event was a termination of employment. And, of course, if the qualified beneficiary contacts you about not receiving the notice, get current contact information and send the notice again. HOW A PUBLIC CHARITY IS DEFINED UNDER SEC. 509(A)(2) How a Public Charity is Defined Under Sec. 509 (a) (2) The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509 (a) (1) and 509 (a) (2). The characteristics of an (a) (1) public charity were discussed in previous articles. This article focuses on (a) (2) public charities LOW INTEREST RATES FAVOR CHARITABLE LEAD TRUSTS For those who are charitably inclined, the current low interest rate environment tends to favor charitable lead trusts over their better-known cousins, charitable remainder trusts. With a charitable remainder trust (CRT), a donor transfers assets into a trust with annual payments to you or your designated noncharitable beneficiary. This payment may be in the formRead more › MUST JOINT ACTIVITIES BE TREATED AS PARTNERSHIPS? According to the Internal Revenue Code, some arrangements between several taxpayers must be classified as partnerships for tax purposes. These include syndicates, groups, pools, joint ventures, and other unincorporated organizations through which any business, financial operation, or venture is carried on and which is not classified for

federal

EXECUTIVE PHYSICAL EXAMS AND HEALTH SAVINGS ACCOUNT ISSUES Answer: Yes, health care reform may affect executive physical programs. Such programs typically provide for a comprehensive annual exam that includes more diagnostic tests than a standard well-adult visit. For example, in addition to a physical exam and standard lab tests, an executive physical might include an electrocardiogram,

visual acuity

CAN PARTNERS DEDUCT BUSINESS EXPENSES THEY AREN'T The deduction can be described as “unreimbursed partnership business expenses.”. Of course, if the expenses in question are for meals or entertainment, only 50 percent of the costs can be deducted on Schedule E. The partner should also include the deductible amount as an expense for self-employment tax purposes on his or her Schedule SE.

GRF CPAS & ADVISORS

What We Do. Our CPAs are experienced in conducting audits, reviews and compilations for businesses and nonprofits of all sizes. Our skilled CPAs are experts at all types of tax including individual, business, nonprofit and international. We handle all of your financial 2021 RELEASE 2 HIGHLIGHTS: HEIGHTENED VISIBILITY AND Release 2 is now live for 2021. We’re excited to bring you this feature-packed update with new functionality that delivers heightened visibility and flexibility across Sage Intacct. A few of the exciting highlights include: Saving time reconciling with matching rule automation Efficiently managing the close process with improved checklists and visibility into close status GainingRead more › UPDATE ON GOVERNMENT ASSISTANCE: PPP, SVOG AND ERC Economic conditions continue to challenge businesses and nonprofits alike in 2021. Fortunately, there are still opportunities for organizations to take advantage of federal government programs for assistance. SBA and Treasury continue to issue new rules regarding eligibility and deadlines, but organizations should be vigilant if they plan to take advantage of these programs. Paycheck VIC.AI TRANSFORMS APPROVAL MANAGEMENT WITH GROUND-BREAKING Vic.ai, the AI (artificial intelligence) platform for accounting productivity, recently announced a brand new feature, Autonomous Approval Flows — introducing a first-of-its-kind approval matrix that streamlines the previously inefficient and error-prone approval process. The pairing of Vic.ai’s existing Autopilot feature and Autonomous Approval Flows allows both invoice and approval HOW AI AUTOMATES APPROVALS FOR SMALL-AND MEDIUM-SIZED For small and medium-sized business, automating approvals can be difficult since there are usually no efficient systems in place for handling approvals in the first place. Inherent Problems with Manual Approvals If you don’t have a technology platform that can receive, extract, and understand incoming costs, a human needs to step into that role. TheRead more › IRS CLARIFIES TAX TREATMENT OF EXPENSES PAID WITH PPP Last week in Rev. Rule 2020-27 and Rev. Proc. 2020-51, the IRS clarified that PPP borrowers who have not yet received forgiveness but have “a reasonable expectation of reimbursement” as of the end of the tax year cannot deduct expenses paid for with the loan in 2020. For borrowers with denied or partially denied loans who want to claim YEAR-END STRATEGIES TO REDUCE ADJUSTED GROSS INCOME Consider these last-minute tax planning strategies: Sell loser securities held in taxable brokerage firm accounts. The losses can offset earlier gains in such accounts. This will also help higher-income taxpayers reduce their exposure to the 3.8% net investment income tax (NIIT). Gift soon-to-be-sold appreciated securities to family members. HOW TO STRUCTURE A BUSINESS ASSET PURCHASE WITH TAXES IN Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if HOW C CORPORATIONS CAN PASS THE REASONABLE COMPENSATION As long as such payments pass the reasonable compensation test, they can be used to reduce the corporation’s annual taxable income to zero — or at least to $100,000 or less, where the corporation’s average federal income tax rate is far below the current 28%, 33%, 35% and 39.6% marginal federal rates that typically apply at the DO I HAVE TO ALLOW GRANDPARENT VISITS AFTER MY DIVORCE Depending on the state, grandparents may not be able to file for visitation rights while the grandchild’s parents are married. But there are exceptions, such as: 1. The parents are living separately. 2. A parent’s whereabouts are unknown (and have been for at least a

month). 3.

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