PBMares Accounting Blog

Nick Preusch, JD, LLM, MSA, CPA

Recent Posts

How the Proposed Tax Plan May Affect Non-Profit Organizations - New Excise Tax on Private Universities

Posted by Nick Preusch, JD, LLM, MSA, CPA on Nov 16, 2017 12:15:41 PM

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Topics: Not-for-Profits, Tax Updates

How the Proposed Tax Plan May Affect Individuals Ability to Receive Tax Incentives for Charitable Deductions

Posted by Nick Preusch, JD, LLM, MSA, CPA on Nov 6, 2017 3:49:36 PM

The House Ways and Means Committee have released its first bill of the "Tax Cuts and Jobs Act." The 429 page proposed bill is the first look at the committee's proposed tax changes. There is still a long road until there is an actual bill passed by Congress. The bill still requires a vote in the House. The Senate then will attempt to pass a similar bill. Once both bills are passed, it will need to go through a process known as reconciliation where the House and Senate create a joint bill that will go to the President's desk for signature.

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Topics: Not-for-Profits, Tax Updates

Renting Dorm Rooms for Additional Funding

Posted by Nick Preusch, JD, LLM, MSA, CPA on Sep 11, 2017 10:59:25 AM

Fox Business recently ran an article on a creative way non-for-profit universities have been raising funds. (See the article here). As a basic summary, universities have started renting out dorm rooms to people in order to raise additional funds to support the university. These creative ways to raise additional revenues come as enrollment numbers and state financing have been declining. With these creative fund raising ideas, non-for-profits need to be aware of unrelated business income and what effects these rules could have on their non-for-profit.

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Topics: Not-for-Profits, Tax Updates

Public Student Loan Forgiveness - A Great Way to Attract Employees to a Not-For-Profit

Posted by Nick Preusch, JD, LLM, MSA, CPA on Jun 5, 2017 1:44:38 PM

In 2007, President George Bush signed into law the Public Student Loan Forgiveness Program. This program allows people working in certain industries to have their student loans forgiven, tax-free, after 10 years. Usually people believe this program only applies to governmental employees. However, the law allows for employees of a 501(c)(3) not-for-profit to also qualify for student loan forgiveness. This is a great way to attract employees who may otherwise require a larger salary and a great way to keep employees at your not-for-profit.

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Topics: Not-for-Profits, Tax Planning

Turning next year’s tax refund into cash in your pocket now

Posted by Nick Preusch, JD, LLM, MSA, CPA on May 19, 2017 10:19:56 AM

Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.

Fortunately, there is a way to begin collecting your 2017 refund now: You can review the amounts you’re having withheld and/or what estimated tax payments you’re making, and adjust them to keep more money in your pocket during the year.

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Topics: Tax Bites, Tax Planning

Executive Order Changes For the IRS Will Enforce Political Speech Made by 501(c)(3)s

Posted by Nick Preusch, JD, LLM, MSA, CPA on May 11, 2017 8:30:00 AM

President Trump signed the Promoting Free Speech and Religious Liberty Executive Order on May 4, 2017. This Executive Order requests that the Treasury and IRS no longer enforce the Johnson Amendment, which does not allow 501(c)(3) tax exempt organizations to engage in certain types of political activities.

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Topics: Not-for-Profits, Tax Updates

Increasing The Standard Deduction Will Decrease Charitable Giving

Posted by Nick Preusch, JD, LLM, MSA, CPA on Feb 1, 2017 8:23:00 AM

For tax year 2014, there were 43,965,083 individual tax returns filed that itemized deductions on Schedule A.  The total amount of itemized deductions in 2014 were $1,206,705,085.  Deductions relating to charitable cash contributions were $155,455,063 and other than cash contributions were $65,330,485.

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Topics: Not-for-Profits, Tax Updates, Path Act

UBIT - Fairs as Fundraisers

Posted by Nick Preusch, JD, LLM, MSA, CPA on Mar 1, 2016 9:13:00 AM

On October 30, 2015, the IRS released Public Letter Ruling 201544025.
In the PLR, M was a non-for-profit alumni association relating to a two-year community college that runs a weekly public fair-type exhibition. M does not charge an admittance fee to the fair.
In order to raise money, any person wishing to sell at the weekly fair must submit an application for vendor space and pay an application fee along with a pace fee. There is also an ATM available at the fair, which M receives $1.50 for each transaction run through the ATM.
Section 513(a) provides that the term “unrelated trade or business” means any trade or business the conduct of which is not substantially related (aside from the need of such organization for income) to the exercise or performance by such organization of its charitable, educational, or other purpose constituting the basis for its exemption under § 501. In this case, the IRS believes M's income from the fair is not related to its exempt organization.
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Topics: Not-for-Profits, UBIT, Fundraising

What Everybody Ought To Know About The New Tax Increase Prevention Act

Posted by Nick Preusch, JD, LLM, MSA, CPA on Dec 23, 2014 10:00:00 AM

On Tuesday, Congress passed the Tax Increase Prevention Act, also known as the tax extenders. The President is expected to sign the Act in the next couple of days. The Act extends several key tax breaks to tax year 2014 for individuals and businesses that were available in 2013.

The Act also creates a new tax-free savings account for persons with disabilities to manage costs of medical, housing, transportation and education expenses. These accounts also help people who are on Medicaid and SSI to save more money without interfering with any of their benefits.

Some of the major tax breaks included in the Act include:

  • Individuals

  • Businesses

  • Energy Tax Credits

  • Penalties

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Topics: Tax Updates