PBMares Accounting Blog

Eliminating the Concept of Extraordinary Items

Posted by Theresa Leon, CPA, MPA on Oct 5, 2017 9:12:08 AM

Determining whether an event or an item was an extraordinary item has been a confusing and often burdensome determination for accountants and entities alike.  Over the years, an item could be argued for and against the consideration to be treated as an extraordinary item.  For example, Hurricane Katrina caused terrible damage and one might consider such an event would be an extraordinary item.  However, a hurricane in and of itself is not considered to be unusual or infrequent in nature as hurricanes are a likely event.  Although the damage was by the hurricane was catastrophic, it was not deemed and did not meet the requirements to be considered extraordinary.  An extraordinary item was previously considered to be an item that was unusual and infrequent in nature.  The gain or loss on these items was to be shown segregated from the results of ordinary operations on the statement of activities, net of any tax.  In addition, the extraordinary item was to be disclosed in the accompanying notes to the financial statements describing the origin, nature and the amount.

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Topics: Not-for-Profits, Tax Planning

Trump Tax Reform Plan: How It May Affect You and Your Company

Posted by Daniel L. Chenoweth, MPA, CPA on Sep 29, 2017 3:56:45 PM

One of the topics talked about all year is how our tax system needs to be greatly improved and just this week, President Trump and Republican Leaders released how they think it could be fixed.  

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Topics: Tax Planning

The Equifax Data Breach: Protect You and Your Company from Identity Theft

Posted by Harvey Johnson, CPA, CGMA on Sep 13, 2017 2:17:34 PM

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Topics: Tax Planning, Cybersecurity Threat

Now Is the Time to Pay Back Taxes to Virginia!

Posted by Lori Roberts, CPA on Sep 6, 2017 4:47:13 PM

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Topics: Tax Planning, SALT

Look-Back Interest on Long-Term Construction Contracts

Posted by Daniel L. Chenoweth, MPA, CPA on Aug 29, 2017 8:59:45 AM

If you are a construction contractor reporting long-term contracts on the percentage of completion method (§460(b)(1)) you may be required to calculate look-back interest (§460(b)(2)) on your long term contracts.

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Topics: Tax Planning, Construction

Changes to Virginia Sales Tax effective as of July 1, 2017

Posted by Lori Roberts, CPA on Jul 17, 2017 8:00:00 AM

Each year the Virginia Legislature passes changes to the Virginia Tax Code that impacts residents and those doing business in Virginia. While many of the changes can seem mundane or minor, there are two that will have a significant impact on two segments of Virginia Business, automotive service centers and retailers and contractors selling and installing tangible personal property. Both will likely require changes to POS retail and accounting systems in order to administer properly.

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Topics: Tax Planning, Construction

You don’t have to take business insurance costs sitting down

Posted by J. Denise Short on Jul 13, 2017 1:42:53 PM

Adequate insurance coverage is, in many cases, a legal requirement for a business. Even if it’s not for your company, proper coverage remains a risk management imperative. But that doesn’t mean you have to take high insurance costs sitting down.

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Topics: Tax Bites, Tax Planning

Does Your Charitable Contribution Qualify for a Deduction?

Posted by Theresa Leon, CPA, MPA on Jul 7, 2017 9:00:00 AM

When it comes to preparing individual tax returns, many individuals wonder what kind of documentation they need to support their charitable contributions.  First and foremost, to qualify for a charitable contribution deduction, a contribution must have been given to a qualified charitable organization.  The Internal Revenue Service (IRS) website contains a link in to search for exempt organizations (https://www.irs.gov/charities-non-profits/search-for-charities).  Donations given to directly to an individual in need are not considered a deductible contribution but instead are considered by the IRS to be personal gifts.  Secondly, an individual can only deduct contributions if they are itemizing their individual tax return.  Generally an individual may be able to deduct up to 50 percent of their adjusted gross income, however, there are limitations.  Seek advice regarding your individual deduction limitations from a tax professional. 

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Topics: Not-for-Profits, Tax Planning

Fine-tuning your company’s compensation strategy

Posted by Michael Kennison, CPA , CIT on Jul 6, 2017 11:33:01 AM

 

As a business evolves, so must its compensation strategy. Hopefully, your company is growing — perhaps adding employees or promoting staff members who are key to your success. But other things can spur the need to fine-tune your compensation strategy as well, such as economic changes or the rise of an intense competitor. A goal for many businesses is to provide equitable compensation.

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Topics: Tax Bites, Tax Planning

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