Articles From Lumsden McCormick

The SECURE 2.0 Act has enhanced IRA Qualified Charitable Distributions (QCDs), allowing taxpayers aged 70½ and older to make direct contributions to qualified charities with increased annual limits and new opportunities through split-interest entities. These QCDs offer significant tax benefits, such as excluding the amount from taxable income and satisfying Required Minimum Distributions (RMDs). Nonprofits can boost donations by educating donors about these advantages and clearly communicating how their contributions will be utilized to support specific initiatives.

The journey from founding a company to successfully handing over the reins involves navigating a complex maze of financial, legal, and even emotional challenges.

We encourage you to listen to the recording of this insightful session, which delves into the complexities of ownership transfer whether you are planning to sell your business, pass it on to the next generation, or transition to a new leadership team, this recording will provide you with critical strategies to ensure a smooth and successful transfer. 

A Charitable Remainder Trust (CRT) allows individuals to achieve two estate planning goals: providing income to beneficiaries and leaving assets to charity, all while receiving potential tax benefits. With options like CRATs and CRUTs, a CRT offers flexibility in payouts and contributions. However, it’s an irrevocable decision, so careful planning is essential.

Nonprofit leaders must implement clear credit card policies to prevent staff from misusing work-issued cards. This includes defining who needs a card, outlining rules for usage, and ensuring proper oversight by supervisors. By establishing clear guidelines and consequences, nonprofits can protect themselves from financial misuse and legal complications.

Businesses offering employee health coverage may be required to comply with federal reporting obligations under the Affordable Care Act (ACA). Companies with 50 or more full-time employees must file Forms 1094-C and 1095-C to report health coverage details and determine compliance with employer mandate provisions. Employers with fewer than 50 full-time employees are generally exempt from these requirements.

The role of an executor involves significant responsibilities, including filing the will and initiating the probate process, identifying and managing the deceased’s assets, and ensuring all debts and final expenses are paid. Executors must also file the decedent's final tax returns and distribute remaining assets to beneficiaries according to the will. Acting as a fiduciary, the executor must maintain detailed records and act in the best interests of the estate, making it essential to seek professional guidance, such as from a CPA, to navigate this complex process effectively.

Manufacturers can control labor-related costs, such as workers’ compensation and unemployment insurance, by implementing safety programs and strategically managing hiring practices. Accurate employee classification, return-to-work programs, and challenging invalid unemployment claims are key strategies to reduce premiums and tax rates. Taking these steps can lead to better financial stability and increased profitability.

As the fourth quarter of 2024 approaches, business owners must be aware of key tax deadlines, including filing returns, making estimated tax payments, and contributing to retirement plans. Missing these important dates can result in penalties or interest charges. This article highlights the most critical deadlines and filing requirements to help ensure businesses stay compliant.

This article discusses the risks of using a holographic will, illustrated by the legal dispute over Aretha Franklin’s estate. Although Michigan permits handwritten wills without witnesses, they can lead to conflicts and challenges due to ambiguous language or incomplete provisions.  New York State does not accept holographic wills as a legal document.