Articles From Lumsden McCormick

As public companies prepare for year-end, a proactive and integrated tax strategy is essential for optimizing cash flow, reducing risk, and ensuring transparent financial communication with stakeholders. This guide highlights key areas that corporate tax and finance leaders should evaluate before the close of the fiscal year.

Pairing a living trust with a pour-over will create a comprehensive estate plan that ensures all assets are managed and distributed according to your wishes. The living trust streamlines transfers and avoids probate for most assets, while the pour-over will act as a safety net for anything left out, maintaining consistency and privacy. Together, they offer flexibility, reduce stress for loved ones, and help prevent costly delays.

Taxes play a critical role in the success of mergers and acquisitions, influencing both deal structure and financial outcomes. Whether a transaction is structured as an asset sale or a stock sale can significantly impact tax liabilities for buyers and sellers. Understanding these implications early helps avoid surprises and ensures a more strategic, tax-efficient deal.

Planning your funeral and memorial arrangements in advance can ease emotional and financial stress for your loved ones. By documenting your preferences and considering payment options—such as prepaid plans or a payable-on-death account—you ensure your wishes are honored and incorporated into your estate plan. Thoughtful preparation today provides clarity and peace of mind for your family.

Successful fundraising events should balance enjoyment with profitability. Start by setting realistic financial goals, create a detailed budget, and look for cost-saving opportunities without compromising quality. Secure strategic sponsors and follow the 30% rule to ensure expenses don’t exceed 30% of net proceeds, making your event both impactful and financially sustainable.

Succession planning is critical for manufacturing business owners who want to protect their company’s future. By defining goals, choosing the right ownership transfer strategy, and preparing successors through training and mentorship, you can ensure a smooth leadership transition and preserve your legacy. Starting early gives your successors time to learn, build relationships, and maintain operational stability long after you step away.

The One Big Beautiful Bill Act introduces a 100% first-year depreciation deduction for nonresidential real estate classified as Qualified Production Property (QPP), offering significant tax savings for manufacturers. To qualify, properties must meet strict usage and timing requirements, and businesses should be aware of limitations such as nonqualified areas, leased buildings, and potential recapture rules. Careful planning and IRS guidance will be essential to maximize this benefit.

As 2025 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages.

A QTIP trust is an estate planning tool designed to provide financial security for a surviving spouse while preserving assets for designated beneficiaries, such as children from a prior marriage. It offers flexibility and potential estate tax benefits by deferring taxes until the second spouse’s death. This approach helps blended families achieve fairness and clarity in their long-term plans.

Business gift deductions are generally capped at $25 per recipient per year, but exceptions exist for gifts to companies, couples, and incidental costs like packaging or shipping. Employee gifts follow different rules: cash or gift cards count as taxable wages, while small noncash items may qualify as tax-free fringe benefits. Accurate documentation of gift details and business purpose is essential to maximize deductions and remain compliant.