Articles From Lumsden McCormick

Understanding whether you qualify as a tax-favored real estate professional can significantly impact your ability to deduct rental losses. Here we explain the general rules, exceptions, and criteria that define this status, including the eligibility criteria and material participation tests. We also highlight other exceptions for non-professionals and emphasizes the importance of utilizing available tax breaks to maximize deductions and minimize tax liability.

Facing budget cuts? Learn practical, cost-saving strategies to help government agencies maintain essential services and maximize efficiency amid federal funding uncertainties.

Stepped-up basis rules can significantly reduce capital gains tax for heirs by adjusting the tax basis of inherited assets to their fair market value at the time of the original owner's death. This means that only the appreciation in value since the date of death is subject to tax, rather than the entire gain from when the asset was originally acquired.

Vendor fraud poses a significant risk to manufacturing companies, impacting their profitability and product quality. Recognizing the warning signs and implementing strict controls can help companies protect themselves from deceptive practices and maintain the integrity of their operations.

Small businesses can ensure payroll tax compliance by staying updated with regulatory changes, understanding federal withholding, adhering to filing and deposit deadlines, maintaining organized records, and seeking professional advice. These practices help avoid fines, maintain good employee relationships, and stay legally compliant.

Incentive trusts are estate planning tools that distribute wealth based on beneficiaries meeting specific conditions, such as pursuing education, maintaining employment, or avoiding harmful behaviors. While they can encourage positive actions, it's important to set realistic guidelines and communicate clearly with trustees to avoid potential conflicts or unintended consequences.

The strategies for transferring business ownership include family transfers, trusts, employee buyouts, ESOPs, and sales to outside buyers. Each option is analyzed for its tax consequences, such as gift tax, estate tax, capital gains tax, and corporate deductions, providing a comprehensive guide to succession planning.

When inheriting a family home, siblings may face challenges due to differing financial needs and opinions on what to do with the property. Options include sharing the home, renting it out, selling it, or arranging a buyout, each with its own considerations and potential tax implications. Open communication and professional advice are crucial to navigate the emotional and legal complexities involved.

Effective grant management is critical for organizations to ensure compliance, financial integrity, and operational efficiency.

Nonprofit board members must closely monitor their organization's financial health, especially during times of economic uncertainty. Key warning signs include unexplained financial variances, unusual spending patterns, and inconsistent financial statements. Identifying and addressing these issues is crucial to maintaining the nonprofit's ability to fund essential programs and continue operating.