Articles From Lumsden McCormick

The Trump administration's policies could significantly impact U.S. manufacturers, particularly in the areas of tariffs and trade policies, the Tax Cuts and Jobs Act (TCJA), and clean energy tax incentives. Manufacturers need to stay informed about these rapidly changing policies to navigate their impact on business.

The evaluation of an S Corporation for a new business venture highlights several advantages. Shareholders benefit from limited liability for corporate debts, and early losses can be deducted on personal tax returns. Additionally, the Qualified Business Income deduction offers potential tax benefits.

Recent developments from the U.S. Supreme Court have significant implications for nonprofit organizations that rely on federal funding.

Filing a gift tax return, even when no tax is due, can be beneficial as it starts the clock on the statute of limitations, limiting the IRS to three years to challenge the gift's valuation. Adequate disclosure in the return can prevent future disputes and provide peace of mind.

Nonprofit organizations can reduce expenses without cutting staff by investing in technology, leveraging partnerships and shared services, and optimizing business operations and vendor contracts. Additionally, focusing on employee development, utilizing volunteers, and implementing eco-friendly practices can lead to significant cost savings while maintaining the organization's mission and morale.

The Tax Cuts and Jobs Act introduced Section 163(j), limiting business interest expense deductions. Businesses can manage this limit by opting out for certain industries, capitalizing interest expenses, or reducing overall interest expenses.

The National Institutes of Health (NIH) has announced a major policy change that will significantly impact universities, research institutions, and nonprofits receiving federal research funding (Research Institutions).

Estate planning is essential for single and child-free individuals to ensure their final wishes are respected and their assets are distributed according to their preferences. It allows them to specify beneficiaries, appoint trusted individuals to manage finances and medical decisions if incapacitated, and employ strategies to reduce gift and estate taxes.

Understanding the profitability of each product is essential for manufacturers to make strategic decisions and optimize production, marketing, and pricing strategies. By analyzing product-specific costs and profit margins, manufacturers can focus on the most profitable products and make informed financial decisions.

In a significant development affecting federal funding, the Office of Management and Budget (OMB) issued Memorandum M-25-13 on January 27, 2025, directing a temporary suspension of obligations and disbursements of federal financial assistance.