Articles From Lumsden McCormick

Work-in-Process (WIP) refers to partially completed goods in the manufacturing process, encompassing costs of raw materials, labor, and overhead. Monitoring WIP helps identify production inefficiencies, optimize processes, and manage inventory effectively.

In 2025, both new and used heavy SUVs, pickups, and vans can offer significant first-year depreciation write-offs if used more than 50% for business purposes. Additionally, setting up a home office can further enhance tax savings by allowing you to qualify for home office deductions, making it easier to pass the over-50%-business-use test for your heavy vehicle.

Estate planning for individuals living outside the United States involves understanding domicile and residency, navigating tax implications, and considering asset location and jurisdiction. It also requires awareness of marital deduction rules, succession laws, and the importance of professional advice to ensure a comprehensive and compliant estate plan.

A federated nonprofit organization is a network of independent entities that operate under a common mission and brand, allowing for both autonomy and collaboration. This structure offers benefits such as scalability, increased fundraising potential, and enhanced advocacy, making it an attractive option for nonprofits looking to expand their reach and impact.

Section 1231 of the Internal Revenue Code governs the tax treatment of gains and losses from the sale of specific business properties. Gains from Section 1231 assets can be treated as long-term capital gains, while losses can be treated as ordinary losses, providing favorable tax outcomes. However, the nonrecaptured Section 1231 loss rule can affect the timing and treatment of these gains and losses.

The IRS in the past year has continued to ramp up its scrutiny of partnerships’ tax positions, including several pieces of new guidance taking a multiprong approach to partnership “basis shifting” transactions that the agency views as having the potential for abuse. At the same time, IRS is dedicating new funding and resources to examining partnerships. 

Choosing a guardian for your child involves designating someone in a legally valid legal document who can take on the responsibility if you pass away or become incapacitated. It's important to select a trustworthy person with the necessary time and resources, and to consider the child's best interests, including their living arrangements and relationship with the guardian.

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from targeted groups facing significant barriers to employment. The credit can be as much as $2,400 per eligible employee. To qualify, employers must complete a pre-screening notice and file Form 8850.

An advance health care directive allows you to outline your medical care preferences in case you become incapacitated. This document is a crucial part of your estate plan, ensuring that your health care decisions are respected and followed. It includes directives like a health care power of attorney, living will, and DNR/DNI orders, which can be tailored to your specific needs and state laws.

Exit agreements are essential for nonprofit organizations to manage leadership transitions smoothly and fairly. These agreements, developed by the board of directors, outline the terms of a leader's departure, focusing on compensation and the ongoing relationship with the organization.