Articles From Lumsden McCormick

View the 2025 Exempt Conference resources here.

The gift tax annual exclusion lets you give up to $19,000 per recipient in 2025 (and 2026) tax-free, helping reduce your estate tax liability. Married couples can double this amount through split gifts, but remember the deadline is December 31 and certain gifts require IRS reporting. For larger gifts, you can use your lifetime exemption, and some payments—like tuition or medical expenses made directly—are always tax-free.

Correctly classifying workers as employees or independent contractors is critical for nonprofits. While contractors can reduce costs and administrative burdens, misclassification can lead to significant financial penalties, back taxes, and compliance issues. With shifting federal standards and varying state rules, nonprofits must stay informed and review classification practices regularly.

Mark your calendars; the long-awaited revisions to the 2018 Yellow Book will take effect December 15, 2025. The changes were released in early 2024, but soon they will be the standard that government auditing is held to.

Proactive planning is essential for private companies in the year-end planning period. Understanding evolving tax regulations is essential in order to optimize cash flow, mitigate risk, and position companies for the year ahead. 

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.