Articles From Lumsden McCormick

To enhance the efficiency and effectiveness of nonprofit board meetings, several strategies are recommended. These include planning actionable agendas, providing adequate resources, prioritizing key issues, and more to optimize the time and energy of both leadership and board members. 

The One, Big, Beautiful Bill Act, a new bill in Congress, proposes significant changes to business tax breaks, including restoring 100% bonus depreciation, increasing Section 179 expensing limits, and making the Qualified Business Income deduction permanent. These changes aim to provide substantial tax relief and flexibility for business owners, encouraging investment and innovation. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

Capital planning is a critical component of management for governments and public institutions. Here, we break down the capital planning process into four parts.

The proposed federal tax legislation aims to simplify the tax code, reduce rates for individuals and businesses, and eliminate certain deductions and credits. The bill also seeks to increase the standard deduction and expand tax credits for families, while ensuring that the changes are revenue-neutral over the long term. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

Nonprofits can effectively manage their revenue sources by diversifying their funding streams and implementing strategic financial planning. This approach helps ensure financial stability and sustainability, allowing organizations to better achieve their missions and serve their communities.

Owners of small manufacturing businesses structured as S corporations must ensure they receive reasonable compensation for their work to comply with IRS rules. While distributions can offer tax advantages, they must follow fair salary payments based on the owner’s role, responsibilities, and industry standards. The IRS evaluates compensation by analyzing how business income is generated and expects thorough documentation to support salary decisions, especially when owners perform multiple roles within the company.

As we reach the midpoint of 2025, small and mid-size governments in New York State are navigating significant changes to their accounting and financial reporting practices, driven by recent Governmental Accounting Standards Board (GASB) pronouncements.

Maryland's fiscal 2026 budget introduces a 3% sales tax on data and IT services, along with new tax brackets and increased rates for high-income earners. The budget also raises taxes on cannabis, sports betting, and vehicle excise, while proposals to reduce corporate tax rates and repeal inheritance tax were not included.

Business travel during the summer can offer valuable tax deduction opportunities if the trip is primarily for business purposes and involves an overnight stay. Deductible expenses may include transportation, lodging, meals (at 50%), and other business-related costs, while personal and entertainment expenses remain non-deductible.  Proper documentation and a clear separation of business and personal travel expenses are essential to ensure compliance and maximize tax benefits.

Asset protection is an important aspect of your overall financial picture, especially in today’s litigious society. Without proper planning, you risk losing significant portions of wealth to lawsuits or creditor claims, which could undermine years of financial progress and affect your heirs' futures.