Articles From Lumsden McCormick

Recent changes to federal estate tax laws, including the permanent increase of the exemption to $15 million under the OBBB Act, mean fewer families will face estate tax liability. As a result, estate planning strategies are shifting toward minimizing income taxes for heirs, especially by considering whether to gift or retain appreciating assets.

Nonprofits facing financial shortfalls may be able to use income from their endowments to stabilize operations, provided the funds are unrestricted and spending aligns with legal guidelines like UPMIFA. A prudent spending policy, typically 4% - 7% of a rolling average, should account for inflation and aim to preserve the endowment’s principal for long-term sustainability.

The changes to the Qualified Business Income (QBI) deduction introduced by the OBBB aim to provide greater tax benefits for small business owners and self-employed individuals, making it easier for them to reduce their taxable income and save on taxes.

A letter of instruction is a simple yet powerful way to bring clarity, comfort, and compassion to your estate plan. It bridges the gap between legal formality and personal intention, ensuring your voice is heard.

The One Big Beautiful Bill  introduces major tax benefits for small businesses, including the permanent return of 100% first-year bonus depreciation for eligible assets placed in service after January 19, 2025. It also significantly increases Section 179 expensing limits and introduces new incentives for production-related real estate, offering substantial opportunities for tax savings and reinvestment.

Signed into law on July 4, 2025, the Reconciliation Bill—officially titled the One Big Beautiful Bill (OBBB)—introduces sweeping changes to the U.S. tax code.

Starting in 2026, nonprofits will face an expanded excise tax on compensation exceeding $1 million, which will apply to any employee, not just the top five earners. Donors will also see changes: nonitemizers can deduct up to $1,000 in charitable contributions, while itemizers must exceed a 0.5% AGI threshold to claim deductions, and corporations will face a 1% income floor for charitable deductions.

When deciding whether to give to charity now or later, it's important to weigh personal financial circumstances, tax implications, and the potential impact of your gift. Giving during your lifetime allows you to see the results of your generosity, while planned giving can ensure long-term support for causes you care about. Each approach offers unique benefits depending on your goals and legacy plans.

Nonprofits can host impactful meetings and events without overspending by making thoughtful choices around food, beverages, vendor contracts, and equipment. Strategic planning, early booking, and leveraging volunteers or in-kind donations can significantly reduce costs while still delivering a high-quality experience for attendees.

The One Big Beautiful Bill (OBBB) Act, signed into law on July 4, 2025, makes permanent several provisions from the Tax Cuts and Jobs Act while introducing new deductions, such as for tips and auto loan interest, and expanding the child tax credit. It also raises the standard deduction and estate tax exemption, but eliminates green energy credits and personal exemptions, reshaping tax planning for individuals.