Articles From Lumsden McCormick

As year-end approaches, individuals must prepare to review their 2025 tax situation. Our annual year-end guide highlights key opportunities and important updates that can lower tax liability and strengthen long-term financial planning.

View the 2025 Exempt Conference resources here.

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.

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.

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.

The One Big Beautiful Bill Act introduces a 100% first-year depreciation deduction for nonresidential real estate classified as Qualified Production Property (QPP), offering significant tax savings for manufacturers. To qualify, properties must meet strict usage and timing requirements, and businesses should be aware of limitations such as nonqualified areas, leased buildings, and potential recapture rules. Careful planning and IRS guidance will be essential to maximize this benefit.

As 2025 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages.