CPA Client Bulletin - June 2018

DERMODY, BURKE & BROWN, CPAS, LLC - SYRACUSE

Dermody, Burke & Brown is currently seeking a full-time Administrative Assistant for our tax processing department. A good candidate for the position must have the knowledge of principles and practices of organization, planning, records management, and general administration. This candidate must be a dependable team player with a professional attitude and the ability to multi-task in a fast paced, deadline-driven environment.

Responsibilities Include:

Changes to NFP Reporting Standard Pt. 6

(May, 2018)

In our last thought leadership article relating to the Financial Accounting Standards Board’s ASU 2016-14’s “Presentation of Financial Statements of Not-for-Profit (NFP) Entities” we began the discussion about the new expense reporting requirement.  All NFPs will be required to present an analysis of expenses by both function and nature in one location.  That location can be either as a separate Statement of Functional Expenses within the financial statements themselves, as a table presented in the footnotes, or the information can even be incorporated in

Understanding the New Qualified Business Income Deduction

(May, 2018)

The highly publicized Tax Cuts and Jobs Act (TCJA) signed into law on December 22, 2017 had a rippling effect that changed, or modified, almost every area of the Internal Revenue Code (IRC). One of the more taxpayer-friendly provisions of the TCJA was the creation of a new IRC Section 199A which allows up to a 20% deduction for "Qualified Business Income" (QBI) from pass-through entities such as partnerships, S Corporations, as well as sole proprietorships.  The new deduction is allowed for tax years beginning on or after January 1, 2018 through December 31, 2025.

Beyond the Numbers: David de Silva Appointed as Chairman of the State Board Committee of the Board of Examiners

(May, 2018)

David de Silva, CPA and Member/Owner at Dermody, Burke & Brown, CPAs, LLC, was appointed as Chairman of the State Board Committee (SBC) of the Board of Examiners (BOE). 

Business Interest Expense Limitations

(May, 2018)

The Tax Cuts and Jobs Act made major changes to just about every aspect of the tax code.  No one taxpayer (individual, corporation or sole proprietor) was unaffected by the changes.  Some of the changes will have a positive impact on taxpayers, i.e. lower tax rates, and some of the changes will not be as positive, i.e. eliminated or reduced deductions.

CPA Client Bulletin - May 3018

Changes to NFP Reporting Standard Pt. 5

(May, 2018)

The next component of the Financial Accounting Standards Board’s ASU 2016-14’s “Presentation of Financial Statements of Not-for-Profit (NFP) Entities” relates to the new expense reporting requirement.  Although not new to Voluntary Health and Welfare Organizations who have been required to present a Statement of Functional Expenses, the new guidance mandates that all NFP organizations present an analysis of expenses by both function and nature in one location.  That location can be either as a separate Statement of Functional Expenses within the financial statements themsel

Changes to NFP Reporting Standard Pt. 4

(May, 2018)

The Financial Accounting Standards Board (FASB) is striving for increased transparency so that readers of NFP financial statements will be able to tell how an organization is managing its financial resources and whether they will be able to fund its operational activities over the next 12 months.  NFPs will now be required to provide both qualitative and quantitative information about liquidity and availability of resources. 

Farmers to Reap Benefits from Provisions of the Tax Cuts and Jobs Act (TCJA)

(May, 2018)

There is often uneasiness regarding the unknown surrounding tax reform.  Business owners are left wondering if changes will impact them in a positive way.  It appears that changes made by the recent passing of the TCJA may create better opportunities for farmers.  Some of these changes are listed below.

Depreciation

Depreciation is one area of the recent tax law changes that provide farmers multiple tax planning opportunities.  

Pages