When it comes to tax time, maximizing your business deductions is paramount. Here are some tips for depreciation, amortization, and Section 179 rules. What is the Difference Between Depreciation and Amortization? Depreciation and amortization are accounting terms that refer to the allocation of the cost of an asset over its useful life. However, they are…
This depreciation asset class typically includes assets that have a useful life of between 5 and 7 years, and are typically considered to be intermediate-term assets. They are depreciated over a period of 5 to 7 years for tax purposes. Examples of assets that may qualify for this depreciation class include: Office equipment, including items…
Business entities with pass-through taxation, such as an S Corp, LLC, sole proprietorship, or partnership, do not retain losses within the business entity. They are passed through to owners on their personal tax returns. But business owners are not the only ones who can cash in on income or record losses. Individuals can do it…
A private foundation may be an appropriate option if you want to make a lasting impact on a specific cause, involve your family or a small group of individuals in your philanthropy, and enjoy greater control and decision-making power over your activities. However, it’s important to carefully consider the responsibilities and requirements associated with establishing…
If you have a passion for a particular cause and want to make a difference by addressing a specific need in your community or the world, you might want to start a public charity. Starting a public charity can be a way to channel your energy and resources into something that you believe in and…
The primary goal of a public charity is not to generate revenue, but to serve the public good by addressing social and community issues. Public charities are often formed with a specific mission in mind, such as providing education, promoting health, alleviating poverty, or protecting the environment. They rely on the generosity of donors to…
Private (family) foundations are established and funded by individuals or families. They are typically focused on a specific cause or area of interest, such as education, health, or the arts. They are usually smaller in scale than public foundations, and are often established to provide a way for families to pool their resources and achieve…
Foundations are organizations that aim to achieve a specific goal, often related to charitable or philanthropic causes. There are two main types of foundations: Public foundations and Private (family) foundations. Both have different goals, structures, and funding sources, which impact how they operate and what they are able to achieve. According to Eric Sheldon, CPA,…
Fiduciary accounting is the process of recording and reporting the transactions and activities of a trust, estate, or conservatorship. This is done in the normal course of administration, but it can also be required by a court order. Fiduciaries owe many legal duties to the beneficiaries of a trust, estate, or conservatorship. A breach of…
If you are the beneficiary of a trust, you may be able to challenge the Trustee’s accounting. It can be a messy, expensive and time-consuming process. Taking advantage of an attorney’s expertise can help you to navigate these tricky waters. In the course of administering a trust, fiduciaries are held to the highest accountability standards….
