Essential insights into Generally Accepted Accounting Principles (GAAP), financial statement preparation, and professional bookkeeping. Discover guides for maintaining financial transparency and business health.
How did OBBBA expand the §4960 excise tax on nonprofit executive compensation? Internal Revenue Code §4960 imposes a 21% excise tax on a tax-exempt organization’s “excess remuneration” — compensation over $1 million paid to a covered employee — plus certain excess parachute (separation) payments. Under the One, Big, Beautiful Bill Act, beginning with tax years…
What are the most important federal tax developments from late May 2026? Four stand out. (1) The Joint Committee on Taxation released a 341-page provision-by-provision report on the One, Big, Beautiful Bill Act (OBBBA, P.L. 119-21) and flagged 10 provisions that may need technical correction. (2) Treasury and the IRS issued new guidance — final…
How did OBBBA change federal student loans for graduate and professional students? The One, Big, Beautiful Bill Act (OBBBA, Pub. L. No. 119-21) placed new caps on federal student loans and directed the U.S. Department of Education (DOE) to define which “professional degree” programs qualify for higher borrowing limits. Under the DOE’s final rule, only…
What is the generation-skipping transfer (GST) tax, and why do ILITs so often get it wrong? The GST tax (Internal Revenue Code Chapter 13) is a flat 40% tax imposed — on top of gift or estate tax — on transfers that “skip” a generation, such as gifts to grandchildren or to a dynasty trust….
What home expenses can you actually deduct in 2026 — and what’s the new SALT cap? To deduct homeownership expenses you must ITEMIZE. The two main deductible items are (1) state and local real estate taxes — now subject to a $40,000 limit ($20,000 if married filing separately) under the increased SALT deduction cap —…
Which Form 990 must your nonprofit file, and what happens if you miss it? Most tax-exempt organizations must file an annual return in the Form 990 series, due by the 15th day of the 5th month after the organization’s accounting period ends (May 15 for calendar-year filers). Which form you file — 990-N, 990-EZ, 990,…
What is a Trump Account and how do you open one? A Trump Account is a new type of tax-advantaged individual retirement account for children, created by the One, Big, Beautiful Bill (OBBBA, enacted July 4, 2025). A parent, guardian, or other authorized individual can establish one for a child who is under age 18…
Do states follow the federal QSBS exclusion under OBBBA — and why does state conformity matter? Not automatically. The One Big Beautiful Bill Act (OBBBA, Pub. L. No. 119-21) expanded the federal Qualified Small Business Stock (QSBS) exclusion under IRC §1202 — but states set their own conformity. Maine and Oregon have enacted legislation DECOUPLING…
What is the ISSB global baseline for sustainability disclosure, and why does it matter in 2026? The International Sustainability Standards Board (ISSB) — established by the IFRS Foundation — issued IFRS S1 (general sustainability-related financial disclosures) and IFRS S2 (climate-related disclosures) as a global baseline for how companies report sustainability information to investors. By 2026,…
How should companies account for transferable tax credits under U.S. GAAP? The Financial Accounting Standards Board (FASB) voted in May 2026 to advance a project on the accounting treatment of nonrefundable transferable tax credits — including the Inflation Reduction Act (IRA) clean energy credits under IRC §6418, CHIPS and Science Act semiconductor credits, and One…
