You have a mission that you are passionate about fulfilling, and you have decided to start a nonprofit organization to do just that. One of the first measures to undertake toward achieving that goal is the selection of the initial Board of Directors for the organization. While this may be only the first of many steps that must be taken in legally forming the organization, it is arguably the most important and should not be taken lightly. The decision of who to place on the founding Board must be made after careful consideration of each potential candidate’s unique set of knowledge, skills, and abilities.
In my experience, most founders of grassroots nonprofits are compelled to select members of their family as their trustees. At first glance this method makes sense. When thinking of those individuals that can be trusted to control your organization, most would immediately lean on family. Unfortunately, if you’d like the organization to qualify as a public charity under IRC section 501(c)(3) you must look beyond family members and seek out members of the general public to provide governance.
A primary concern in Board selection is avoidance of partiality. Most would assume that members of the same family will vote in accordance with one another, without first taking into consideration the effects on public interest. This is the principal reason why the IRS requires 51% of a nonprofit Board to be comprised of “disinterested” parties. Disinterested individuals are those who have no relationship with any other Board member, and who do not receive compensation from the organization for any reason. (Keep in mind that your Board should be primarily a volunteer group anyway.)
When looking to the public to make your Board selections, there are several things you’ll want to keep in mind:
Knowledge- Each member of the Board should be familiar with appropriate, ethical governance practices. Select individuals who have knowledge and experience in the nonprofit sector and who have demonstrated mindfulness for compliance.
Skills- Members of the Board should be able to contribute something to operations. Select individuals who have skills in accounting, law, or business administration. You’ll also want individuals with experience in your specific activities. For example, if you are an educational program you may want a teacher or school administrator on your Board.
Resources- Individuals who have good resources in the community are essential on your Board. Select individuals who have contacts in local legislature, with large corporations, or who have relationships with private individuals who may be potential donors.
Character- Nonprofits must observe the highest standards in order to retain the trust of the donating public and the confidence of those they seek to help. The board provides the public face of the organization, and its behavior, and that of individual board members must be exemplary.
Passion- The organization’s mission should guide every decision the board makes and thus each member of the Board should be able to articulate and demonstrate a real passion for it and encourage their fellow trustees to show the same commitment.
Establishing a Board who will provide excellent oversight of organizational operations while also representing a cross section of your community is essential. If careful consideration is made before every Board election, your organization will succeed in creating public trust and value.
The United States government is very much known for its strictness and seriousness in collecting taxes. That is why almost all citizens of the nation are making sure their tax is filed properly, correctly and on time. There are instances when a taxpayer is fined and charged for discrepancies and inaccuracies in tax preparations. No matter how an individual gets careful and righteous in filing of taxes, there are inevitable occurrences and conditions that would at times prevent filing of accurate and correct taxes. That is why it is wise to invest in TurboTax software.
What is TurboTax software? To begin with, TurboTax is a computer program that is developed, designed and marketed to assist users for correct, proper and accurate preparations of individual and small to medium sized business taxes. Using the software is ensuring that there is organization and accuracy in the tax preparation process. TurboTax software is a complete and an all-in-one software package designed to help users get on with the stressful tax preparation procedures.
Intuit Incorporated
TurboTax software is one of the flagship and banner computer program packages and products from the technology firm Intuit Inc. The company is an all-American software firm that has been in the market for quite some time as a developer of reliable tax preparation and financial computer applications. Intuit is catering to hundreds of thousands of clients, who include among all, accountants, individuals and small to medium sized businesses.
As an Intuit product, TurboTax software is well known for its usefulness and reliability. Intuit makes sure all users and consumers of its TurboTax software would be satisfied with the product’s basic services and uses. Product reviews and recommendations from experts assert and testify that indeed, TurboTax software is one of the reasons why the company stands mighty and proud.
The origin of TurboTax software
Not too many people know that TurboTax software was not originally developed and created by Intuit Corp. The computer program was created and developed by a San Diego, California-based Chipsoft, which was bought by Intuit in 1993. The acquisition gave Intuit access and rights to take the TurboTax software business. In return, Chipsoft became an Intuit unit, now known to many in the name of Intuit Consumer Tax Group.
The acquisition has proved to be a viable and lucrative one. Sales figures for TurboTax software have been rising tremendously and almost uncontrollably. TurboTax software has indeed risen from just a mere Chipsoft product to become one of larger Intuit’s banner software products available in the broadening market.
As a guidance
As mentioned, TurboTax software is basically functioning as an effective guide in the step-by-step procedure of tax preparation and filing. It is a common knowledge that tax returns preparation is most of the time tedious and stressful. With the help of TurboTax software, taxpayers would be more organized and systematic in the filing of taxes. As a result, accuracy is ensured, to the advantage of the taxpayer.
If you are planning to purchase a unit of TurboTax software, you should know that the price you would be investing is very much commensurate and practical when the overall usefulness of the computer program is accounted for. Thus, investing in a TurboTax software is most of the time considered a must and a helpful endeavor.
No wonder why the US government, particularly the US Internal Revenue Service, is recommending and endorsing the use of TurboTax software. If you want to make your tax preparation as accurate and convenient as possible, go get your copy of TurboTax software.
The ultimate objective of a Will is to give effect to the Will maker’s intentions. In other words, who gets what when I die!
In addition to the distribution of assets, a Will also covers certain other matters such as the appointment of executors, trustees and guardians of minors, the payment of debts and duties, trustee powers and duties and other provisions which will assist in the fulfilment of your wishes.
Some people may question the need for a Will and instead prefer to rely upon the rules of intestacy succession to dispose of their estates. Intestacy is a statutory method of distributing an estate in the event that someone dies without a valid Will.
If you die without a Will, the process of intestate applications are generally more complex. The statutory provisions do not take into account any particular wishes or circumstances of the person who has passed. Unless, of course, the intention is that the partner and the children take all of the property in exactly the manner in which the provisions of the Wills Probate and Administration Act dictates.
However, even this intention can be affected since the entitlement of a de facto spouse on intestacy has arisen under the Wills Probate and Administration Act. This may result in the exclusion of the rights of a surviving spouse, leaving the spouse to his or her rights under the Family Provision Act 1982. For the surviving spouse to pursue their rights under the Act involves not only Court application costs, but also the cost of time and expense.
There are many sound reasons for a Will to be made. Fundamentally, a Will permits you to dispose of your property as you wish.
Having made a Will it is important that you review it regularly to determine whether it has been affected by any changes in your circumstances or intention. This becomes particularly essential when large value assets such as property or shares are acquired or disposed of. In the event that you pass away and your Will does not reflect your current assets, it can result in an unnecessary expenditure of both time and money, as well as emotional strain on your family and loved ones. Some people choose to review and update their Will on an annual basis.
It is the role of the solicitor to ensure that your Will reflects your wishes and to do so they must obtain a complete list of your assets, the nature of their ownership, their values and any effects upon them. This knowledge will help to ensure that your Will reflects your true intentions.
If you would like advice regarding the preparation or amendment of your Will or for more information regarding and Will or Estate matters please contact Quinn Lawyers on 1300 QUINNS or click here to complete our online enquiry form.
Vehicles used and operated to provide services to the public are considered common carriers. Trains and taxis are examples of common carriers, which offer its services to the public by transporting them or their goods from one place to another. In order to operate, common carriers must first obtain a license from the state and adhere to regulations and policies imposed by law.
All vehicles are expected by the state to exercise care and caution while on the road. But unlike personal vehicles which are only required to observe ordinary diligence while in transit, common carriers are obliged by the state to observe extraordinary diligence or utmost degree of care and diligence while transporting their passengers and goods. Naturally, they must employ higher degree of care because their duty involves public policy.
Furthermore, when ordinary vehicles get involve on road accidents, the parties must first prove the negligence of the other party, or their non-participation thereto. On the other hand, common carriers are presumed by law to have acted negligently whenever they take part therein. The reason for this presumption is the so-called Contract of Carriage. Whenever a passenger or a shipper agrees to avail the services of a common carrier, there creates a special contract between them, which obligates the latter to transport the goods and passenger safely from one point to the other.
But this presumption is subject to the following exceptions:
1. Fortuitous causes or acts which are inevitable and outside the control of the parties
2. Acts of Public Enemies
3. Acts of the Passenger
4. Defective goods
In addition, Common Carrier operators are required by State Law to possess professional driver’s licenses in order to ensure the safety of the goods and the passengers. Yet, a large number of operators still do not observe proper traffic rules and regulations.
Being a major urban center, Taxicabs are common carriers being used in Los Angeles, California today. Because the city has a large number of inhabitants, L.A. streets are swamped with taxis and other vehicles.
However, due to the city’s large population, heavy traffic and road conditions, accidents caused by taxicabs are highly probable.
Whenever an accident occurs, especially if it involves a taxi or common carrier, it is important to discuss it with a Taxi Accident Lawyer. An attorney who handles Taxi Accidents would be able to help you determine which party to the accident is at fault and who to collect damages from.
Depending on the circumstances of the case, it may be one, some or all of the following:
1. The Common Carrier Owners – are presumed liable because they are expected to exercise extra-ordinary diligence in choosing their employees and in maintaining their carriers. However, they may present evidence to the contrary.
2. The Common Carrier Operators – are presumed liable because under the Contract of Carriage, they must transport the goods and passengers to their place of destination safely and unharmed. They may also present evidence in their favor.
3. The Passenger – may be liable if his action or omission is the proximate cause of the accident. His negligence may be total or contributory.
4. The Shipper – may be liable if due to his action or omission, the goods are damaged while being transported by the common carrier. His negligence may be total or contributory.
5. The Pedestrian – may be liable if due to his disregard of pedestrian rules, the taxi got involved in an accident. His negligence may be total or contributory.
6. The other vehicle – may be liable if it can be shown that his action or omission caused the accident. His negligence may be total or contributory.
7. The City Government – may be liable for poor road conditions and unclear or missing road signs.
The following is a comparison of the two primary accounting methods (Cash method and Accrual method) used to calculate taxable income for U.S. Federal income taxes. According to the Internal Revenue Tax Code, a taxpayer may compute taxable income using any of the following methods of accounting:
The cash receipts and disbursements method;
An accrual method;
Any other method permitted by the chapter; or
Any combination of the foregoing methods permitted under regulations prescribed by the Secretary.
A taxpayer must compute taxable income using the same accounting method he uses to compute income in keeping his books; also, the taxpayer must maintain a consistent method of accounting from year to year. Should he or she change from the cash method to the accrual method (or vice versa), they must notify and secure the consent of the Secretary.
Cash method
Cash method taxpayers include income when it is received, and claim deductions when expenses are paid. A cash method taxpayer can look to the doctrine of constructive receipt and the doctrine of cash equivalence to help determine when income is received. There are three types of taxpayers that cannot use the cash method: (1) C corporations; (2) partnerships with at least one C corporation partner; and (3) tax shelters.
Accrual method
Accrual method taxpayers include items when they are earned and claim deductions when expenses are owed. An accrual method taxpayer looks to the all-events test and earlier-of test to determine when income is earned. Under the all-events test, an accrual method taxpayer generally must include income “for the taxable year when all the events have occurred that fix the right to receive income and the amount of the income can be determined with reasonable accuracy.
Under the “earlier-of test,” an accrual method taxpayer receives income when (1) the required performance occurs, (2) payment therefore is due, or (3) payment therefore is made, whichever happens earliest. Under the “earlier-of test” outlined in Revenue Ruling 74-607, an accrual method taxpayer may be treated as a cash method taxpayer when payment is received before the required performance and before the payment is actually due. An accrual method taxpayer generally can claim a deduction in the taxable year in which all the events have occurred that establish the fact of the liability, the amount of the liability can be determined with reasonable accuracy, and economic performance has occurred with respect to the liability.
The History
Originally, federal law required all taxpayers to use the cash method of accounting. However, many businesses used the accrual method, as most generally accepted accounting principles (”GAAP”) were based thereon, and objected to the new law. Less than a year after the 1913 Revenue Act, the IRS allowed use of the accrual method for deductions, then for income, and in 1916, Congress formally adopted the accrual method into U.S. tax law.
Read more about what is FASB and other accounting information.
Seems the new 2008 housing bill was not a savior for all of us – like a scorpion there is a little kick in the tail! However, struggling home owners can breathe easy, the kick is not directed at them, in fact, it is aimed at real estate investors.
Whoever it is aimed at in the real estate market, it will not give the realty world a much needed boost as it is yet another deterrent to buying a home, this time aimed at investors.
Capital gains tax is always part of the profit and loss formula when investing in realty, and the levels were generously high for both investors and regular residents who live in their home. Residents still have the same concessions but now it has changed for investors.
To re-cap on the capital gains that was – and still is for residents owning one house in which they are living and have lived for two years: the allowance on capital gains is $250,000 for a single person and $500,000 for a married couple.
Capital gains taxation is only charged on the profit made on the sale of the house, which is usually not necessarily on the actual sale price of the house.
However, there is a marked change in the taxation laws for people who buy a home and rent it for a while and then move into the home for a two year period prior to selling it.
It used to be possible to sell the home and convert all the profits that were made when it was a rental into tax free income under the capital gains umbrella. The new law has changed all that.
Even though investors may have lived in the rental home for two years before selling it, their capital gains allowance is no longer sacred. The new law says it must be calculated pro-rata and is divided between the taxable years that it was a rental property and the non taxable years when the owner lived in it.
This new rule comes into effect on January 1st 2009 and this is a hypothetical example of how it might look. You buy a home in June 2009 for $400,000 and you rent it out for three years, live in it for two years and sell it in June 2014 for $700,000. (Dream on!)
This means that you have a capital gain of $300,000 (assuming that nothing can be used as tax write-offs). Under the old system you could be exempted from capital gains tax by using your single person’s allowance of $250,000 capital gains exemption. This means that you would have only had to pay capital gains tax on the last $50,000.
This no longer applies; now the tax department will tell you that yes, you may claim the capital gains exemption for the two years that you were actually living in the residence i.e. you can claim two fifths of the $300,000 profit against your own personal allowance of $250,000. This calculates into $120,000.
However, for the other three years -when it was a rental property – the capital gains tax is applicable. Therefore, you will pay the percentage rate of capital gains tax on the remaining $180,000 (three fifths) of the profit of $300,000 that you made when you sold the house.
PorchLight Real Estate Group combines local market knowledge with cutting edge marketing skills. For more information on Denver CO real estate or to do a search for Cherry Creek real estate, visit us online at PorchLightGroup.com.
There are a range of reasons that business owners may need to consider re-structuring their business. If:
* Your business is experiencing cash flow problems;
* Your creditors are demanding payment of outstanding accounts and threatening legal action;
* You’re finding it hard to remain within your overdraft limit;
* Your bank is making demands;
* You have inherited company liabilities as a result of personal guarantees provided;
* You are unable to make payments to the ATO on time
then you may need to look at restructuring your business as a method of getting it back on its feet and heading in the right direction.
Taking action to get a distressed business back on track is generally the best option for all involved. Following a comprehensive independent review of the business, if it is deemed that restructuring is a viable option the next step is to determine which particular restructuring components best suit the individual situation. Some possible options include restructuring the business, the disposal of some divisions/assets that are not performing well or possible refinancing.
The range of areas that a business restructure can affect reach far and wide. Such areas can include control of the business, asset protection planning, capital gains tax, stamp duty, income tax, GST, land tax, payroll tax, estate planning and succession issues. Depending on the individual situation this can have either be a positive or a negative effect.
Specific examples include that if a sole trader or partnership decides to incorporate, under certain conditions, they may be eligible to deduct, over five years, costs incurred by them in relation to the incorporation such as legal, search or lodgement fees. On the flip side, another entity may be liable for stamp duty on the transfer of assets, capital gains tax and possible loss of tax benefits that the current business structure is eligible for.
It is said there are two types of expertise that are required in order to implement a successful restructure, traditional and contemporary. A knowledge of traditional legal and accounting practices is necessary in order to address areas such as taxation, the rights and shares of owners and the ownership of various types of assets.
Additionally, an up-to-date, working knowledge of the modern business arena is needed to aid the development of modern business models, as well as to improve workflow management and online business and leverage with third parties. This contemporary expertise assists many businesses to operate cheaper, faster and better than their competitors.
As has been demonstrated, there are many issues to be aware of when looking to restructure a business, which is why it is extremely important to enlist the help of professional lawyers and accountants.
At The Quinn Group the highly qualified team of both accountants and lawyers are well equipped to assist you with your business restructuring needs. Having all your needs met by one firm ensures timely and cost effective solutions for you business. Contact us on 1300 QUINNS or click here to email your enquiry.
Bold>Things To Keep In Mind When You Hire A Chicago Tax Attorneys
Hiring the right A Tax Attorney In Chicago for your personal or business IRS tax issues is important. Getting good tax help can translate into money for your bottom line. Your goal should be to form a long-term relationship with Tax Attorneys In Chicago so you have someone to call any time you need. Because this individual is so important to your future and will help relieve certain stress throughout the tax year. Be sure to take the time to learn about the different types of tax professionals and how their particular expertise can help you.
Anyone can claim to be a Tax Attorneys In Chicago and anyone in Chicago who prepares your tax returns does not have to be licensed by the IRS to do it, so be careful when choosing a A Tax Attorney In Chicago.
Whatever type of Tax Attorneys In Chicago you hire make sure that they have specific knowledge and experience in your area of business or specific IRS tax debt problem.
RSS FEED