Internal Revenue Code

However, there comes a time when this activity becomes more than a hobby and under US tax laws and regulations is considered a business. But, how can you tell if what you’re doing is no longer a hobby, but a business instead? As defined by the Internal Revenue Services, IRS, a hobby is an activity not executed with the hopes of making a profit. To determine the status of your activity, taxpayers are advised to follow appropriate guidelines to avoid misfiling an activity considered a business…

Taxes are an integral part of any economy. As a responsible Bronx Tax Payer, you are supposed to pay your taxes and file your returns on time. While these are important exercises, most people consider this to be a formality or a burden hence do not understand the intricacies of the process and things related to it. Did you know that as a tax payer, there are certain rights that you have? Paying taxes is not only a duty but it also comes with some benefits and rights that you as a responsible…

preparation of financial statements. The terms fair market value and fair value are typically used in business-owner buy-sell agreements without proper consideration of the confusion these terms can cause. Fair market value is defined by the Internal Revenue Service as the price at which a property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable…

Sole Proprietorship A sole proprietor is a business owned by a person. This person will file his or her business taxes using Schedule C while filing form 1040. For a charitable contribution, it will not be filed on the person’s Schedule C it will be taken as a deduction on his or her personal taxes. The taxpayer would file a Schedule A. However, the caveat for this would be if the individual does not have enough deductions to itemize and must take the standard deduction. Then the person…

As a pastor, my father has fairly complex taxes. Since he lives in a parsonage, he doesn’t rent nor own a house, he is considered by the IRS ‘self-employed’, and has an odd system of taxes. Considering his tax layout, I thought he would be an interesting interviewee for this assignment. Throughout the interview, it was clear he would prefer if the government would limit its spending, and pay it more directly to better causes. The first question was, “What percent of your total income do you pay…

Excise taxes started to be implemented on some of the organization for breaking the no substantial lobbying rule in 1987. This was due to the fact that congress concluded that the revocation of tax exemption for excessive lobbying was an ineffective deterrent in some cases. This was due to some charitable organization that raised money from tax deductible contributions under the 501 (c) (3) tax exemption for a substantial lobbing effort and then just ceased operation. The organizations were…

Depreciation Adjustments The Internal Revenue Service of the United States allows companies to take advantage of bonus depreciation and section 179 depreciation. Bonus depreciation accelerates depreciation on qualifying property in the first years of service to maximize savings for a business. The percentage of bonus depreciation has fluctuated over the years since its creation in 2002; however, the next four years have been determined through the Protecting Americans from Tax Hikes (PATH) Act…

vulnerability are revenues, costs of sales, and gross profit. A major concern when reviewing the income statement is revenue manipulation. Revenue decreased from $22,138 million to $16,702 million between 2017 and 2018, a 24.6% difference. Revenue is one of the company’s largest accounts; therefore, it is susceptible to material…

Francis Maher, Executive Director, introduced auditors Yee Lee McGee and Aaron Edmark from Gary McGee & Co. They provided a comprehensive overview of the three draft financial audit documents that were distributed to each Board member. Ms. McGee said the audit went very well this year, and she thanked St. Mary’s staff for assisting in a smooth audit process. She added there are no further open items to close and pending the outcome of this meeting, the final audit documents would be prepared.…

What levels of reporting and monitoring exist? Every month they have a close meeting that involves members from leadership, accounting and finance. During the meeting they review monthly financial reports that include hospital volume, spent amount, revenue and accounts receivable. There are many levels of reporting and monitoring such as daily, weekly and monthly filing reports along with status reporting. They monitor these reports by working closely with manager to make sure the reports are…