An asset’s basis is its original purchase price, which determines how much tax will be owed when the asset is sold. When an asset is inherited, the so-called stepped-up basis resets this value to the asset’s fair market value at the time of the owner’s death. For example, if a family home was purchased for…
Real estate valuations have garnered increased attention in tax reporting over the last several years, driven by fluctuations in property prices and heightened oversight around how those values are reported. Whether a property is held for personal or operational use, an investment, or development, how it’s valued can directly impact taxable income, balance sheets, and…
Owning a successful business is often more than just a financial asset; it’s a culmination of hard work and dedication. It’s about carrying forward a legacy. Succession planning is the art of ensuring this legacy continues beyond the founding generation, yet many businesses struggle to prepare adequately for this stage. In fact, a recent PwC…
Congress began creating tax incentives for purchasing energy efficient vehicles in 2005, and the Inflation Reduction Act passed in 2022 brought major expansion to the electric vehicle (EV) tax credit program. The Trump tax reform bill passed in July 2025 has ended the federal EV credit for any vehicles purchased after September 30, 2025. For…
Most state business filing agencies like the Arizona Corporation Commission (ACC) are ministerial entities only and have no regulatory or enforcement authority. In other words, these government entities can make sure any documents you file meet filing requirements, but that’s where their responsibility stops. For example, ACC does not have a requirement to confirm or…
On July 4, 2025, Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law. At the center of the bill is the extension of many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) slated to end at the end of 2025. The OBBBA makes many expiring provisions of TCJA permanent,…
The One Big Beautiful Bill Act (OBBBA) significantly impacts the tax treatment for businesses of research and development (R&D) expense and bonus depreciation. These new provisions offer substantial benefits and crucial planning opportunities for businesses looking to invest and innovate. Following is a breakdown of the key changes. R&D expensing: Immediate Deductions Restored Internal Revenue…
If you listen to public radio, you have probably heard an announcement that programming is supported by an organization such as the Jane Doe Private Foundation or the Smith Family Foundation. If, on the other hand, you have personally made a donation to support public radio, you have donated to a public charity. What is…
In a way, IRS Form 990 consists of two separate tax returns. The first is the “numbers” section (discussed in part I of this article) where organizations report their income and expenses for the year. In the second, organizations report how they comply with the many federal rules and regulations that govern the existence of…
One of the appeals of establishing a nonprofit organization is that these organizations are generally exempt from paying one or more types of tax. But just because an entity is exempt from one type of tax does not mean it is exempt from all taxes. In my work with Arizona nonprofit organizations, one common question…