Make A Payment Client Portal Contact
Let's Talk

Gross Mendelsohn Blog

A resource to help business owners, nonprofit executives and high net worth families preserve wealth, grow and thrive.

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Inflation Reduction Act of 2022: Key Highlights

President Joe Biden recently signed the Inflation Reduction Act of 2022 into law. The new legislation intends to curb inflation by decreasing the amount of money the government spends, imposing new streams of revenue and lowering both healthcare and energy bills for Americans. The 755-page bill has three major provisions. So, to help break it down, let’s take a look at these key provisions and see what each entails.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Journal Entries to Account for Operating Leases Under the New Lease Standard

The new lease accounting standard is effective for private companies and nonprofits for fiscal years beginning after December 15, 2021. This new accounting rule requires organizations to report their operating leases on the balance sheet. This will require some new journal entries. Is your organization ready? To help accounting teams at businesses and nonprofits, here are some of the basic journal entries you’ll need to use to account for operating leases under the new lease standard.

Read More
Gross Mendelsohn Blog

Get more articles like this one!

Subscribe to our blog, and we'll send articles straight to your inbox when they're published.

Blog Feature

Construction & Real Estate

Accounting for Common Area Maintenance Expenses

Common area maintenance (CAM) costs are expenses incurred by a landlord to maintain or manage common areas in places like shopping centers or office buildings. For example, a parking lot in a shopping center or the lobby in an office building requires periodic maintenance, which is shared by the tenants who utilize those areas. Commercial real estate managers with retail or office space almost always have CAM costs, and need to be aware of a significant new accounting rule that affects how they are reported.

Read More

Blog Feature

Business Valuation

Understanding the Company-Specific Risk Premium: A Guide for Attorneys

Whether it’s part of a contentious divorce hearing or to assist a client in selling their business, a valuation is extremely important in determining the value of a business. Understanding risk factors is essential in determining how a business will be valued. Let’s consider what your business-owning clients need to know about company-specific risks and how they come into play when it’s time for a business valuation.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

The Labor Crisis: Where Are All the Workers?

When I ask business owners about the challenges facing their business, there is one common theme that runs across all industries — the labor dilemma. By now, we have all experienced the effects of the “Great Resignation.” Local businesses have shortened operating hours, closed on certain days or reduced menu offerings because they simply cannot find enough workers. Some clothing retailers have even closed dressing rooms, citing being short-staffed as the reason. Where are all the workers?

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Late Filing Penalties to be Waived for Some Taxpayers

Certain late tax filers are about to see some relief. The IRS is abating the late filing penalties for various tax returns for 2019 and 2020 that were filed late or have not yet been filed. This announcement came on August 24, 2022, when the IRS issued Notice 2022-36. Let’s take a look at why penalties are being waived, which tax returns are affected and what you can expect next.

Read More

Blog Feature

Nonprofit

7 Tips for Nonprofits Implementing the New Lease Standard

After numerous delays, the new lease standard has arrived. Any nonprofit organization with at least one lease will be impacted for years beginning after December 15, 2021, which will generally be your nonprofit organization's accounting year end for the 2022 calendar year or possibly your fiscal year ending June 30, 2023. With some calling this the biggest accounting change of this generation, it's crucial that nonprofits be prepared for the new standard. That’s why we created a list of seven tips to help ensure your nonprofit is set up for success when implementing the new lease standard, also known as Accounting Standards Codification (ASC) 842, Leases.

Read More

Blog Feature

Business Valuation  |  Forensics & Litigation Support

How to Spot a Rigged Business Valuation

There are many instances when a business valuation report is needed in litigation. During a divorce, if one or both spouses own a business, it may be necessary for the business to be valued for asset distribution purposes. Each party may hire their own business valuation analyst to value the business, and each analyst may come back with very different conclusions as to the value of the business. While differences in value can often be the result of two analysts having justifiable differences of opinion, there sometimes can be something else going on. While most credentialed valuation analysts have high ethical standards, there are some unscrupulous “experts” who will purposefully “rig” their valuation report in order to achieve a desired result in favor of their client. So, how can you spot one of these “rigged” valuation reports?

Read More

Blog Feature

High Net Worth Families

Donor-Advised Funds Can Add Tax Benefits to Your Charitable Giving

Charitable giving is generally a component of a comprehensive tax or estate plan. Receiving a tax benefit for charitable donations used to be a straightforward exercise for taxpayers who itemized deductions. Taxpayers simply made a contribution to a charitable organization and included their donations on Schedule A, Itemized Deductions. Things got a little complicated, however, with the passage of the Tax Cuts and Jobs Act in 2017, when the standard deduction was increased and the deduction for state and local taxes was capped at $10,000. The result was a dramatic decrease in the number of taxpayers claiming itemized deductions, and a corresponding decrease in charitable donations due to the diminished tax benefit. Rest assured, there are still ways for philanthropically-minded taxpayers to squeeze tax benefits out of their charitable giving.

Read More

Blog Feature

Fresh Ideas  |  Nonprofit

Lisa Johnson, CPA, Gets Inspired by Child Focused Nonprofits

With a passion for serving child-focused nonprofits, Lisa Johnson’s enthusiasm for helping those organizations — both here at Gross Mendelsohn and in volunteer roles — is absolutely contagious. I sat down with Lisa to learn more about her nonprofit experience, what energizes her as a volunteer and board member, and the advice she has for nonprofit executive directors. Here's a recap of my chat with Lisa.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Maryland Raises Business Personal Property Tax Exemption

The Maryland State Department of Assessments and Taxation (SDAT) made business owners very happy as House Bill 268 (HB268) has officially taken effect. This legislation increases the exemption amount of personal property eligible to be taxed. The exemption has gone from $2,500 to $20,000 for businesses, and from $10,000 to $20,000 for at-home businesses. As an extension of legislation HB90, which exempts from personal property valuation and taxation if the total cost of the personal property was less than $2,500, this new legislation is said to save $44.2 million in taxes for 14,217 Maryland businesses by increasing the exemption limit to $20,000.

Read More

Blog Feature

Construction & Real Estate  |  High Net Worth Families

Section 1031 Like-Kind Exchanges Help Defer Capital Gains & Build Wealth

The like-kind exchange is one of the most money-savvy ways to defer capital gains taxes while building your long-term wealth. A 1031 exchange, which gets its name from Section 1031 of the Internal Revenue Code, can help you swap one investment property for another and defer capital gains taxes. These transactions are complicated, and they're riddled with rules that could make or break your investment. But they can be fruitful, as long as they are executed correctly. Let’s take a look at 1031 exchanges, how they work and their benefits.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

New Lease Standard: Tips for Implementation

The new lease standard is finally here and effective for all private companies and nonprofits for years beginning after December 15, 2021. After years of discussion and several delays, it’s important for private companies and nonprofits to start preparing for the new lease standard. That’s why we created a list of tips and best practices to get your organization headed down the right path toward a successful implementation of the new lease standard, also known as Accounting Standards Codification (ASC) 842, Leases.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Lease Accounting Software Options

In wake of the new lease accounting standards, Accounting Standards Codification (ASC) 842 and International Financial Report Standards (IFRS) 16, it’s important that you have the right technology in place to handle complicated lease situations and ensure that your organization is compliant. Many companies without a comprehensive lease management software rely on tedious manual processes, spreadsheets and disparate systems that are cumbersome and prone to errors. Thankfully, there are lease management solutions that can stand alone or seamlessly integrate with ERP systems to consolidate data, reduce inaccuracies and streamline everyday operations.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

New Lease Standard to Impact Any Business or Nonprofit With a Lease

Some are calling the new lease standard the biggest accounting change of this generation. While the accounting profession moved the goalposts on its effective date for years, the time is finally here for organizations to implement the sweeping changes brought about by FASB’s Accounting Standards Codification (ASC) 842, Leases. The changes that the new lease standard brings are substantial and can impact any business or nonprofit that has at least one lease. Here’s a brief rundown of what you need to know about this new accounting standard and how it will impact your organization’s financial statements.

Read More

Blog Feature

Construction & Real Estate  |  Manufacturing & Distribution  |  Service Businesses

Maryland Small Business Retirement Savings Program Set to Launch September 2022

It seems like ancient history, but back in 2016, Maryland passed a law requiring any covered employer (i.e., one that didn’t have its own retirement plan and used a payroll system or service) to participate in the Maryland Small Business Retirement Savings Program - MarylandSaves. The program was set to launch in 2020, but like with many things, COVID caused some delays. The implementation is now scheduled for September 2022, and we cover the details you need to know.

Read More

Blog Feature

Manufacturing & Distribution  |  Service Businesses

Bars and Restaurants Are Making the Move to a Manufacturing and Distribution Model

While nearly every industry was impacted by the COVID pandemic, one could argue that no sector took a beating like the hospitality industry. Government shutdowns and consumer hesitancy plagued bars and restaurants. Even in the post-pandemic recovery phase, many hospitality business owners are still struggling to stay afloat due to labor shortages and continued consumer hesitancy.

Read More

Blog Feature

Forensics & Litigation Support

5 Ways Attorneys Can Get Better Outcomes When Working with a Forensic Accountant

When I tell people that I’m a forensic accountant, they sometimes think of Christian Wolff, Ben Affleck’s character in the movie The Accountant. While it’s true that a forensic accountant can use their skills to investigate a company for potential embezzlement, the majority of cases they help attorneys with are far less glamorous.

Read More

Blog Feature

Construction & Real Estate  |  Fresh Ideas  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

5-Point Checklist for Managing Inflation In Your Business

With inflation running high, businesses everywhere are struggling to manage costs. Regardless of whether or not inflation is in check anytime soon, its effect on business revenue and savings requires planning and prioritizing now. We put together a checklist of potential ways you can manage the negative effects of inflation while identifying positive, long-term opportunities for your business.

Read More

Blog Feature

Nonprofit

5 Tips for Making Your Nonprofit Association's Audit Less Stressful

Many nonprofit associations get anxious in anticipation of their yearly audit, but there are ways you can make the process less stressful. Here are five tips from our audit team on how to take some of the stress out of your association’s yearly audit.

Read More

Blog Feature

Nonprofit

Using Internal Controls to Protect Your Nonprofit Association From Fraud

Internal controls are vital to protect your nonprofit association from fraud. While most leaders believe employees work at an organization as much for the mission as they do for the paycheck, sometimes that just isn’t the case.

Read More

Blog Feature

High Net Worth Families

Do You Have to Pay Tax on Student Loan Forgiveness?

Student loan forgiveness is getting substantial media attention, thanks to the Biden administration’s recent announcement that more than a half million borrowers will see their student debt balances wiped out automatically. This forgiveness cancels nearly $6 billion in federal student loans for 500,000+ former students of the now defunct Corinthian Colleges. All the recent chatter about student loan forgiveness, along with the mention of several exceptions, has many student loan borrowers wondering whether loan forgiveness is taxable.

Read More

Blog Feature

Construction & Real Estate  |  Manufacturing & Distribution  |  Service Businesses

New Virginia Law Affects Taxation of Pass-Through Entities

A new Virginia law allows the owners of a pass-through entity (PTE) to shift their income tax burden generated from the PTE away from them personally and instead to the PTE itself.

Read More

Blog Feature

Service Businesses

New Rules for Treatment of R&D Costs Could Impact Technology Companies

Certain provisions of the Tax Cuts and Jobs Act (TCJA) could have a significant impact on technology companies in 2022. Here’s what technology companies need to know about an amendment to Section 174 of the tax code that can affect taxable net income.

Read More

Blog Feature

Healthcare

Provider Relief Fund Reporting Requirements for Healthcare Providers

Healthcare providers who received funding from the Provider Relief Fund must report the use of funds to the Health Resources & Services Administration according to a specific reporting schedule. Here’s what healthcare providers need to know.

Read More

Blog Feature

Forensics & Litigation Support

Digital Assets and Equitable Distribution: A Guide for Family Law Attorneys

In dissolution of marriage cases, the valuation of marital property is necessary to ensure fair equitable distribution. But before values can be placed on marital property, the property first needs to be identified. As family law attorneys know, that process is more complicated than ever due to the rise of a new asset class: digital assets.

Read More

Blog Feature

Business Valuation  |  High Net Worth Families

Estate Planning Lessons from a Rock Star

When rock star Prince died on April 21, 2016, he didn’t have a will in place. This rather shocking scenario resulted in one of the most complicated probate hearings ever seen in Minnesota, Prince’s home state. Business owners and high net worth families alike can learn from Prince’s mistake by having a proper estate plan in place to minimize tax liability.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Maryland Unemployment Insurance Tax Rate Changes Explained [2022]

If your Maryland business is subject to unemployment insurance taxes, be aware of potential changes to your tax rate for the 2022 calendar year.

Read More

Blog Feature

Construction & Real Estate

What Construction Contractors Need to Know About Backlog

Backlog is an important measure of the health of a construction company. Here’s what contractors need to know about backlog and how it can help (or hurt) their profitability.

Read More

Blog Feature

Forensics & Litigation Support

Hidden Assets in Divorce

The personal and adversarial nature of divorce litigation is a potent combination that can cause emotions to run high, sometimes leading the parties to lash out and punish the other financially. This can take the form of deliberately wasting marital assets, but also concealing marital assets, which we will discuss here.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit

2022 Payroll Update

Social Security and Medicare tax As of January 1, 2022, the maximum amount of annual earnings subject to Social Security increases to $147,000 (from $142,800 in 2021). There is no limit on the amount of earnings subject to the Medicare tax.

Read More

Blog Feature

Manufacturing & Distribution

More Jobs for Marylanders Tax Credit Benefits Manufacturers and Other Businesses

Maryland manufacturers, as well as other businesses located in certain geographic areas, may be eligible for a potentially significant tax credit, but the application window closes soon. If you anticipate hiring employees in the first half of 2022 for your business, you can take advantage of the More Jobs for Marylanders Incentive Program. However, the program will close to new applicants on June 1, 2022, so you should get your application in now.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

Maryland Extends Deadline for Individual Income State Tax Returns to July 15, 2022

Yesterday, Maryland announced that the deadline for individual income state tax filings and payments will be extended from April 18, 2022 to July 15, 2022.

Read More

Blog Feature

Government Contractors

Establishing Rates for Government Contracts

If you’re a government contractor and a potential client asked you to fill a position, could you give them a rough price on the spot? What would you charge for that position? What if a fellow contractor who wants to team with you on a proposal asked, “What is your wrap rate?” Just like building a house, laying the foundation may seem like a simple part of the overall construction process, but it’s the most important part of the entire project and in government contracting, it starts with the chart of accounts.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors

5 Accounting Mistakes to Avoid if You Need a FAR Overhead Audit [Video]

There are several accounting mistakes that government contractors make that can cause major headaches when uncovered during their federal acquisition regulation overhead audit. Here are five of the most common.

Read More

Blog Feature

High Net Worth Families

Cryptocurrency FAQs: Answers from an Investment Advisor and a Tax Accountant

We get a lot of questions from clients about cryptocurrency. Whether you’re new to the cryptocurrency scene or already own it but don’t know exactly what to do with it, it’s important to know the tax and investment ramifications of it. That’s why we asked two members of our team — Charlie Monroe of our tax department and Steve Hannigan of GGM Wealth Advisors — to answer some common questions about cryptocurrency from both a tax and investment perspective.

Read More

Blog Feature

Nonprofit

How Nonprofit Associations Can Prepare for Their Next Audit

Many associations think there’s not much worse than going through a financial audit. Some see it as a “necessary evil,” while a mere few actually look forward to the auditors coming in to check the financial information, processes and controls.

Read More

Blog Feature

Construction & Real Estate  |  High Net Worth Families

Tax Benefits of Donating Real Estate

Most people know the tax benefits of making charitable donations in the form of cash, stocks and non-cash (goodwill). But donating real estate is something you might not have considered as part of your charitable giving plan. This article describes three different ways to donate real estate, and the tax benefits and nuances associated with each.

Read More

Blog Feature

Construction & Real Estate

How the Infrastructure Investment and Jobs Act Will Impact the Construction Industry

The Infrastructure Investment and Jobs Act (IIJA) gives the United States a generational investment in our nation’s infrastructure and competitiveness. According to the White House, this bipartisan infrastructure deal will rebuild America’s roads, bridges and rails, expand access to clean drinking water, and ensure every American has access to high-speed internet. The legislation is intended to help ease inflationary pressures and strengthen supply chains by making long overdue improvements for our nation’s ports, airports, rails and roads. Members of the construction industry largely applauded the bill's passage, saying it provides much-needed resources to modernize the country's aging and overburdened infrastructure. Let’s take a look at how the infrastructure legislation will affect construction contractors.

Read More

Blog Feature

Manufacturing & Distribution

How to Reduce Inventory Costs with a Just-in-Time Inventory System

Manufacturers and distributors need to have inventory available to ensure a steady flow of goods to producers and consumers. Selling inventory also keeps a steady flow of capital coming into your business. However, handling and storing materials can be costly.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Tax Provisions to Help Businesses Become More Accessible for Those with Disabilities

If your business is looking for ways to invest to increase accessibility for employees, customers and visitors with disabilities, there are two tax provisions that can help offset the cost of those expenses.

Read More

Blog Feature

Nonprofit

5 Form 990 Mistakes That Can Hurt Your Nonprofit’s Fundraising Efforts

Many nonprofits see IRS Federal Form 990 as an informational return that they send to the IRS every year, but in reality, the Form 990 is much more than that. Your organization’s 990 is open to public inspection, which means that your current and prospective donors may have access to at least the last three years of your organization’s 990s. Using the Form 990, donors can learn about your organization’s governance (or lack thereof), operations and programs.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Infrastructure Legislation Terminates ERTC

The Infrastructure Investment and Jobs Act was signed into law on November 15. While most of the legislation is related to investing in the nation’s infrastructure, there were a couple of tax provisions included in the bill. Here’s what you should know about two of those tax provisions: one affecting businesses and the other affecting brokers of cryptoassets.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

How to Report COVID-19 Employee Emergency Leave

If your business or nonprofit used the fully refundable tax credits to cover the cost of COVID-19-related emergency paid sick leave (EPSL) or expanded family and medical leave (EFML) for employees, there are new reporting requirements for W-2 reporting for 2021.

Read More

Blog Feature

Manufacturing & Distribution

Tax Credits for Maryland Manufacturers & Distributors

Between supply chain hurdles, labor shortages and the pandemic, it’s hard to turn a profit. That’s why it’s more important than ever to take advantage of every tax saving opportunity available to your business. Let’s look at some key tax credits for manufacturers and distributors.

Read More

Blog Feature

Business Valuation

Treatment of Non-Operating Assets and Liabilities In Business Valuation: Quick Guide for Attorneys

A reliable valuation is critical in many different contexts, including private sales, divorce, litigation and estate planning — just to name a few. A frequent challenge in valuing privately-owned businesses involves the treatment of non-operating assets and non-operating liabilities. Attorneys will benefit from having a basic understanding of these nuances of valuation, as they can have a significant impact on the conclusion of value. Let’s look at how the treatment of non-operating assets and non-operating liabilities can impact the value of a company.

Read More

Blog Feature

Business Valuation

Major Changes to Valuation Discounts on the Horizon

The Build Back Better Act (H.R. 5376) was introduced in the House of Representatives on September 27, 2021. If this bill is signed into law, it will have broad implications on estate planning, including changes to the unified credit, treatment of grantor trusts for tax purposes, and surcharges for high income estates and trusts. Let’s take a close look at those major changes.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

2021 Employee Benefit Plan Audits: Big Changes On the Way

Business entities that sponsor employee benefit plans, and plan administrators with the responsibility for regulatory compliance of their benefit plans should take note. There are significant changes coming for 2021 employee benefit plan audits that will include new requirements for plan sponsors.

Read More

Blog Feature

Construction & Real Estate

Everything Construction Contractors Need to Know About New Lease Accounting Standards [2022]

A new lease accounting standard for construction companies and contractors takes effect on December 15, 2021. This article covers the rules of the new standard and how your company can prepare.

Read More

Blog Feature

Healthcare

3 Financial & Occupancy Trends Maryland Skilled Nursing Facilities Should Know [2021]

There were several big financial and occupancy changes in Maryland’s skilled nursing industry due to COVID-19. This is especially evident in areas like occupancy percentages, overall costs per patient day and nursing costs. In this article, we’ll discuss why these three areas changed in 2020 and what the data looks like compared to prior years.

Read More

Blog Feature

Nonprofit

Top Charity Watchdogs Nonprofits Should Know

Charity watchdog sites are often resources that current and future donors (as well as volunteers and employees) rely on to evaluate a nonprofit. An optimized, up-to-date profile on a watchdog site can serve as a differentiator for your nonprofit, especially if a donor is deciding between two similar organizations. That’s why it’s so important for your nonprofit to know the information reported about your organization on watchdog sites. The following are among the most popular charity watchdog sites that nonprofits should know.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Quick Guide: Work Opportunity Tax Credit for Employers

The Work Opportunity Tax Credit is a long-standing tax benefit that encourages employers to hire employees from ten targeted groups facing barriers to employment.

Read More

Blog Feature

Service Businesses

Quick Guide for Breweries & Wineries: Accounting for Employee Tips

Who doesn’t love a good tip? If you have ever worked in hospitality, you know there is nothing better than a customer rewarding your service with a generous tip. For business owners on the other hand, tips can be challenging when it comes to accounting. So, allow us to share some “tips” on tips.

Read More

Blog Feature

Nonprofit

3 Common Nonprofit Management Letter Comments and How to Avoid Them

A primary responsibility of nonprofit directors and officers is to ensure that their organization is accountable for its programs and finances to contributors, its members, the general public and government regulators. 

Read More

Blog Feature

Healthcare

Additional $25.5 Billion in Relief Funds Available for Healthcare Providers

The U.S. Department of Health & Human Services (HHS) announced on September 10, 2021, that an additional $25.5 billion in COVID-19 relief funds will be made available to healthcare providers. Here’s what healthcare providers need to know and how they can apply for the relief.  

Read More

Blog Feature

Nonprofit

Private School Financial Reporting Mistakes: Donor Support [2022]

Donor support can have complex accounting requirements for private schools. This can lead to schools improperly recording certain types of donor support, which can result in misstatements or reclassifications. The following are just some of the most commonly overlooked or misstated areas of donor support in private school financial reporting.

Read More

Blog Feature

Forensics & Litigation Support

6 Common Questions Attorneys Have on Stock Options and Deferred Compensation in Divorce

When it comes to stock options and deferred compensation in divorce, attorneys typically have many questions. The division of assets in any divorce is often a complicated process, but when stock options are added to the mix, the work becomes all the more difficult. Let’s look at the questions attorneys ask most often — and the answers to each.

Read More

Blog Feature

High Net Worth Families

How to Prepare for the Future with an Estate Plan

While no one gets excited about estate planning, for your family's sake, it's important to make sure your plan is up to date. This article covers some of the important information I like to share with clients during the estate planning process.

Read More

Blog Feature

Construction & Real Estate  |  High Net Worth Families

Real Estate Investing: Passive vs Active Income

We get a lot of calls from people who want to start dabbling in real estate. While real estate can be a lucrative investment over time, those who want to dabble in real estate should be aware of how their investments will impact their taxes. If you are considering getting into real estate investing, there are a few key things you should know in order to increase your odds of making it a lucrative venture.

Read More

Blog Feature

Manufacturing & Distribution

4 Tax Saving Tips Maryland Manufacturers Need to Know

One challenge manufacturing businesses face year in and year out is taxes. Even with a good CPA working alongside them, no business owner looks forward to dealing with taxes, let alone paying a tax bill. The good news? There are tax breaks specifically designed for manufacturers to help lower your tax liability. We’re here to tell you about two tax credits and two tax exemptions that every manufacturer should know about.

Read More

Blog Feature

High Net Worth Families

What Parents and Grandparents Need to Know About Custodial Accounts

Parents and grandparents establish custodial accounts for children for various reasons. For example, grandma might want to set aside $10,000 for her granddaughter, or maybe Mom and Dad want a tax shelter for their child’s savings. However, many folks who establish custodial accounts fail to recognize these accounts have significant legal and tax implications.

Read More

Blog Feature

Government Contractors

Quick Guide: Vaccination and COVID-19 Testing Costs for Government Contractors

New mandates regarding COVID-19 vaccinations and mask requirements in federal buildings will mean big changes for government contractors.

Read More

Blog Feature

High Net Worth Families

Quick Guide: Maryland Student Loan Debt Relief Tax Credit

There's good news for Maryland residents who have incurred at least $20,000 in undergraduate and/or graduate student loan debt: you may be eligible for a Maryland tax credit.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

How to Apply for and Calculate PPP Loan Forgiveness

The Paycheck Protection Program (PPP) is in the forgiveness stage for most businesses. Here’s an overview on how to navigate the PPP loan forgiveness process.

Read More

Blog Feature

Nonprofit

7 Ways to Spice Up Your Nonprofit’s Board Meetings

You want board members who can contribute to your mission through their efforts, contacts or money. Stated simply, they need to have a passion for your mission. This ensures a level of interest that will help even if board members have different opinions on how to achieve the mission.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors

FAR Overhead Rates and Audits for A/E Firms – FAQs

If your architecture or engineering firm is looking into working on state department of transportation awards or other federally funded contracts, you may have heard the term “overhead rate” or “indirect cost rate.” Calculating a rate for the first time can seem daunting. No worries. We’re here to answer some FAQs related to FAR overhead rates and audits.

Read More

Blog Feature

Nonprofit

Does My Nonprofit Need D&O Insurance?

Hundreds of nonprofits face lawsuits every year, but many nonprofits assume they don’t need directors and officers (D&O) liability insurance. Unfortunately, if your nonprofit doesn’t have a D&O policy, your directors, staff and possibly even your volunteers may be at risk. D&O insurance protects your nonprofit from litigation related to negligence, wrongful termination and asset mismanagement.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Beginner’s Guide: Tax Implications for Remote Employees

Remote employees can complicate taxes for businesses. In most cases, having a remote employee creates nexus or the obligation to file tax returns and pay taxes in the local jurisdiction and/or state that an employee works.

Read More

Blog Feature

Construction & Real Estate

Beginner's Guide: Real Estate Waterfalls

A real estate waterfall is a term used to describe how real estate partners distribute cash flow. The “waterfall” is a way of visualizing various “pools” in a real estate partnership. Cash flow fills up each pool in succession, which spills over into the next pool. Each step along the way, the waterfall flows based on an agreed-upon methodology for distributing the profits. Once a pool has filled, remaining cash flows to the next pool, divided per the terms of the partnership agreement between the general and limited partners.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Pay Less in Taxes When Transferring Your Family-Owned Business to the Next Generation

There are many different ways a business owner can transfer a family-owned business to the next generation. Each method comes with its own set of risks and benefits, especially when it comes to tax implications associated with the transfer or sale.

Read More

Blog Feature

Government Contractors

CMMC Certification for Government Contractors

If your government contracting business doesn’t have its CMMC certification, you could be ineligible for future contracts — causing a hard hit to your revenue stream. With all eyes on cyber security these days, CMMC compliance is a critical issue that government contractors need to tackle. With CMMC compliance being required by many 2022 contracts, now is the time for government contractors to work toward the certification.

Read More

Blog Feature

High Net Worth Families  |  Service Businesses

King of Pop’s Estate Prevails Against IRS

The U.S. Tax Court recently issued a 271-page opinion, ending the long-running litigation between the Estate of Michael Jackson and the Internal Revenue Service. The court’s ruling was a major win for Jackson’s estate and the decision has the potential to impact future valuation cases.

Read More

Blog Feature

Nonprofit

How to Prepare for Your Private School’s Next Audit

While students might be out for the season, summer is often the time when private schools hit the books to prepare for their yearly audit. Here is a quick guide on how to prepare your private school for this year’s audit.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

New Tax Reporting Requirement for Virginia Businesses — Unitary Business Report

Businesses who are subject to Virginia income tax may need to file a one-time Unitary Business Report by July 1, 2021. If your company is required to file this report but fails to file by July 1, your business will be subject to a $10,000 fine. This new filing requirement affects businesses that are part of a “unitary business.”

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Before Transferring Your Family Business to the Kids, Consider These Things

I was on my way home the other day, talking with a client who was stressed about a major decision she was facing. After years of pouring her heart and soul, not to mention money, into building a successful family-owned business, she was ready to move on and pass it along to two of her children. She called to talk about the tax implications of selling the business, but instead of talking about capital gain, avoiding double taxes and minimizing tax liability, I steered the conversation in quite a different direction.

Read More

Blog Feature

Healthcare

Quick Guide: Accounts Receivable Management for Long Term Care Facilities

As every long term care provider knows, effectively managing accounts receivable is critical to an organization’s financial success.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

8 Characteristics of Successful Family-Owned Businesses

There’s no magic bullet for making your family-owned business hum smoothly along from one generation to the next. The good news? You can learn from successful family-owned businesses that have made it to the second, third, fourth and even fifth generations. I took some time to think about my most profitable family-owned business clients and identify what they all have in common. Here’s what I came up with.

Read More

Blog Feature

Business Valuation  |  Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution

When Do You Need a Business Valuation?

A business valuation is often required to accomplish various personal, estate or business goals. There are certain life events that require business owners to get a business valuation.

Read More

Blog Feature

Business Valuation  |  Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Quick Guide: Exit Planning for Family-Owned Businesses

If the COVID-19 pandemic has taught us anything, it’s that we don’t know what’s coming around the corner. And like the pandemic, the next thing that comes around the corner will likely be out of your control. But there is something you can control with some careful planning: the transfer of your family-owned business. Let’s talk about business exit plans.

Read More

Blog Feature

Forensics & Litigation Support

Calculating an Individual’s Lost Earnings and Benefits: Know the Facts

Economic damages claimed by individuals in cases arising from personal injury, wrongful death, wrongful employment termination and employment discrimination typically include lost earnings and fringe benefits. Attorneys frequently retain CPAs as expert witnesses to determine the amount of those economic damages and to provide expert witness testimony. Let’s look at the role of a CPA as an expert in these cases.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

Tax Changes for Individuals and Businesses Under the American Rescue Plan

On March 11, 2021, President Biden signed the American Rescue Plan into law. This $1.9 trillion COVID relief bill contains several tax provisions. Here are the highlights for individuals and businesses.

Read More

Blog Feature

Forensics & Litigation Support

Tracing Commingled Property in Divorce

A challenging aspect of any divorce proceeding is the division of assets — who gets what and how much?

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Maryland Passes $1 Billion+ COVID-19 RELIEF Act

Maryland Governor Larry Hogan signed the RELIEF Act into law on February 15, 2021. The RELIEF Act is intended to help reverse some of the adverse economic conditions brought about by the COVID-19 pandemic. This legislation includes changes to personal and business tax filings, relief payments for certain individuals, a sales and use tax credit, and changes to pass-through entity taxation. Let’s look more closely at some of the key provisions in the $1 billion plus relief package.

Read More

Blog Feature

Construction & Real Estate

Why Real Estate Companies Should Consider Income Tax Basis Accounting for Financial Statements

While it’s not necessarily a secret, there may be some real estate companies that aren’t aware that there’s an alternative to GAAP (Generally Accepted Accounting Principles) for maintaining their accounting records and presenting their financial statements. The accrual-based income tax basis of accounting is an acceptable alternative to GAAP for real estate companies. If income tax basis accounting is the right fit for your company, it could save you time and money when it comes to year-end reporting. Let’s take a closer look at the upside of the income tax basis accounting method.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

IRS to Increase Audits by 50% in 2021

They are the last words any business owner wants to hear: “You are being audited by the IRS.”

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Tips for Managing Cash Flow in a Recession

In a recession, the most important thing a business can do is take control of its finances, especially when it comes to cash flow.

Read More

Blog Feature

Construction & Real Estate

AASHTO 2021 National Compensation Matrix Is Here

Heads up to architecture and engineering firms: the American Association of State Highway and Transportation Officials has released its 2021 National Compensation Matrix (NCM). This is significant for architecture and engineering firms because the NCM is a tool that helps them demonstrate compliance with a regulation that has a huge impact on their profitability.

Read More

Blog Feature

Nonprofit

Quick Guide: Membership Retention Rates for Associations

As I write this, it’s hard to believe we are in February 2021. It’s even harder to believe that we are almost a year into the pandemic. As much as we all want to forget about 2020 and go full steam ahead in 2021, now is the time for associations, societies and other nonprofits, especially those with calendar year ends, to evaluate the effects that COVID-19 had on one of their most crucial benchmarks / metrics — membership retention.

Read More

Blog Feature

Business Valuation  |  Construction & Real Estate  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

Exit Planning Would Have Saved This Family-Owned Business from Bankruptcy

Whether you want your company to continue growing after you retire or simply want to turn a profit on the sale of your business, every company owner needs an exit plan. As a CPA who has worked with business owners for decades, I’ve seen several companies unravel simply because they failed to plan ahead. Here’s just one example of a company that lost it all.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Some PPP Loan Recipients Now Eligible for Employee Retention Tax Credit

After this article was published in February 2021, the Employee Retention Tax Credit was expanded for the entirety of 2021. Then, the Infrastructure Investment and Jobs Act, signed into law on November 15, 2021, set the ERTC to expire at the end of the third quarter of 2021. Read more about the tax provisions in the infrastructure bill here.   One of the big highlights of the Consolidated Appropriations Act, 2021 is the expansion and extension of the Employee Retention Tax Credit (ERTC). This change is significant because now, under the new law, some businesses can take advantage of both the Paycheck Protection Program (PPP) and the ERTC — as long as there is no double dipping with the same funds.

Read More

Blog Feature

Business Valuation  |  Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

4 Critical Tax Consequences to Consider When Selling Your Business

The sale of a business is often the most significant financial event an owner faces during his or her lifetime. Many times, however, the owner begins negotiating the sale without understanding how critical tax aspects of the deal structure can have a huge effect on the net amount of money they’ll receive. Understanding key factors about your business will result in you being able to negotiate the best deal for you, or at least understand the implications of a deal.

Read More

Blog Feature

Fresh Ideas  |  Nonprofit

Jennifer Rock: Nonprofit CPA and Rock Star Volunteer Offers Advice

The spirit of volunteerism runs deep here at Gross Mendelsohn. Recently I sat down for a conversation with Jennifer Rock of our Nonprofit Group. Jenn is a nonprofit auditor and has been an absolute rock star volunteer for several local nonprofit organizations, who I might add, are lucky to have her on their side. I’m excited to share Jenn’s story, and the advice she has for nonprofit leaders from the perspective of both a CPA and a volunteer.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors

3 Ways Construction Contractors Can Prepare for Their First Audit

Maybe you have a new contract that requires an audit or maybe your bank requested audited financial statements. If you’re a construction contractor, a first-time audit can seem overwhelming and daunting. Because your work in process schedule is crucial to your company’s revenue recognition, we’ve identified the top three things contractors can do when preparing their WIP schedule as part of the financial statement audit.

Read More

Blog Feature

High Net Worth Families

Family Offices — Lessons for Everyday Families

It’s normal for high net worth families to have “family offices” that manage banking, investments, bill paying and more. But most of us aren’t born with the name Rockefeller and we don’t have family offices. However, I believe there are lessons to be learned from family offices that are helpful for any family who wants to get a better handle on their financial situation. As a CPA and Certified Financial Planner, I work with high net worth clients who have family offices. I apply some of the principles behind family offices to my other clients. Let’s look at family offices, their purpose and how we can apply their benefits to the financial matters of everyday folks.

Read More

Blog Feature

Construction & Real Estate

Five Keys to a Successful Family-Owned Construction Business

Running a family-owned construction business comes with its own unique set of opportunities and pitfalls. Between managing employees, some of them family members, and identifying a successor to continue your legacy, the dynamics of a family-owned business are far from cut and dry.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Deductibility of Meals Provided by Restaurants Increases to 100% in 2021 and 2022

There’s a win-win for business taxpayers and restaurants in the latest round of stimulus legislation, known as the Consolidated Appropriations Act, 2021. Under the new legislation, business meals provided by restaurants in 2021 and 2022 are now 100% deductible. Previously, the deduction of food and beverage expenses associated with operating a business was limited to 50%. The new 100% deduction applies to meals in a restaurant, and takeout and delivery meals provided by a restaurant. Let’s dig into the specifics.

Read More

Blog Feature

Business Valuation

Valuation Experts Clash Over Prince’s Estate

Legendary musician Prince died on April 21, 2016 without a will. As a result, it created one of the largest and most complicated probate hearings in his home state of Minnesota’s history. The Internal Revenue Service is claiming that the executors of Prince’s estate have undervalued the estate by 50%, or about $80 million. The IRS determined that Prince’s estate is worth $163.2 million, well above the $82.3 million valuation submitted by the estate’s administrator, Comerica Bank & Trust. No will, no estate plan and a vast difference of opinion among valuation experts. Let’s look behind the curtain at how this is playing out.

Read More

Blog Feature

Business Valuation  |  Construction & Real Estate

Exit Planning Strategies for Construction Contractors

Even when you love your work, it's inevitable that you will eventually have to leave your role as the owner of your construction company. The bad news is, there is significant planning to do. The good news is, there are things you can do to leave your construction business in good hands and get real value out of your business in the transaction. Let's take a look at some of those methods.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit

Layoff or Furlough: What’s Right for Your Business?

If you are considering ways to manage your workforce to protect the financial viability of your organization, you’re faced with some tough decisions ahead. It’s important to know what your options are, and how each option affects your business and employees.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

Expected Tax Changes Under the Biden Administration

The year ahead could bring major tax changes for businesses and families. President-elect Joe Biden talked about several big tax changes on the campaign trail. What we don’t yet know is how easy it will be for those proposed changes to become law.

Read More

Blog Feature

Construction & Real Estate  |  Forensics & Litigation Support  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

How to Prevent Fraud at Your Small Business

When a small business has an issue with fraud, it’s usually for one key reason: a lack of internal controls. Internal controls are “checks” a business has in place to deter fraud.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

New Form for Reporting Nonemployee Compensation for 2020: 1099-NEC

January is just around the corner and with it comes the beginning of a new annual information reporting cycle. For small businesses accustomed to using Form 1099-MISC to report nonemployee compensation, there are important changes that you should be aware of when reporting nonemployee compensation for the 2020 tax year.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Owners of Maryland Pass-Through Entities Could See Significant Tax Deduction

Maryland's RELIEF Act, signed into law February 15, 2021, provides clarification on the taxation of pass-through entities. Read more here. Ever since the sweeping tax law changes brought about by the Tax Cuts & Jobs Act of 2017, high-tax states like Maryland have been scheming to circumvent the $10,000 cap on state tax deductions. After some trial and error, the U.S. Treasury and the IRS approved one of those schemes. Maryland is now allowing pass-through entities (PTE) to elect to subject themselves to an entity-level tax on behalf of Maryland resident members. The members that had Maryland tax paid on the PTE level will receive a corresponding state tax credit for the same amount. The benefit of this is that a PTE can deduct the tax paid on the PTE level, which will then flow to the member’s K-1. This is effective for any tax payments made after November 9, 2020.

Read More

Blog Feature

Forensics & Litigation Support

How to Leverage a Financial Advisor During or After a Divorce

The story is a common one: the divorce settlement has been finalized. The couple parts ways, with both parties walking away with certain assets. Inevitably, only one of the parties has likely maintained a relationship with their financial advisor. Often, it’s been the husband who has managed the couple’s investment accounts alongside a financial advisor. He most likely will continue that relationship, while the wife, who is walking away with a nice settlement after the divorce proceedings, is left without a financial advisor. It’s important for that spouse to quickly find their own financial advisor who can help manage the money that was obtained through the settlement.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

How to Claim a Home Office Deduction

2020 has been a unique year to say the least. Many people who would otherwise commute to an office or jobsite every day are finding that they need to work from home because of the COVID-19 pandemic and social distancing restrictions. There may be tax benefits for individuals who find themselves setting up shop at home for an undetermined period of time. Here’s what you need to know to take advantage of those rules.

Read More

Blog Feature

Business Valuation  |  Forensics & Litigation Support

Valuation of Business for Estate Planning

An interest in a closely-held business can often be one of the most significant assets in an individual’s estate. As such, there are many planning opportunities that exist when creating an estate plan for a business owner. A timely valuation prepared by a qualified business valuation professional may be necessary to make informed business and financial decisions. Let’s take a look at the ins and outs of business valuation when there’s a business involved in an estate.

Read More

Blog Feature

Construction & Real Estate

January vs July: How Maryland’s Construction Outlook Has Changed in Just a Few Months

The Maryland construction industry looks different than it did at the beginning of 2020. While many contractors are working off a backlog, it’s hard to predict what to expect going forward. That’s why we surveyed Maryland construction contractors in July 2020 to get an idea on what the future of the industry holds.

Read More

Blog Feature

Forensics & Litigation Support

Phantom Income: Pass-Through Entity Income Used for Support in Divorce Cases

Calculating income for support purposes, whether it be child support or alimony, can be complicated. For owners of pass-through entities (“PTEs”), it can be especially difficult.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Economic Stimulus Bill Includes Big Tax Benefit for Business Owners

If you’re a business owner with more than $500,000 of excess business losses, the recently-passed Coronavirus Aid, Relief, and Economic Security Act (CARES) Act includes an unexpected tax giveaway you’ll want to know about.

Read More

Blog Feature

Construction & Real Estate  |  Fresh Ideas  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Lessons from a Business Owner (Who Happens to be One of Our Partners) During a Crisis

Given how so much in the world has changed in the last few months, we’ve been producing a lot of content for business owners that answers the question “What’s next for my business?” We know that the top can be a lonely place, and many business owners crave insights from other owners on how they deal with the same difficult challenges. In the spirit of sharing, this article is for business owners who are curious to know how other leaders are dealing with the pandemic. I decided to chat with David Goldner, who just finished his tenure as Gross Mendelsohn’s managing partner, to hear first-hand what he has learned as a business owner as he navigates his way through the COVID-19 crisis.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

How Long Should I Keep Tax Records?

Figuring out how long you need to keep your tax records can be tricky. The easiest (and vaguest) answer is that it depends. The general rule of thumb, according to the IRS, is that you need to keep records that support an item of income, deduction or credit until the period of limitations for that tax return runs out. The period of limitations is the time in which you can A) amend your tax return to claim a credit or refund and B) the IRS can assess additional tax.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

DC Paid Family Leave Program Begins

Effective July 1, 2020, employees who work in the District of Columbia more than 50% of the time and whose wages are subject to DC unemployment tax are eligible for paid family leave. 

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

6 Things to Know About Virginia’s New Budget Bill

On May 27, 2020 Virginia enacted a biennial budget bill containing various corporate and personal income tax provisions. Here is a summary of six key changes that’ll impact corporate and individual taxpayers.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Maryland Changes Tax Payments for Pass-through Entities

Taxpayers and tax professionals alike have debated the merits and faults of The Tax Cuts and Jobs Act of 2017 (TCJA) over the last two years. One change that has negatively affected many individuals who itemize their federal deductions is the $10,000 limit on state and local taxes (SALT cap). Maryland recently joined Connecticut, New Jersey, and several other states employing a new strategy to provide a larger federal benefit to individuals for state taxes paid.

Read More

Blog Feature

Government Contractors

DOL Releases Updated Voluntary Self‐Identification of Disability Form

The Office of Management and Budget (OMB) recently approved the use of a revised Voluntary Self‐Identification of Disability Form, also known as Form CC-305. The more streamlined, user-friendly form is intended to increase the response rate of applicants and employees who choose to voluntarily self-identify their disability status.

Read More

Blog Feature

Government Contractors

Advice for Government Contractors on Tracking the Application of COVID-19 Related Funding

The Government Contractors Group at Gross Mendelsohn has been following the COVID-19 related traffic at the Department of Defense and other agencies, including DoD Class Deviation - CARES Act S3610 and DFARS 231.205-79 (CARES Act S3610 Implementation and subsequent FAQs).

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Technology Tips for Growing Businesses

Sharon Paul, CPA, really wants you to install your computer updates. (Seriously, though.) A tech titan and partner in Gross Mendelsohn’s Technology Solutions Group, Sharon has been helping businesses figure out their toughest technology issues for 30+ years. When she stopped by the set of Next Level, Sharon told me about how technology can help a business run more efficiently.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

5 Tips for Growing Your Business

Most small to mid-size business owners have a lot on their plate. Not only are you still involved in much of the day-to-day operations at your company, but you probably also wear the hat of accountant, marketer, recruiter and more. This shifting list of priorities can make it tough to focus on building and growing your business. Here are just some tips for business owners looking to grow their company.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

How to Market a Business Successfully in 2020

The secret sauce for a great marketing strategy starts with the story you tell about your business. Or at least that’s what Dan Schepleng of the Baltimore creative agency Kapowza told me when he stopped by the set of Next Level to talk about how to market a business.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Outsourced Accounting  |  Service Businesses

Accounting Advice Every Growing Business Should Hear

The #1 accounting tip that Ernie Paszkiewicz has for business owners is this: if you’re going to grow, do it profitably. In his 40+ year career, Ernie has seen the full spectrum of challenges and mistakes that trip up growing businesses.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Common Hiring Mistakes That Growing Businesses Make

If Linda Pietras has learned one thing about hiring in her 30+ year career, it’s this: a bad hire will cost you more than waiting for the right candidate. Linda joined me on the set of Next Level to talk about hiring, including common hiring mistakes that growing businesses make.

Read More

Blog Feature

Construction & Real Estate  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

Tax Challenges for Growing Businesses

Every business wonders how they can pay less in taxes. Or at least that’s what the firm’s managing partner, David Goldner told me when we sat down on the set of Next Level to chat about tax challenges that growing businesses often face.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Accounting for Computer Software Costs

Computer software drives the world. Businesses use software to account for transactions, communicate with colleagues and customers, and design and manufacture new products. One thing is clear: without software, we’d be lost. Accounting for the costs associated with software acquisition, however, can be less than straightforward. In this article, we’ll outline some things a business will need to consider when acquiring or implementing new software for its own use and how to account for those transactions.

Read More

Blog Feature

Nonprofit

The Nonprofit “Parking Tax” Was Repealed

On December 20, 2019, the “parking tax” for nonprofits was repealed. The parking tax, otherwise known as the taxation of transportation fringe benefits by nonprofit employers under Section 512(a)(7), was first brought into law with the passing of the Tax Cuts and Jobs Act (TCJA) at the end of 2017.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  High Net Worth Families  |  Manufacturing & Distribution  |  Service Businesses

How Taxpayers Will Be Impacted By Recent Tax Law Extenders

With the holidays over, tax-minded individuals are now focused on gathering their paperwork to file 2019 returns and project what their tax situation will look like in 2020. Each year, Congress decides to extend or let expire various provisions of the tax law. This article summarizes some of the more commonly-used “extenders” so individuals and business owners may understand the impact of various courses of action.

Read More

Blog Feature

Nonprofit

Liquidity Disclosures: What Nonprofits Need to Know

Nonprofits are required to include a liquidity disclosure in their financial statements. 1 This liquidity disclosure overviews qualitative and quantitative information about how the nonprofit manages its liquid resources. This information can make it easier for someone reviewing a nonprofit’s financial statements to understand the financial health of the organization. Currently, there is no required format on how to present the information in the liquidity disclosure, as long as all of the required elements are included in the disclosure.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Service Businesses

Exposure to Personal Liability of Business Owners and Employees Increases Thanks to Wayfair Court Decision

The Supreme Court’s decision in South Dakota vs. Wayfair continues to have a ripple effect for businesses with interstate sales. With the Wayfair decision adding potentially significant sales tax exposure to some businesses, there is also the potential for increased exposure to the personal liability of unsuspecting business owners, corporate officers and even employees like tax and finance managers. It’s more important than ever for “responsible persons,” which we’ll define in a moment, to understand their responsibility and potential liability in the sales tax process.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Manufacturing & Distribution  |  Service Businesses

Economic Presence vs Physical Presence: Sales Tax Considerations After Wayfair

In June 2018, the United States Supreme Court issued their ruling in the case of South Dakota vs. Wayfair, which cleared the way for states to collect sales tax from businesses that do not have a “physical presence” in the state, but do have an “economic presence” in the state. While much attention has been given to the impact on online retailers, the decision potentially impacts the sales tax obligations of any business that makes remote sales to out-of-state customers. While some states are still reacting to the decision, many states have already implemented laws that require remote sellers to collect and remit sales tax on sales to out-of-state customers without having a physical presence in the state. Understanding this new and still evolving sales tax landscape is important for any company that conducts business in multiple states.

Read More

Blog Feature

Construction & Real Estate  |  Government Contractors  |  Healthcare  |  Manufacturing & Distribution  |  Nonprofit  |  Service Businesses

Businesses Must Use New Form W-4 Starting January 1, 2020

The long awaited new Form W-4 is finally here. Here’s the rundown on the new form, which businesses must start using for new employees hired on or after January 1, 2020.

Read More

Blog Feature

Nonprofit

E-Filing Will Be Mandatory for All Tax-Exempt Organizations

The IRS recently announced new rules for e-filing requirements for tax-exempt organizations. The Taxpayer First Act requires all tax-exempt organizations to electronically file Form 990. Currently, only a limited number of nonprofits are required to file electronically. That all changes for tax-exempt organizations starting with tax years that begin after July 1, 2019. Let’s look at the kinds of organizations and tax returns that are affected.

Read More