The CPA Journal - The Voice of the Accounting Profession
WEBThe CPA Journal is a publication of the New York State Society of CPAs, and is internationally recognized as an outstanding, technical-refereed publication for accounting practitioners, educators, and other financial professionals all over the globe.Edited by CPAs for CPAs, it aims to provide accounting and other financial professionals with the …
Tax Treatment of Liquidations of Partnership Interests
WEBFeb 9, 2021 — Redemption of a Partnership Interest. Redemptions of a partner’s entire partnership interests are governed by IRC section 736. That section does not affect the amount of income, gain, or loss that will be reported by the retiring partner; instead, it determines whether the income will be a capital gain (or loss) or ordinary income, and …
Basic Tax Reporting for Decedents and Estates - The CPA Journal
WEBAug 3, 2021 — Gift and Estate Tax Returns. A fiduciary generally must file an IRS Form 706 (the federal estate tax return) only if the fair market value of the decedent’s gross assets at death plus all taxable gifts made during life (i.e., gifts exceeding the annual exclusion amount for each year) exceed the federal lifetime exemption in effect for the year of …
Using the New Reporting Requirements for Not-for-Profit Entities
WEBApr 25, 2018 — In 2016, FASB issued ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, effective for fiscal years beginning after December 15, 2017. The standard is unusual because it substantially reduces the detail required to be reported in not-for-profit financial statements, largely in the areas of display and terminology.
Tax Consequences of Settlement and Litigation Award Payments ...
WEBNov 20, 2018 — When an individual receives a settlement or litigation award payment, the likely first question is whether the payment is taxable. While CPAs may know that the answer will depend upon the claim underlying the lawsuit, several other questions can arise that will likewise depend on the facts and circumstances.
Interest Rate Swaps: Simplified Accounting for a Perfect Fair Value ...
WEBNov 27, 2017 — Accrued interest payable $325. Cash $325. 3. Entity A records the settlement of the semiannual swap-amount receivable at 5.5%, less the amount payable at LIBOR plus 1% at 5%, a decrease adjustment to the interest rate [ ( (5.5% − 5.0%) × $10,000) ÷ 2]: Cash $25. Interest expense $25.
Major Revisions to the Auditor's Report - The CPA Journal
WEBApr 7, 2021 — Overview of Changes to Audit Reports. The ASB’s changes greatly impact auditor reports. Briefly, the changes included: 1) moving the opinion to the first part of the report; 2) adding more titles; 3) disclosing management’s and the auditor’s responsibility for going concern issues; 4) introducing key audit matters (KAM); and 5) expanding the …
Depreciable Asset Lives - The CPA Journal
WEBSep 8, 2016 — FASB currently emphasizes that depreciation accounting “is a process of allocation, not of valuation” and describes it as the expense that results from the systematic and rational allocation of the cost of a productive facility or other tangible capital asset, less salvage (if any), as equitably as possible to the periods during which ...
Qualified Business Income Deduction and the Self-Employed
WEBJul 29, 2022 — The Tax Cuts and Job Act of 2017 (TCJA) included a new 20% deduction, known as the Qualified Business Income (QBI) deduction under IRC Section 199A, for sole proprietors and owners of pass-through entities for tax years beginning after December 31, 2017, and before January 1, 2026. For tax years beginning after December 31, 2025, …
Understanding the Duties of a Trustee in Administering a Trust
WEBJun 3, 2019 — In Brief. Trusts enable individuals to ensure the financial health of loved ones long after they are gone, but only if they are properly set up and administered. Trustees bear a great personal responsibility in ensuring that the trust is handled properly. The authors detail the different types of trusts, their taxation, and the trustee’s ...