1.50 CPE Credit Hours
When you read about tax reform, the focus is usually on how it affects individuals or businesses. But the Tax Cuts and Jobs Act changes the game for not-for-profit organizations and their razor-thin margins. The new tax law means increased Form 990-T reporting and recordkeeping, an increase in unrelated business taxable income (UBTI) for most filers, an overall higher tax rate for many organizations, reduced net operating loss (NOL) availability and other changes you need to consider. Get guidance on these major tax shifts and find out how to plan around them. Plus, get the inside scoop on which IRC definitions and guidance are available, which are being fast-tracked and which aren't expected anytime soon.
CFOs, controllers, directors, executives and tax professionals of exempt organizations; CPAs, consultants and auditors who have exempt organization clients; and board members of exempt organizations
Understand how the Tax Cuts and Jobs Act affects exempt organizations, and adjust tax planning and reporting accordingly
- New IRC Sec. 512(a)(6) -- unrelated business income tax (UBIT) activity-by-activity siloing, and how this will almost certainly inflate UBTI
- New IRC Sec. 512(a)(7) -- transit qualified nontaxable benefit provisions susceptible to UBIT
- New excise tax on excess parachute payments or compensation exceeding $1 million for the five highest-compensated employees
- New net investment income tax on colleges with significant endowments
- The unified 21 percent rate -- planning for fiscal year filers’ blended rates and dealing with the almost-certain effective tax rate increase that most 990-T filers will face
- Impact on 2017 Form 990 filers -- for 2018 months that generated new UBIT on expenses paid for qualified-as-nontaxable-benefits
Basic understanding of UBIT recommended.
Minnesota Society of CPAs
Level of Knowledge