Because inflation is high, many IRS inflation adjustments for 2023 will change more than they have in recent years. In the IRS Revenue Procedure 2022-38, it details these amounts. The following chart shows how these adjustments compare to amounts for 2022. Refer to these changes for your individual tax planning. In addition, the Social Security Administration announced that the Social Security wage base (the amount of earnings subject to ... more
2022 Year-End Tax Planning for Individuals
Ever since the Tax Cuts and Jobs Act of 2017 (TCJA) basically doubled the standard deduction amounts for many individual taxpayers, more households are opting for the standard deduction. For this year, the standard deduction allowances are: $12,950 for single people and married individuals filing separate returns, $19,400 for people who use head-of-household filing status, and $25,900 for married couples filing jointly. Slightly higher ... more
Tax Planning for The Inflation Reduction Act
The $740 billion Inflation Reduction Act signed into federal law in August 2022 contains many tax breaks while raising revenue through a new minimum tax on large, profitable corporations and an excise tax on stock buybacks. It is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. Here are some highlights of the new legislation that may be important for your ... more
Benefits of a Great Internship Experience
An internship is like trying before you buy. It is probably why many professions encourage students to take internships before they graduate. The realities of day-to-day work experiences may reinforce your career decision or cause you to change majors. With that in mind, how can you make your internship a great one? Look for these things in your accounting firm internship experience. Ask questions. Be open to new things. Make friends. But first, ... more
How to Land Your Dream Job
We get it. Looking for a job is not easy, especially if you want to find something with a stable outlook. You also want to see yourself working there long-term. Wouldn’t it be great if you could find your dream job and achieve the self-actualization that comes with attaining a fulfilling career? Consider where you want to go. What is your plan for getting there? We'll explain how to find your dream job and what you can do to land it. How to ... more
Tips to Avoid Misstatements in Affordable Housing Intercompany Transactions
We frequently get questions from affordable housing managers regarding the reconciliation of intercompany accounts and confirmation of balances between business units. Intercompany transactions are not unusual for developers with multiple properties, but they can result in misstatements on the balance sheet without proper internal controls. During the planning phase of an audit, we often identify intercompany transactions as an area of ... more
How Does Resyndication Work For Affordable Housing?
For older multi-family housing properties that need rehabilitation beyond what is possible with replacement reserves, developers will seek outside investors interested in tax credits. New private equity players are assembling funds to support these projects and preserve affordable housing, but the project must be large enough to make it worth their investment. Resyndication is one way to expand the scope of the deal, specifically by ... more
5 Ways to Get More Out of Your Career
There are plenty of opportunities for accounting career development here at LvHJ. When you’re in a rut or you feel like you’ve been doing the same thing for far too long, you can always make a change for the better. It all starts from within. Whether you are a seasoned professional or an intern just starting out, here are five ways you can get more out of your career – and you will feel more fulfilled, too! 1. Start a Club Are there clubs ... more
New Broadband Access Grant Program for Affordable Housing
Developers in underserved communities will have access to federal passthrough state grants to lower installation costs of broadband internet in new developments and existing multi-family properties. The grants will help finance delivery of free Wi-Fi access to residents. Part of the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), the Broadband Equity, Access, and Deployment Program (BEAD) offers $100 million (minimum) to each state ... more
Preparing for Your Single Audit
For many not-for-profits, federal funding is vital for sustaining programming and operations. However, the funding could carry requirements for compliance and financial reporting. For example, if a not-for-profit entity expends $750,000 or more in federal funds in its fiscal year, this will trigger the requirement for a single audit under the Uniform Guidance for testing of the entity compliance with federal award requirements. Furthermore, ... more
New How-To Guide for Affordable Housing Finance
Over the coming months, the U.S. Department of the Treasury (Treasury) is conducting webinars and briefings with states, local governments and nonprofit and private sector entities to discuss how State and Local Fiscal Recovery Funds (SLFRF) can be used to expand affordable housing supply. They have also published a how-to guide. New guidance clarifies how states and localities can use SLFRF to make long-term loans to affordable housing ... more
What Do I Need for My Office Space?
Here in California, our style is all about comfort, soft neutrals, natural materials and bringing the outdoors inside. The same is true for cool office spaces. Whether you are a public accountant in California or working remotely in another state, you might be wondering how to change up your office space. Does your work area feel a little lackluster? Are you tired of staring at the same wall color or basic file organizer? Here are a few tips to ... more
What to Wear to the Interview (Including Remote Options)
Experienced accounting professionals seeking a career opportunity in the San Francisco Bay area are wondering: in this era of hybrid interviews, what do I wear in-person vs. on camera? Should you dress differently when interviewing remotely? Here are our tips for dressing professionally and excluding distractions when interviewing in-person and remotely to help land you the job of your dreams. What Your Outfit Says About You When you’re ... more
Prepare for Your Regional Center’s New Audit Team
Although changing audit firms can seem difficult, California’s regional centers must do it every five years. California’s legislature enacted the Welfare and Institutions Code (“WIC” section 4639), in 2011, which states that regional centers shall not use the same accounting firm more than five times in every 10-year period. After management publishes their request for proposal for a new audit firm, consider the following factors when selecting ... more
Wondering what to include on your resume?
Your resume is your go or no-go qualifier for any job you apply for. Of course, there are others tests to pass once you submit your resume, but the first gate you will need to pass is the resume test. As a prospective candidate, you want to know what you should include on your resume to get a good accounting job or internship. Do you need to write a cover letter? How many pages should the resume be? Should it be a PDF or Word doc? Set your ... more
3 Tips to Help Your Board Members Succeed
Board members have a fiduciary duty as stewards of public trust to act in the best interests of the organization that they serve. They lay aside personal interests to focus on ethical oversight of the organization’s mission accomplishments, results of operations and financial position. Nonprofit board members may monitor support and other funding to ensure that it is used in accordance with the nonprofit’s mission. They are concerned that the ... more
Due for an Audit? Identify Issues Sooner Not Later
Surplus cash calculation and distribution is one of the most interesting parts of the financial statements of affordable housing entities. It determines the amount of residual cash available to make fees, distributions, ground leasing and deferred loan payments. Surplus cash distribution and the calculation itself are important to review during an audit because: Lenders, lessors, sponsors and investors eligible to receive surplus cash ... more
Update Your CTCAC Compliance Forms
The California Tax Credit Allocation Committee (CTCAC) has published updated versions of almost all forms for low-income housing tax credit (LIHTC) compliance. Owners and management agents have through December 31, 2022 to implement use of the new forms. The CTCAC will not accept use of modified or previously approved forms — or modifications or changes to the new forms. Effective January 1, 2023, use of any outdated or modified versions of ... more
6 Ways Giving Back to the Community Can Enhance Your Life
There are many benefits to joining an association. When you work for LvHJ, you are also encouraged to become a member of any number of nonprofit associations to help grow your career which allows you to give back to the community at the same time. Since we are Professionals for Good, we are always looking for opportunities to help make the world a better place. Here is how giving back to the community, especially nonprofit associations in ... more
How Public Speaking Can Advance Your Accounting Career
Accountants have to present information all the time, and they need to do it with confidence to represent the firm well. This is best exemplified through public speaking as a means of delivering information concisely and informatively. This also shows authority in your delivery. You need good speaking skills to: Be credible in front of colleagues Be credible in front of clients Build your reputation in accounting 1. Credibility in ... more
Take Advantage of Tax Breaks for Small Businesses
Some significant tax breaks may be available to smaller and medium-sized businesses that aren't available to larger enterprises. Here are three examples you should consider when filing your taxes for 2021 and planning for 2022. 1. QBI Deduction The qualified business income (QBI) deduction was a centerpiece of the Tax Cuts and Jobs Act (TCJA). For 2018 through 2025, the QBI deduction is available to eligible individuals, trusts and estates. But ... more
Choosing the Best CPA Firm for You
Knowing what you want in a CPA firm goes a long way toward helping you make the decision as to which firm you’d like to work for. And it’s a hard decision to make. You want to find a position that comes with job security, provides you a living wage and works with your schedule and work-life balance needs. Ideally, you’re looking for an environment where you feel comfortable working there to build your career, a firm that you can stake your ... more
Important Tax Figures for 2022
The Internal Revenue Service announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about these annual adjustments. The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. * ... more
Close-Up on the Individual AMT
The Tax Cuts and Jobs Act (TCJA) made the individual alternative minimum tax more taxpayer friendly for 2018 through 2025. For those years, the odds of owing the alternative minimum tax (AMT) have been significantly reduced - and, if you still owe the AMT, you'll probably owe less than under prior law. Are you at risk for this dreaded tax? Various factors make it difficult to pinpoint exactly who will be hit by the AMT. Here's a summary of ... more
Work-Life Balance When WFH
Virtual reality, IRL, working from home—what’s the difference? Should you look for a CPA job with the ability to work from home, or do you find yourself more focused when you’re in the office? Maybe you don’t know what you prefer yet. Here are the key elements of working from home vs. working in the office as well as tips on work-life balance when you’re WFH. How Does Working from Home… Work? If you’re thinking about working from home, but you ... more
IRS Extends Temporary Relief for Late-leased Units
Notice 2022-05 released by the Internal Revenue Service (IRS) on January 10, 2022 provided extensions to various compliance deadlines for low-income housing projects claiming credits under Internal Revenue Code (IRC) Section 42. Prior to the release of Notice 2022-05, the IRS had provided temporary relief in its Notice 2021-12. However, due to the ongoing COVID-19 pandemic, the IRS in its Notice 2022-05 is now extending the period for some of the ... more
IRS Notice 2022-05 Extends Compliance Deadlines for LIHTC Projects
In response to the ongoing COVID-19 pandemic, the IRS has issued Notice 2022-05 on January 10, 2022 to extend temporary relief from certain requirements under the Internal Revenue Code (IRC) Section 42 for qualified low-income housing projects. For relief that was provided before this recent IRS notice, please refer to our 1/25/21 blog “IRS Notice 2021-12 Provides LIHTC Relief and Extends Deadlines.” The IRS Notice 2022-05 is now extending ... more
How to Streamline Work Processes for Early Career Professionals
What if there were easy solutions to make your work day lighter or more balanced? Chances are, there are streamlined processes to help you do that! Here are a few tips to streamline a business process or task in front of you. 1. Identify the end goal. Begin by identifying your goal. Interns and audit associates have many tasks to tackle throughout the week, so it helps to pick one goal to focus on at the start of your day. For ... more
IRS Guidance On Minimum 4% LIHTC Rate
On December 1, 2021, the Internal Revenue Service (IRS) issued guidance on the minimum 4% low-income housing tax credit (LIHTC) rate. Revenue Ruling (Rev Rul) 2021-20 clarifies when the 4% floor applies to projects receiving housing credit allocations or tax-exempt bonds. Revenue Procedure (Rev Proc) 2021-43 provides safe harbors for determining whether an exempt bond that is issued after December 31, 2020, or an allocation of a housing credit ... more
PPP Update: Timing and Tax Effects of PPP Loan Forgiveness
On November 18, 2021, the Internal Revenue Service (IRS) issued a series of three revenue procedures (Rev Proc) to address various tax issues relating to PPP loan forgiveness. Rev Proc 2021-48 addresses the timing of receipt of PPP forgiveness tax-exempt income. Taxpayers may treat amounts that are excluded from gross income (i.e., tax-exempt income) as received or accrued: 1. as eligible expenses associated with the PPP loan are paid or ... more