Articles From Lumsden McCormick

As 2025 winds down, now is the time to review your business expenses and lock in potential tax savings. This article breaks down what’s still deductible under the latest tax laws, including updates from the One Big Beautiful Bill (OBBB) and the TCJA, and offers practical tips to help you plan ahead for 2026.

Nonprofit boards typically follow one of three models: policy, working, or hybrid. Policy boards focus on governance and strategic oversight, working boards handle hands-on tasks for early-stage organizations, and hybrid boards combine both approaches for flexibility during growth or transitions. Choosing the right structure ensures effective leadership and alignment with your nonprofit’s mission.

QIP offers businesses a way to accelerate deductions on nonresidential building improvements through bonus depreciation and Section 179 expensing. Recent legislation under the OBBB permanently reinstates 100% bonus depreciation for qualifying assets placed in service after January 19, 2025, while also increasing Section 179 limits. Strategic planning is essential to balance immediate tax benefits against potential future implications like depreciation recapture and excess business loss rules.

A financial power of attorney ensures someone you trust can manage your finances if you become incapacitated, avoiding costly court proceedings. You can choose between a springing POA, which activates under specific conditions, or a durable POA, which takes effect immediately and allows for quicker action in emergencies. Pairing it with a health care POA and updating both regularly helps protect your wishes and your family’s peace of mind.

For nonprofit organizations, matching gifts represent a powerful opportunity to boost fundraising and hit ambitious goals. Here’s how to make the most of it.

The OBBBA creates new Code Section 174A, which allows taxpayers to fully deduct domestic research costs in the year paid or incurred (the 174A deduction method), effective for tax years beginning after December 31, 2024. Taxpayers also have the option of electing to capitalize domestic research costs and amortize the amounts beginning with the month in which the taxpayer first realizes benefits from the expenses, with a 60-month minimum (the 174A amortization method). 

Charitable donations can provide tax benefits, but only if they meet strict IRS substantiation requirements. Cash and noncash gifts require specific documentation, and higher-value contributions may involve additional forms or appraisals. Starting in 2026, new rules under the OBBB introduce a universal deduction, making strategic planning essential.

Development directors can boost recruitment by using social media platforms, mapping neighborhood resources, showcasing real volunteer stories, and creating easy pathways to get involved. Continued efforts during the holiday season can turn short-term volunteers into long-term supporters, building a sustainable network for your mission.

The IRS has released the 2025–2026  per diem rates for business travel, effective October 1, 2025. These rates simplify expense reimbursements by providing fixed daily amounts for lodging, meals, and incidentals based on whether the destination is a high-cost or low-cost area. Switching to the per diem method can save time, reduce paperwork, and ensure compliance for your business.

Beneficiary designations can override your will or trust, potentially disrupting your estate plan and causing unintended consequences. By naming both primary and contingent beneficiaries, updating them as life changes, and considering government benefit implications, you can ensure your assets are distributed according to your wishes and avoid unnecessary legal or financial complications.