Tax Tips for Higher Education
IRS: Medical Expenses to Include HCSM Memberships
The Affordable Care Act required workers to have “essential coverage” health insurance. An exemption was “carved out” for Health Care Sharing Ministry (HCSM) memberships. However, the HCSM payments were not included in “medical expenses” under I.R.C. Section 213. Now, proposed regulations are set to change that.
Silo-ing, The CARES Act, and NOL Carrybacks – Oh My!
The 2017 TCJA got rid of Net Operation Loss (NOL) carry backs and instituted “silo-ing” of unrelated business activities. The CARES Act re-instituted NOL carry backs for certain situations. How might a 2020 net operating loss be carried back to a year prior to 2018?
Will We Be Taxed for (Virtual) Summer Camp Activities on Our Campus?
For Summer 2020, TBC is running “virtual” basketball camps. They have partnered with churches who will have fewer than ten campers attend at the church site, agree to practice “social distancing,”…
PPP Forgiveness – FTE
ISSUE: We continue to receive guidance from the SBA and Treasury Department meant to clarify Paycheck Protection Program (PPP) Loan Forgiveness. Let’s look at the FTE information. SITUATION: Marathon Bible College (MBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually. MBC’s Controller called to ask about the FTE (Full-Time Equivalent) employees calculations with regard to the PPP Loan Forgiveness process.
PPP Forgiveness – Covered Period for Payroll Costs
ISSUE: Guidance for charting/tracking payroll costs for Paycheck Protection Program (PPP) Loan Forgiveness has been issued in the instructions for the Small Business Administration’s (SBA) PPP Loan Forgiveness Application.
SITUATION: Idaho Theological Seminary is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(i). We met with their Accounting Team via video conference to talk about CARES Act funding and the reporting requirements regarding the Paycheck Protection Program. They asked, “When do we count our payroll costs for purposes of the 8-week period after we received the PPP funds? Is it cash basis or accrual basis?”…