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Maine is the proud home of a number of microbreweries, with frequent startups placing us among the top breweries per capita in the nation. Legitimate reduction of income taxes is one way a new brewery can reduce a significant barrier to survival and growth. An often-overlooked tool to reduce taxes is the federal research and development credit, and breweries young and old, large and small, should take advantage of the significant tax savings it can provide.

Internal Revenue Code Section 1031’s “like-kind exchange” rules allow taxpayers to defer the gain on the sale of business or investment property if they reinvest in similar business or investment property within a specified time frame. Many transactions qualify, ranging from simple swaps to complicated delayed exchanges. No matter the complexity level or the size, all exchanges that qualify under § 1031 have the same effect: the deferral of taxable gain or loss and deferral of related taxes.

An interesting outcome in a recent court case will allow greater interest deductions for unmarried couples. While on its face it may seem only to apply narrowly to taxpayers with very large mortgages, under the right circumstances it may allow greater deductions for many other taxpayers, and the loans are not entirely limited to funds spent on housing. In Voss vs. Commissioner, the IRS argued against this outcome. The IRS won the argument in Tax Court, but lost in appeals and now formally has acquiesced (agreed it will no longer fight this issue with any taxpayer).

The Bipartisan Budget Act of 2015, enacted into law November 2, 2015, significantly changes the current Internal Revenue Service (IRS) audit rules that apply to partnerships and entities taxed as partnerships for U.S. federal income tax purposes by repealing and replacing the audit rules established under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) with a new set of partnership audit rules.

It has been over two decades since the Financial Accounting Standards Board (FASB) last updated the not-for-profit financial reporting model. Over the past couple of years, the FASB has undertaken a project aimed at providing more useful information to donors, grantors, creditors, and other users of a not-for-profit’s financial statements about its performance and resources.

Shakespeare, through Polonius (Hamlet), tells us “Neither a borrower nor a lender be; for loan oft loses both itself and friend…”  Proposed tax rules suggest that it will also soon lose favorable tax treatment.

Manufacturing has long been considered the backbone of our country’s industry. It is vital to a country’s prosperity, in part because most manufacturing endeavors support a number of related manufacturing, service and other industries as well.