Mike Thrift
Marketing Manager
The Interest-Free Loan That Isn't: How Section 7872 Imputes Interest on Family and Shareholder Loans
A below-market loan triggers Section 7872, which treats forgone interest as taxable income to the lender even when no cash changes hands. This guide covers the $10,000 and $100,000 de minimis exceptions, the gift tax connection, and how charging the AFR avoids the whole problem.
Inventory Shrinkage and Cycle Counting for Small Retailers and Warehouses
A practical guide for small retailers and warehouses to compute their shrink rate, design an ABC-based cycle count program, book shrinkage adjustments to the ledger, and turn variance patterns into loss-prevention action.
The Quiet Margin Leak: How Retailers and Warehouses Measure Shrinkage and Fix It With Cycle Counting
Inventory shrinkage is the gap between recorded and physical stock. This guide explains how to calculate a shrink rate, why cycle counting and ABC analysis beat the annual physical count, and how to record the adjustment with a dedicated expense account.
The IRA Once-Per-Year Rollover Rule: One 60-Day Rollover and the Trustee-to-Trustee Workaround
You get only one IRA-to-IRA 60-day rollover per rolling 12-month period, counting all your IRAs as one account — a limit the 2014 Bobrow Tax Court case made aggregate. Trustee-to-trustee transfers are exempt and unlimited.
The IRA 60-Day Rollover Trap: How One Tax Attorney's $65,000 Mistake Rewrote the Rules for Every American Retirement Saver
After Bobrow v. Commissioner, the once-per-year IRA rollover limit aggregates every traditional, Roth, SEP, and SIMPLE IRA you own. Here is how the rule works, what a violation costs, and the trustee-to-trustee transfer that sidesteps the cap entirely.
Job Costing for Contractors: Labor Burden, Cost Codes, and Committed Costs
Job costing assigns every dollar of cost to the job that caused it. Fully burdened labor runs 30 to 50 percent above base wage, overhead is applied with a predetermined rate, and committed costs reveal a budget overrun before the invoices arrive — read the variance column weekly.
Lower of Cost or Net Realizable Value: How to Write Down Obsolete Inventory
LCNRV requires reporting inventory at the lower of its cost or net realizable value (NRV = selling price − completion costs − selling costs). Once written down under U.S. GAAP, inventory cannot be written back up.
Lower of Cost or Net Realizable Value (LCNRV): How to Write Down Obsolete Inventory and Stop Overstating Your Balance Sheet
A practical walkthrough of the LCNRV rule under ASC 330 — how to calculate net realizable value, book the write-down, handle obsolete or damaged inventory, and avoid the phantom-profit trap of overstated inventory on the balance sheet.
MLP K-1 Tax Issues for Individual Investors: UBTI, Section 751 Recapture, and Multi-State Filings
A Master Limited Partnership pays cash quarterly but issues a Schedule K-1, not a 1099. Most distributions reduce your cost basis instead of being taxed, holding units in an IRA can trigger UBTI and a Form 990-T once income exceeds $1,000, and selling converts depreciation into ordinary income under Section 751 — taxed up to 37%.
MLP K-1 Tax Issues: UBTI, Section 751, and Multi-State Filings for Individual Investors
How individual MLP investors actually owe tax — UBTI on IRA-held units crosses the $1,000 Form 990-T threshold faster than expected, Section 751 reclassifies part of any sale gain as ordinary income, and the K-1's state schedule can force nonresident filings in operating states. Includes practical thresholds and basis-tracking rules.
The Net Working Capital Peg and Post-Closing True-Up: How Business Sellers Lose Six Figures at Closing
How the net working capital peg and post-closing true-up quietly transfer cash from sellers to buyers in mid-market M&A, and the monthly accrual-basis bookkeeping discipline that protects sale price.
NIL Collectives and 501(c)(3) Status: What IRS Memorandum AM 2023-004 Means for Donors
IRS Memorandum AM 2023-004 holds that most nonprofit NIL collectives fail the 501(c)(3) operational test because compensating student-athletes is substantial private benefit, not charitable activity — meaning donor contributions are often not deductible.