Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
OMB raised the single audit threshold to $1 million in federal expenditures starting October 1, 2024. This guide explains the Subpart F audit under 2 CFR 200, SEFA reporting, four-step major program determination, the 40 and 20 percent coverage rules, and the nine-month Federal Audit Clearinghouse submission deadline for nonprofits and state and local governments.
A practical walkthrough of the Single Audit Act, the new $1 million federal expenditure threshold effective for fiscal years beginning on or after October 1, 2024, the SEFA's role, the four-step risk-based major program selection, the 12 compliance areas auditors test, and the steps nonprofits and local governments should take before crossing the threshold.
Section 162(l) lets sole proprietors, partners, and more-than-2% S-corp shareholders deduct 100% of medical, dental, vision, and long-term care premiums above the line on Schedule 1, Line 17—if they clear the earned-income cap, the spouse-employer rule, and the W-2 reporting choreography on Form 7206.
Section 83(i) lets qualified rank-and-file employees at eligible private companies defer federal income tax on RSU vests and NSO exercises for up to five years, but FICA is still due at vesting, the 30-day election window is unforgiving, and the 80 percent broad-based grant rule keeps most startups from offering it.
A Section 754 election triggers a 743(b) inside-basis step-up when a partner dies, sells, or is bought in — preventing heirs and incoming partners from paying tax twice on the same appreciation. This guide covers 743(b) and 734(b) mechanics, Section 755 allocation across asset classes, the substantial built-in loss rule, Form 15254 revocation, and when the administrative cost outweighs the benefit.
Section 645 election lets a revocable trust file as part of its estate on one Form 1041. Learn Form 8855 rules, fiscal year choices, and the irrevocable
Private foundations must distribute 5% of average non-charitable-use assets each year as qualifying distributions or face a 30% initial excise tax under IRC Section 4942. A trustee's working guide to Form 990-PF Part XII, set-asides, five-year carryovers, and the 100% additional tax.
How real estate investors and multi-entity owners use the Section 469 grouping election under Reg 1.469-4 to aggregate hours across properties and release suspended losses — covering the appropriate economic unit test, the Reg 1.469-9(g) real estate professional aggregation, Rev. Proc. 2010-13 disclosure rules, and why the election is easier to file than to undo.
Section 415(c) caps total 2026 annual additions to a defined contribution plan at $72,000 — covering employee deferrals, employer matches, and after-tax contributions. The math behind the mega backdoor Roth, the catch-up rules that sit outside the cap, and the EPCRS correction order if the limit is blown.
Section 368 defines seven reorganization types (A through G) that defer corporate and shareholder tax in M&A. This guide covers the 40% Continuity of Interest test, Type A statutory mergers, Type B stock-for-stock swaps with the 80% control requirement, Type C asset deals, and forward/reverse triangular merger structures with their consideration limits.
Section 351 lets founders incorporate without immediate tax only if the transferor group owns 80% of voting power and every non-voting class right after the exchange. Miss the control test, contribute services instead of property, or assume liabilities greater than basis, and the gain surfaces anyway. A practical playbook covering boot, the Section 357(c) trap, basis carryover under Sections 358 and 362, and how to preserve QSBS eligibility under Section 1202.
Section 263A forces producers and resellers above the $32 million 2026 gross-receipts threshold to capitalize warehouse rent, purchasing, and mixed service costs into inventory. Here is how the exemption, simplified methods, and Form 3115 method changes actually work.
