A new accounting standards update (ASU) requires all entities that produce financial statements to make a few changes to their classification and disclosures of restricted cash. These changes have multiple effects on not-for-profits and affordable housing properties, including HUD projects.
The key to making the 168(h) election is to be aware that you can only file it with the GP’s and the not-for-profit’s first tax returns. As long as you set up the partnership the right way and file a written election statement with the IRS, the election will last for the life of the partnership.
For affordable housing properties and not-for-profit organizations, changing the year end date can be part of a strategic plan to better serve those the organization supports. However, this transition can be confusing, and it helps to have the most up-to-date financial statements to help guide decisions.
To get the most from your lawn care service, you need to map out your expectations of the type, quality, and extent of service before signing a contract with the company. Getting quotes from competitors every few years is another helpful way to ensure your price isn’t too high.
Balancing your daily responsibilities and answering an auditor’s request list can be competing interests, but gathering those documents as early as possible will save you and your organization time and hassle during the audit.