Community & Economic Development
Upcoming Increase in Single Audit or Program-Specific Audit Thresholds
For audits of fiscal years beginning on or after October 1, 2024, the Office of Management and Budget (OMB) will raise the threshold for requiring a single audit or program-specific audit from $750,000 to $1,000,000. Non-Federal entities receiving less than $1,000,000 in federal funds annually will no longer be required to undergo a single audit, […]
Nonprofit Challenges in Navigating Tax Issues
Nonprofit organizations are often thought to be tax exempt. But this is a misnomer, as there are many situations where a nonprofit may have to either pay or collect and remit tax. Private foundations, also under the umbrella of 501(c)(3) nonprofit organizations, are subject to a 1.39 percent net investment tax on their investment income […]
Guidance: CECL Standard for CDFIs
The long-awaited Current Expected Credit Losses (CECL) Standard, Accounting Standards Update 2016-13 – Financial Instruments-Credit Losses (Topic 326) will be effective for nonpublic business entities and not-for-profit entities for fiscal years beginning after December 15, 2022. This means CECL will be effective for the calendar year 2023 reporting period and fiscal year 2024 for off-year […]
Affordable Housing Sponsors Approaching LIHTC Property Transitions
The Low-Income Housing Tax Credit (LIHTC) program, enacted in 1987, has been paramount for financing the construction and rehabilitation of properties in low-income communities. The credits are claimed by the investor over a period of 10 years, with a 15-year Federal compliance period. Additionally, there is an overall 30-year restricted use-period with the state housing […]
Inflation Reduction Act Benefits Affordable and Low-Income Housing Developers
AAFCPAs would like to make real estate clients aware of important credits and incentives defined in the Inflation Reduction Act (IRA). One of the key takeaways of the IRA for real estate developers in the renewable energy sector is the 10-year extension of the Investment Tax Credit (ITC) under Section 48 while increasing the credit […]
AAFCPAs’ Cyber Security Pros on Agenda at Strength Matters Conference
AAFCPAs’ IT Security Professionals Alex Santiago and Vassilis Kontoglis will share advice on overcoming cyber security challenges of a remote workforce at the Strength Matters Financial Management Conference, September 6-9 in New Orleans. The COVID Pandemic challenged businesses to think about operations in a new way, and in many cases, IT teams were required to […]
Low Income Housing Tax Credit Program Extensions
AAFCPAs would like to make clients aware that on January 11, 2022 the IRS issued Notice 2022-05 which further extends the temporary relief from certain requirements for low-income housing tax credit (LIHTC) projects, originally extended earlier in 2020 & 2021 due to the COVID-19 pandemic. For your convenience we have outlined some of the key […]
IRS Clarifies 4% Floor Ruling for LIHTC
AAFCPAs would like to make clients who engage in Affordable Housing projects aware of recent IRS Revenue Rulings 2021-20 and 2021-43, which aims to clarify the eligibility of Low-Income Housing Tax Credit (LIHTC) projects to qualify for the new 4% floor ruling. The IRS has published three situations listed below: Situation 1 A project is […]
Guidance on New Lease Accounting Standard
In 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) to increase transparency and comparability of lease transactions. AAFCPAs has summarized some of the most significant changes resulting from the new ASU for your convenience: AAFCPAs has provided a detailed Whitepaper providing guidance on the FASB’s new Lease standard so clients may proactively […]