Qualified Improvement Property (QIP) is an asset classification for certain property improvements made to the interior of a nonresidential real estate building. The improvements must be installed after the taxpayer placed the building in service and have a 15-year tax life. QIP can be depreciated using both bonus and section 179 depreciation—these methods allow taxpayers…
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How Mortgage Loan-level Pricing Adjustments (LLPAs) Work
A mortgage loan-level pricing adjustment (LLPA) is an adjustment to the costs involved with getting a home loan. LLPAs are usually based on the characteristics of a loan—such as the loan amount, property type, down payment amount, credit score, and occupancy type. The amount of the adjustment can vary based on the loan program and…
Best Commercial Real Estate Loan Rates In 2024
Getting the best commercial real estate loan rate will depend on your qualifications as a borrower and the loan type you’re looking to get to finance your real estate investment. Rates will vary depending on the lender and loan details, so it’s best to consider several options. Commercial real estate loans can be obtained from…
What Are Nondeductible Business Expenses?
Examples of nondeductible business expenses include business gifts over $25, business entertainment, and half of the cost of business meals.
From personal experience, I can attest that the IRS is fairly vigilant about disallowing expenses that do not meet the criteria for deduction. Deductible business expenses must be both ordinary and necessary. This means that deductible expenses should be customary for the industry in which the business operates, and the expenses should be useful. Expenses…
What Is a Chart of Accounts & a Sample Numbering System?
A chart of accounts is one list of all of your company’s accounts. Similar to a filing cabinet for your company’s accounting system, it’s used to organize transactions into groups. In a chart of accounts, you’ll typically find an account number, account name, description, account balance, and account category. Account categories include assets, liabilities, equity,…
What Is a Tax Credit vs Deduction? Difference & Calculation
Federal tax credits and deductions both reduce tax owed, but each provides tax savings in a different way. Tax deductions reduce the income subject to tax. Tax credits reduce the tax owed on the income and, in some instances, may result in a refund even when no tax is owed. Determining Your Marginal Tax Rate…
What Is DEI Training? Types, Importance, and What to Include
Diversity, equity, and inclusion (DEI) training is an educational course or program within a company that allows employees to learn about and experience the backgrounds and cultures of their colleagues. This type of initiative promotes awareness, inclusion, and understanding of the diverse backgrounds of all individuals. Diversity, equity, and inclusion in the workplace are defined…
Recruitment Funnel: What It Is, How It Works & Metrics to Track
What Is a Recruitment Funnel? A recruitment funnel is a structured process that guides candidates through seven stages, from awareness to hiring. This funnel begins by attracting potential candidates and narrows down to selecting the most suitable ones for the job. The recruitment funnel works by filtering out unqualified candidates at each stage, ensuring that…