This post is just a summary of the more interesting articles I’ve read about tax and finance over the past few days.
According to this article published yesterday (April 26, 2015) on NBC News, the Clinton Foundation had errors on its tax return. The errors weren’t of the calculation sort, but were due to misidentified income. I’m fairly certain that someone will lose a job over this, especially since this is the beginning of the Clinton presidential campaign and there is NO room for errors that may make the organization look unethical or careless.
The takeaway lesson? Grant money IS NOT a charitable donation. Identify it properly!
Next, an article posted by Accounting Today highlights the tax effect of the marijuana business. 27 states and the District of Columbia have legalized marijuana usage in some form, though it is still considered a controlled substance under federal law. Marijuana businesses get taxed on their income as gross income (similar to gambling winnings and alimony) instead of net income (like businesses that aren’t selling controlled substances). This means higher taxes for marijuana retailers- unless they get creative with their taxes. There is also speculation that any providing tax advisory services to a marijuana business could be found in violation of federal law, as they may be found to participating in “aid[ing], abet[ting], counsel[ing], command[ing], induc[ing] or procur[ing] the commission of a federal offense”. Tax preparation isn’t so problematic, as it is done AFTER business transactions have occurred. It’s tax advisement (which occurs BEFORE the taxes are filed) that may punishable by federal law.
The takeaway lesson? A good tax preparer may help marijuana retailers avoid a heavy tax burden, but tax advisors could get in hot water over their advice.
Say it isn’t so! Hershey’s stock is down and they are hurting. CNN reports that Hershey has recently purchased several other companies, including Mauna Loa, the macadamia nut processors (imagining the tasty treats that can come from that merger). Unfortunately, Hershey isn’t making any money off of those purchases yet. Nestle, however, has seen a 10% overall in stock value, due to the euro weakening and making chocolate production cheaper.
The takeaway lesson? The US dollar is up, the euro is down, and even though Hershey is suffering, this is a great time to take a trip to Europe (perhaps you can enjoy some more affordable Nestle products while you’re there).
That’s my quick recap of the most interesting articles I’ve seen over the past couple of weeks. Look out for even more fun stuff in May, including some great FREE gifts to subscribers!