As a CPA firm specializing in the private lending space, we often advise our clients on the proper treatment of loan origination fees. These fees, typically charged by lenders to process and underwrite a loan, carry important implications for both financial reporting (GAAP) and income tax reporting (IRS). Below are the key differences between GAAP […]
Opportunity Zones Are Making a Comeback
Exciting news for investors and business owners: Qualified Opportunity Zones (QOZs) are back in action, thanks to a new piece of legislation called the One Big Beautiful Bill Act (OBBBA). This law permanently reauthorizes the QOZ program, with some important changes that could offer tax-saving opportunities for years to come. If you’ve invested in […]
CPA 150 Credit Hours Requirement
What is the reasonable amount of prerequisites for licensing? As with any professional designation, there are many steps to becoming a Certified Public Accountant (CPA) in the United States. Licensing is controlled at the state level. Since 1988, most US states have required individuals to have 150 credit hours from a qualifying institution prior to […]
Understanding Land Banking and the Taxes Involved
The concept of Land Banking refers to buying land with the plan to holding it while the value appreciates and selling later for a profit. It seems straightforward, but with taxes involved, things can quickly become complex. The key question is whether the profit you make gets taxed as ordinary income (which can be a […]
The Transformation of Accounting: ASC 326 and the Evolution of Loan Loss Reserves for Private Money Lenders
The arrival and implementation of ASC 326, the Current Expected Credit Loss (CECL) model, has stirred a philosophical discussion about the nature of accounting and the goals of those who shape accounting standards. For lenders, ASC 326 has not only brought about a change in the way they calculate and disclose loan loss reserves, it […]
Navigating LA Wildfire Deferrals: What You Need to Know
If you’re a resident or business owner in Los Angeles County affected by the recent wildfires, relief is on the way when it comes to tax deadlines. Thanks to various emergency tax deferrals, you have additional time to file your taxes without facing penalties or interest. Here’s a breakdown of the key tax deferrals available […]