2021 was another impactful year for the Bennett Thrasher (BT) Foundation, despite the challenges of the COVID-19 pandemic. The Foundation continued to support non-profits in our community via monetary grants and volunteer opportunities for associates and we are proud to share the FY2021 BT Foundation Annual Report, which highlights these activities.
Bennett Thrasher (BT) is proud to share that it has established a Diversity, Equity and Inclusion (DE&I) endowment with the Bennett Thrasher Foundation to support DE&I initiatives in the communities in which our associates live and work. BT is excited to announce its initial grant of $300,000 in conjunction with the Firm’s celebration of Black History Month.
The Tax Cuts and Jobs Act (TCJA) permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. For example, taxpayers can no longer deduct any of the cost of taking clients out for a round of golf, to the theater or for a football game. Taxpayers responded to these changes by implementing changes to accounting systems and reimbursement policies to comply with new rules. But the TCJA didn’t specifically address the meals, beverages and snacks that often accompany entertainment activities, leaving some taxpayers with questions.
In October 2021, the Financial Accounting Standards Board released Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies how to properly account for deferred revenue in a business combination. This change was a long time coming after opposing views began to debate the proper treatment of deferred revenue after ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (also, ASC 606) went into effect.
In most tax jurisdictions, debt is viewed more favorably than equity as interest is typically deductible while dividends are not. To combat this strategy, many tax jurisdictions will impose restrictions on the deductibility of interest. The US has rules that limit business interest deductions and these restrictions are tightening in 2021.
In most tax jurisdictions, debt is viewed more favorably than equity as interest is typically deductible while dividends are not. To combat this strategy, many tax jurisdictions will impose restrictions on the deductibility of interest. The US has rules that limit business interest deductions and these restrictions are tightening in 2021.
The amount of people making money playing esports like Fortnight, League of Legends, Rocket League, Smite, Halo, CS:GO or content creating via Twitch, YouTube, Azubu, etc. continues to grow at an extraordinary pace. According to a recent article on dotesports.com, the payout for the top 50 streamers from August 2019 to October 2021 was around $1 million a year to $10 million a year.
The amount of people making money playing esports like Fortnight, League of Legends, Rocket League, Smite, Halo, CS:GO or content creating via Twitch, YouTube, Azubu, etc. continues to grow at an extraordinary pace. According to a recent article on dotesports.com, the payout for the top 50 streamers from August 2019 to October 2021 was around $1 million a year to $10 million a year.
Individuals who have retired may expect that their taxes will become simpler than they were prior to retirement, with little or no need for tax planning. While in some cases this may be true, often there are new and more complex issues that require careful consideration and consultation with advisors.
Happy New Year! For more than 40 years, Bennett Thrasher has provided tax and financial advisory services to clients navigating the obstacles that come with growth and an uncertain landscape. We are looking forward to 2022 with renewed optimism and fortitude.
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