Year end tax planning Helping members help their clubs
ECLUB NEWS |
As discussed through a recent series of articles on budgeting in this newsletter, private clubs should be preparing formal business plans to support their fiscal planning each year. Part of any business plan should involve a consideration of external and internal factors that may present threats or opportunities to the club’s plans. Evaluating threats to a club’s revenue stream is particularly important when it comes time to budget for the year ahead. Members spend discretionary dollars to join or support their private club and clubs therefore should be aware of any threats that could reduce the spending power of their members.
Clubs can take a proactive approach to ensuring members have access to the information needed to protect and increase the dollars they have to spend at their club. Year-end planning is a bigger challenge this year than in past years due to the uncertainty surrounding the possible expiration of some or all of the Bush-era tax cuts, the imposition of new so-called Medicare taxes on investments and wages, doubts about the renewal of many individual and business tax incentives, and the threat of massive across-the-board spending cuts. Clubs should be factoring the impact of these issues into their business plans, as well as offering knowledge solutions to their members.
Given the interdependency that exists between the disposable income of members, their understanding of tax requirements and the long-term effect these factors have on private clubs, the management and leadership of clubs are welcome to review and share with members a few new resources from McGladrey.
The 2013 edition of the McGladrey Tax Planning Guide is now available online. It covers year-end planning considerations and focuses on aligning year-end techniques with those uncertainties created by Congress’s delay in addressing sunsetting tax rates and the extension of major tax benefits.
In addition to this resource, McGladrey recently conducted two webcasts on the topic of year-end tax planning. One focused on the needs of mid-sized businesses while the other was geared more toward individuals and family businesses. The recordings are both webcasts are available online for anyone who missed them or would like to revisit what was said.
As always, McGladrey advisors welcome any specific questions readers might have.