Question 1

&#x2705; What do I include as Net Short-Term Capital Gain in Line 8 of Form 990-PF?

Accepted Answer

If your organization made a profit by selling or exchanging an asset that wasn't on your hold for more than a year, include them as a Net short-term capital gain for the year. read more

Question 2

&#x2705; What payment options are available to pay taxes when filing Form 990-PF?

Accepted Answer

A foundation can pay the taxes using the Electronic Federal Tax Payment System (EFTPS) or Electronic Funds Withdrawal (EFW). read more

Question 3

&#x2705; Can a nonexempt charitable trust be treated as a private foundation?

Accepted Answer

A non-exempt charitable trust or 4947(a)(1) is a trust treated as a private foundation if it has any unexpired interests devoted to charitable purposes for which a charitable deduction was allowed. read more

Question 4

&#x2705; What is calculated on Form 990-PF?

Accepted Answer

990-PF is usually filed by private foundations, and some of these foundations may have to pay an excise tax. Form 990-PF is used to calculate the amount of excise tax that has to payed by a private foundation. read more

Question 5

&#x2705; What are the types of foundations that must pay estimated tax?

Accepted Answer

Domestic private foundations that are described under section 511 and section 4940 are subjected to estimated taxes if the total estimated tax for a tax year equals or exceeds $500. read more

Question 6

&#x2705; Our foundation was established in August 2019. How do we file our 990-PF?

Accepted Answer

As an organization established in August 2019, you must file Form 990-PF electronically to the IRS. read more

Question 7

&#x2705; Should all the organizations pay an excise tax based on the investment income?

Accepted Answer

A domestic exempt private foundation that qualifies as an exempt operating foundation under section 4940(d)(2) doesn't have to pay an excise tax based on the investment income. read more

Question 8

&#x2705; How do I determine under which section my foundation has been terminated?

Accepted Answer

If your foundation has distributed all its net assets to one or more public charities without keeping any right, title, or interest in those assets, then the foundation has been terminated under Section 507(b)(1)(A) read more

Question 9

&#x2705; What information do I need to file Form 990-PF?

Accepted Answer

To file Form 990-PF, you'll need basic information like the organization's name and EIN as it is on the IRS records. read more

Question 10

&#x2705; What is considered as publicly-traded securities in Form 990-PF?

Accepted Answer

Securities that are regularly traded on an over-the-counter market or an established exchange are considered as publicly traded securities. read more

Question 11

&#x2705; What is a deferred compensation?

Accepted Answer

The deferred compensation is a process in which a portion of the income an employee earns is withheld and paid to the employee in a later stage after the employee receives the actual income. read more

Question 12

&#x2705; What should be entered as the Gross Sales of Inventory, Less Returns, And Allowances in Form 990-PF?

Accepted Answer

The revenue obtained from the sales of the goods without deducting the returns, allowances, and discounts should be entered as the Gross Sales of Inventory, Less Returns, And Allowances. read more

Question 13

&#x2705; Is there a maturity period for savings and temporary cash investments stated in Form 990-PF?

Accepted Answer

Savings and temporary cash investments, such as money market funds, commercial paper, certificates of deposit, and U.S. Treasury bills or other governmental obligations with maturity period only less than a year should be stated. read more

Question 14

&#x2705; What is meant by deferred charges?

Accepted Answer

Deferred charges are long term prepaid expenses that are carried as assets on the balance sheet until used. They usually emerge from a business making payment for goods or services that have not been received yet. read more

Question 15

&#x2705; What information must be mentioned in the schedule(s) while filling out the investments in Form 990-PF?

Accepted Answer

The schedule should list each security held by the organization at the end of the year and show whether the security is listed at cost or end-of-year market value. The amount shown on savings and temporary cash investments should not be listed. read more

Question 16

&#x2705; What are the actions to be performed before checking qualifying distributions?

Accepted Answer

The purpose of performing these actions is to make sure that the foundation complies with the rules. The action to be done is to read more

Question 17

&#x2705; How can I complete assets, liabilities, and, net assets and fund balance on 990 forms? (Use Case)

Accepted Answer

To file your annual return, you need to understand the concept of a balance sheet or a Statement of Financial Position in the nonprofit world. read more

Question 18

&#x2705; How to remove the net assets income from Part I, lines 6a and 6b in form 990-PF?

Accepted Answer

Capital gains and losses for the tax on investment income should be mentioned in Part IV. To add this, click Add Investment button in Part IV, enter the property details, and click Add to include this property information. read more

Question 19

&#x2705; What is capital gain/loss?

Accepted Answer

Anything that provides value or a profit to its owners falls within the broad definition of capital. The word "capital gain" describes the increase in a capital asset's value upon sale. Simply put, a capital gain occurs when you sell an asset for more than what you purchased for it. read more

Question 20

&#x2705; I have a few Contributions Paid During the Year and Approved for Future Payment. But the approval for future payments is still displayed in the Contributions, gifts, grants paid section.

Accepted Answer

You may have approved a few payments, and they are yet to be distributed to the respective people or organizations. read more

Question 21

&#x2705; How do I report Contributions, gifts, and grants paid in 990-PF?

Accepted Answer

There are 5 components to the Contributions, Gifts & Grants section. read more

Question 22

&#x2705; How to Complete the Balance Sheet on Form 990-PF? (Use Case)

Accepted Answer

The purpose of a Balance Sheet on Form 990-PF is to provide the IRS with a quick summary of your private foundation’s financial status. read more

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