Courtney E. Foltz

McGrath North is sponsoring and conducting our 14th Annual Seminar for Accounting Professionals in Omaha, Nebraska.  

Nebraska is currently one of six states that imposes an inheritance tax when a resident of the state passes away. The inheritance tax does not currently apply to transfers to a surviving spouse. However, for transfers to other immediate family members (e.g., children, grandchildren, siblings, parents, etc.), the inheritance tax rate is 1% on the fair market value of the property that passes to each applicable beneficiary over an exemption amount of $40,000 per beneficiary. If any assets pass to more remote relatives (such as aunts, uncles, nieces, and nephews), the inheritance tax rate is 13% on such transfers over a $15,000 exemption amount per beneficiary. For transfers to unrelated persons, the inheritance tax rate is 18% on transfers over a $10,000 exemption amount.  

As we approach an election year, many nonprofits may find themselves in a position that they want to, or are asked to, support particular issues or candidates. However, Section 501(c)(3) specifically states that no substantial part of an exempt organization’s activities can involve carrying on propaganda, or otherwise attempting to influence legislation, and that the exempt organization may not, directly or indirectly, participate in or intervene in any political campaign, including the publishing or distributing of statements on behalf of, or in opposition to, any candidate for public office. If the exempt organization engages in substantial legislative activities or any political campaign activities, the organization risks having its exemption revoked.  

The Tax Court once stated, “trying to understand the various exempt organization provisions of the Internal Revenue Code is as difficult as capturing a drop of mercury under your thumb.”