Professional Accounting Blog

    Accounting For Your Prosperity

    Why Should I Care About ESOPs?

    Posted by Michelle Buckley on May 16, 2019 8:00:00 AM

    Topics: Benefit Plan Advising & Auditing

    An ESOP is an employee stock ownership plan that is essentially a retirement plan which helps employees obtain ownership in the company. But why should you care? Well, ESOPs can be great options if you are a privately-held business owner considering succession planning. You have a few options available to you: 

    Family Business Succession Planning

    If you are a family-owned business, you might have your family already in place to take over the company. In this case, ESOPs are generally not the right fit. 

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    Builder’s Risk – Tax Credit Financing

    Posted by Patrick Kelleher, CPA, CFF on Apr 24, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    Federal tax credits are a crucial component for the development and preservation of affordable rental housing. Federal tax credit financing available to the construction industry was devised by Congress and state agencies as a way to encourage private investment in projects and businesses that provide a public benefit to underserved communities.  

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    Valuation Matters When a Company Is Liquidating

    Posted by Meaden & Moore on Apr 22, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    Even in a bull market, some businesses struggle to make ends meet. Eventually, owners may decide to close the doors and liquidate a distressed company’s assets. Outside financial experts can help owners make informed decisions about the distressed company’s future and maximize liquidation proceeds. Experts can also help potential buyers of financially distressed businesses determine the appropriate asking price and conduct acquisition due diligence. Here are the details on these types of engagements.

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    Which Is Appropriate: Lost Profits or Lost Business Value?

    Posted by Meaden & Moore on Apr 19, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    The U.S. District Court for the Middle District of Pennsylvania recently awarded damages for various business torts committed against a print shop by two former employees and the competing business they started. A key question was whether lost profits or lost business value was the appropriate measure of damages.

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    5 Steps to Calculate Lost Future Earnings

    Posted by Meaden & Moore on Apr 17, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    From personal injury to wrongful termination, there are many reasons an individual might seek to recover lost earnings. However, this is no simple matter – the level of analysis can be just as complicated as estimating lost profits for a business.

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    Thoughtful Charitable Planning Can Maximize Tax Savings Under the TCJA

    Posted by Karen McCarthy on Apr 16, 2019 2:39:12 PM

    Topics: Tax Planning & Strategies

    The amount you donate to charity can make an impact on the organizations you support while providing relief from federal income tax. Now that we have had a full year to review the impact of the Tax Cuts and Jobs Act (TCJA), charitable giving can still play a key role in your tax planning.

    The TCJA continues to provide tax benefits for charitable giving for those taxpayers who are able to itemize their deductions. In fact, charitable contributions are one of the few deductions that were enhanced under the Act, which increased the AGI limitation on cash contributions from 50% to 60%. The 30% limitation on contributions of appreciated assets still applies and contributions exceeding the limits may be carried over for up to five years. 

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    Uncertainty Looms Over Some Federal Income Tax Provisions

    Posted by Jonathan Ciccotelli on Apr 16, 2019 11:21:17 AM

    Topics: Tax Planning & Strategies

    Congress has yet to tackle several outstanding uncertainties frustrating both businesses and individual taxpayers. The Tax Cuts and Jobs Act (TCJA), for example, contains several “glitches” requiring legislative fixes. Congress also has neglected to pass the traditional “extenders” legislation that retroactively extend certain tax relief provisions that expired at the end of an earlier year, in this case 2017.  

    TCJA glitches

    The sprawling TCJA signed into law in late 2017 contains some inadvertent glitches that range from a lack of clarity to significant drafting errors. In some cases the glitches may produce unintended and costly consequences. Here are examples of two glitches that still need to be addressed and one that has been addressed recently:

    The “retail” glitch. This prevents retailers, restaurants and other businesses from enjoying 100% bonus depreciation on certain assets. Before the TCJA’s enactment, qualified retail improvement property, qualified restaurant property and qualified leasehold improvement property were depreciated over 15 years under the modified accelerated cost recovery system (MACRS) and over 39 years under the alternative depreciation system (ADS).

    The TCJA classifies all of these property types as qualified improvement property (QIP). QIP generally is defined as any improvement to the interior of a nonresidential real property that’s placed in service after the building was placed in service.

    Congress intended QIP that is placed in service after 2017 to have a 15-year MACRS recovery period and a 20-year recovery under the ADS. Because 15-year property is eligible for bonus depreciation, Congress also intended QIP to be eligible for that break.

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    Before Investing in New Technology, Take Stock of Existing Systems

    Posted by Jim Rollins on Apr 11, 2019 8:00:00 AM

    Topics: ERP

    Rapid advances in technology combined with a tight labor market are prompting increasing numbers of manufacturers to consider investments in automation.

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    More Insights on Job Shops and ERP Software

    Posted by Scott A. Holter on Apr 9, 2019 12:50:30 PM

    Topics: ERP

    This month we'd like to continue in our Job Shops series to give you more insights on Job Shops and ERP software. Click here to read Part 1. 

    Job shops are common to Northeast Ohio and the Great Lakes region.  Job shops cover a wide range of industries but have several common characteristics:  

    1. Products manufactured are generally to single customer’s design and need

    2. Small to medium-size customer orders

    3. Production occurs in small batches that is intermittent without the velocity of repetitive or continuous flow manufacturers

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    Guidance on Claiming 20% Rental Deduction

    Posted by Peter DeMarco on Apr 3, 2019 11:13:16 AM

    Topics: Tax Planning & Strategies

    The Internal Revenue Service recently offered welcome news to some business owners still sorting out the impact of the Tax Cuts and Jobs Act. 

    One of the key provisions of the tax reform law passed more than a year ago is a 20% deduction of qualified business income from each of a taxpayer’s qualified trades or businesses when operated as a pass-through entity, like a partnership, S corporation or sole proprietorship. As exciting as the deduction sounds, it also produced plenty of questions that the IRS needed to answer to enable people to understand how it would be applied in practice.

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