Professional Accounting Blog

    Accounting For Your Prosperity

    The U.S. Department of Labor Finalizes the New Overtime Rule

    Posted by Jonathan Ciccotelli on Oct 15, 2019 4:49:42 PM

    Topics: Tax Planning & Strategies

    The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than 4 million but was blocked by a federal district court judge.  

    The new rule is scheduled to take effect on January 1, 2020. Affected employers need to take prompt action to reduce the impact to their bottom lines.

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    IRS Releases Final QBI Real Estate Safe Harbor Rules

    Posted by Jonathan Ciccotelli on Oct 10, 2019 4:59:42 PM

    Topics: Tax Planning & Strategies

    Earlier this year, the IRS published a proposed safe harbor giving owners of certain rental real estate interests the opportunity to take advantage of the qualified business income (QBI) deduction. The QBI write-off was created by the Tax Cuts and Jobs Act (TCJA) for pass-through entities. The IRS has now released final guidance (Revenue Procedure 2019-38) on the safe harbor that clearly lays out the requirements that taxpayers must satisfy to benefit.

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    IRS Gives Additional Guidance on Bonus Depreciation Under the TCJA

    Posted by Meaden & Moore on Oct 4, 2019 11:17:18 AM

    Topics: Tax Planning & Strategies

    The IRS has released final regulations and another round of proposed regs for the first-year 100% bonus depreciation deduction. The Tax Cuts and Jobs Act (TCJA) expanded the deduction to 100% if the qualified property is placed in service through 2022, with the amount dropping each subsequent year by 20%, until it sunsets in 2027. (The phaseout reductions are delayed a year for certain property with longer production periods.) Of course, Congress could act before that to extend or revise the deduction. 

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    Succession Planning: Enjoying the Success of a Life's Work

    Posted by Jonathan M. Green on Sep 27, 2019 9:56:33 AM

    Topics: Family Business & Succession

    I believe that one of the most important responsibilities that come with owning a business is planning for its evolution. In many cases, this also means planning for the transition of its ownership and management. 

    Understanding the owner’s perspective on owning his business is critical to creating a successful transition plan.  In all cases, this effort should “begin with the end in mind”. 

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    7 Retirement Plan Committee Best Practices

    Posted by Michelle Buckley on Sep 27, 2019 8:00:00 AM

    Topics: Benefit Plan Advising & Auditing

    Many plan sponsors create oversight committees for their qualified retirement plans. These committees are frequently called “investment committees,” “administrative committees,” or, simply, “retirement plan committees.” The duties of these committees are significant, and will typically include:

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    Considerations for Selling Your Business

    Posted by Jim Rollins on Sep 25, 2019 12:05:00 PM

    Topics: Family Business & Succession

    I met a retired business owner at a party recently and he found out I was a CPA. Not that I normally use this as a conversation starter, but my brother mentioned it as he introduced me.

    As the night continued, we got to talking about his business and how he started it. What became clear was that he's very proud of what he had built. He sold his business 12 years earlier, but it was still an important part of who he was. As we got to that point, I asked him why he had decided to sell. He said there were consolidations going on in the industry at that time, and felt the industry was changing, and getting harder to compete in. He was then approached with an offer and it seemed like the right time to sell.

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    DeWine Signs House Bills Changing Ohio Income Tax Law

    Posted by Jonathan Ciccotelli on Sep 5, 2019 9:33:59 AM

    Topics: Tax Planning & Strategies

    House Bills 62 and 166 were signed by Ohio Governor Mike DeWine on August 23, 2019.  These bills will enact several important changes to the Ohio income tax law for the 2019 tax year.  These changes will apply to income tax returns due on April 15, 2020.  

    The upcoming tax changes are explained below:

    Tax rates

    • Ohio is combining the bottom three tax brackets.  The tax rate for the new configuration is 0%.  This means taxpayers with Ohio Taxable Nonbusiness income of $21,750 or less will pay $0 in Ohio income tax.

    • All Ohio income tax rates have been reduced by 4%. The top tax rate is now 4.797%.

    • There will be no adjustment for Ohio’s personal and dependent exemption amounts for 2019.  The 2019 adjustments will be the same as tax year 2018.

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    Advice for Buying Your First Business

    Posted by Lloyd Bell on Aug 30, 2019 7:30:00 AM

    Topics: Corporate Finance

    Henry Ford famously said, “Whether you think you can or can’t, you’re right.” When it comes to buying your first business, the ability to effectively run a business is a different skill set than what is required to complete an acquisition. As a result, many successful companies and/or executives underestimate the complexities involved in closing a transaction.

    By far the largest hurdle that first-time business buyers need to understand is that sellers don’t have to be rational. A buyer can develop all sorts of financial models projecting certain rates of return on various capital structures, but a seller rarely cares. Their internal rate of return is not calculated on a spreadsheet, but rather, by what they’ve been able to provide for their family and what they hope to enjoy in retirement. A successful transaction, therefore, must meet the personal goals of the seller while protecting the financial goals of the buyer.

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    IRS Announces Automatic Waiver for Estimated Tax Penalty

    Posted by Jonathan Ciccotelli on Aug 27, 2019 9:04:19 AM

    Topics: Tax Planning & Strategies

    On August 14, 2019, the IRS announced it would waive estimated tax penalties for eligible 2018 taxpayers.  This will effect around 400,000 tax filers who have already filed their 2018 federal tax return according to the IRS.

    If you have already filed your 2018 federal tax return and are eligible for the waiver, there is no need to contact the IRS or apply for the waiver.  The waiver will automatically be applied to your tax account by the IRS. 

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    Attention, Virtual Currency Owners: Pay Your Back Taxes - the IRS is Coming for You

    Posted by Jonathan Ciccotelli on Aug 22, 2019 4:15:10 PM

    Topics: Tax Planning & Strategies

    Taxpayers who own cryptocurrency should pay close attention to the IRS’s recent announcement. In July, the department announced they will soon crack down on taxpayers who fail to report their virtual currency transactions. Past activity will not be ignored. In this announcement, IRS Commissioner Chuck Rettig encourages taxpayers to meet their past tax obligations by amending prior returns and paying back taxes. 

    IRS Efforts

    Last month, the IRS sent over 10,000 educational letters that explain what transactions are taxable, when taxpayers should report their transactions, and how taxpayers can remedy past reporting oversights. The IRS has a history of helping taxpayers understand the ins and outs of the tax law, so these educational letters come as no surprise. In 2014, the department released a taxpayer notice explaining how virtual currency should be reported and how it will be taxed. Last year, they unveiled a Virtual Currency Compliance campaign that deployed training resources to the public and collected taxpayer feedback. And most recently, they announced that official guidance on the taxability of cryptocurrency transactions is forthcoming. Although the IRS’s chief concern is enforcement, taxpayer education is high on their priority list.

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