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January 31, 2018

CBIZ keeps you up-to-date about tax reform changes.

 

Vani Murthy, Tax Manager and Rich Scanland, Business Development Manager attended a panel discussion on “The Truth About Taxes” hosted by the City Club of Chicago on Jan. 31, 2018.




January 30, 2018

CBIZ keeps you up-to-date about tax reform changes.

 

Vani Murthy, Tax Manager, in the Chicago office attended a real estate CEO/Presidents Panel discussion hosted by the Kellogg School of Management and Guthrie Center for Real Estate Research where she networked with the panelists - C. Kevin Shannahan, CEO of Hines Midwest & Southeast Regions, Doug Kiersey, President of Dermody Properties, Mark Rose, CEO of Avison Young, and Laurie Price, CEO of CDI Construction. The event was moderated by Edgar Alvarado founder of EA Advisory LLC.




June 12, 2017

As you may have seen in the news, Kansas has retroactively repealed the exemption from taxation for flow-through income (including income reported on Federal Schedules C, E and F) beginning in 2017.  The bill does reinstate the deductions associated with this flow-through income, such as self-employment taxes, self-employed health insurance and pension contributions, which will help somewhat to lower the tax increase from the flow-through income.  However, the Kansas bill also retroactively increases individual income tax rates effective for 2017 and ends the “path to zero” income tax rates in Kansas which were scheduled to be phased in over the next few years.  The bill was vetoed by Governor Brownback but quickly overridden by the Kansas Legislature. 

For 2017, the previous income tax rates are increased by .3% and a new rate of 5.2% is established for individuals filing married filing jointly with taxable income over $60,000.  For all other individual taxpayers the 5.2% rate will apply to taxable income over $30,000.  Important to note:  the bill does provide that no penalties or interest will be assessed for any underpayment of taxes due to the changes in law, as long as the underpayment is paid on or before April 17, 2018.  As a result, you will likely be able to continue paying any estimated tax payments which have already been established.

Looking forward, the limit on certain itemized deductions is scheduled to be gradually increased from 2018 to 2020 such that 100% of mortgage interest and real estate taxes will be deductible in 2020.  For the year 2018, medical expenses will again become 50% deductible as part of this gradual phase in of increased itemized deductions. 

For most individuals, the new legislation will result in more income tax liability in Kansas.  As a result, Kansas flow-through entities should take steps to reduce the income flowing through to the shareholders/partners/members of these entities.  One immediate step which should be considered is whether the entity will qualify for any Kansas incentives.  We can schedule a meeting with our State Incentive Team to determine what incentives the company would qualify for in 2017 (including tax credits, training grants and other reimbursements).  If the company currently does not qualify, we can work with you to review and potentially restructure current processes and procedures to qualify.  Most of these credits and incentives are not retroactive so it is imperative to get the process started now!  For this and other tax planning or any questions on the recent tax act, please contact your local CBIZ tax advisor. 




March 29, 2017



January 17, 2017

CBIZ MHM is pleased to announce that Dave Janosek has transferred to the Tampa Bay practice as Managing Director.

Prior to moving to Tampa Bay, Dave spent 13 years as the Tax Practice Leader for the CBIZ Northern Ohio business unit. Dave will provide additional expertise to the rapidly-growing tax practice in Tampa Bay.

Dave will be focusing on providing tax and business advisory services to closely held businesses in diverse industry groups, such as real estate, hospitality, wholesale trade, private equity, professional services, and manufacturing.

Janosek received his Bachelor’s degree in Accounting and Finance from The Ohio State University. He is a CPA and a member of the AICPA and OSCPA.



December 14, 2016
The “Taxman” cometh in April; but it is wise to be prepared in December. The dreaded April 15th, when all those hard-earned dollars are due to Uncle Sam, is right around the corner. Manufacturing companies and their owners can and should take steps in December to minimize their tax burden in April. As we explore some of these year-end tax planning opportunities, it is important not to let the tax tail wag the dog; businesses should not spend a dollar to save 40 cents in taxes unless that dollar brings economic value to the company.

Before we delve deeper into tax planning opportunities, there are two underlying considerations: 

  • Coordinate business tax planning with individual tax planning: Most small to mid-market businesses are structured as pass-through entities (S-Corps/Partnerships /LLCs). Under these structures, the business does not pay income tax. The taxable income/loss of the business is reported on the owner’s individual tax return and the tax is paid at that level. As a result, it is critical to coordinate tax planning for a business with ownership tax planning.
  • Assess whether your income brackets are likely to change: As a general rule of thumb, businesses should accelerate deductions and defer income when tax brackets remain consistent year to year, or if the current year is in a higher tax bracket. If 2016 was a strong year, it is likely that you will want to accelerate deductions into 2016 and defer income into 2017. Conversely, if 2016 was a down year, the company would take the opposite approach.

Now let’s examine some of the various tax planning opportunities:

  • Timing of payments: Determine when to make related-party payments. Most related-party transactions (owner’s interest related-party rent, ownership bonuses, etc.) are treated on a cash basis. Companies should make these payments depending on if they want to accelerate or defer deductions.
  • Have your fixed asset ledger up to date: Due to Section 179 deductions and Bonus Depreciation, fixed asset additions create a tremendous opportunity to manage taxable income for assets purchased and placed in service before year-end. Although these determinations do not need to be made until after year-end, a company needs to know what impact tax depreciation will have on their taxable income while making other time-sensitive decisions.
  •  Managing your capital gains and losses: Capital gains and losses offset. If a pass-through business has generated any capital gains or losses, there should be coordination with the ownership’s investment advisors to explore opportunities to harvest capital gains or losses in the ownership’s personal investment portfolio.
  • Obsolete inventory: In general, manufacturers cannot take a deduction for obsolete inventory until it is physically disposed. If you have obsolete inventory that you have reserved for, dispose of it before the year-end to get the deduction.
  • Research and Development Tax Credits: The R&D credit provides significant tax savings to a significant number of manufacturers. If your manufacturing company does not take the R&D credit, double check to see if you qualify. If you are already
    taking advantage of the R&D credit, be sure to coordinate with your R&D expert regarding any changes in the laws and in your operations to maximize the credit.
  •  Explore creating an IC-DISC (Interest-Charge, Domestic International Sales Corporation): Manufacturers may be missing this lucrative U.S. tax incentive. Manufacturers that export (directly or indirectly) U.S. made goods may qualify for reduced tax rates on export profits. Because of the complexity involved with this tax strategy, many manufacturers are not taking advantage of this opportunity.
  • Don’t forget the bank: These tax planning strategies, along with others, can’t be considered in a tax planning vacuum. As always, manufacturers need to consider any impact that these decisions would have on their debt covenants with their lenders. Tax planning time is the perfect time to also review your compliance with bank covenants since many financial covenants are measured at year-end. There can be opportunities to coordinate tax planning and covenant compliance decisions. One example is the timing of tax distributions. If a company is planning on a significant tax distributions to ownership in early 2017 to cover 2016 tax liability, and the company could make those distributions in 2016 while still being in compliance with their bank covenants, consideration should be given to accelerating those distributions into 2016.

These are just a few of the various tax opportunities out there. The key to keeping taxes low in April is to make sure your ducks are in a row by December. Be sure to coordinate with your financial and tax advisors to minimize your tax obligations.

By Brian Barsi

BRIAN BARSI, CPA, is a Managing Director at CBIZ MHM and a Shareholder of Mayer Hoffman McCann P.C., an independent CPA firm. Brian has extensive experience serving mid-market clients primarily in the manufacturing and distribution industries, and leads the CBIZ MHM Minneapolis Manufacturing group. He can be reached at 612-376-1237 or bbarsi@cbiz.com.





November 10, 2016
Oct 30, 2016 
By Robert Karon

7 Tips on Achieving Zero-Tax Estate Planning Through Charitable Giving

Philanthropy has its advantages

How charitable should I be? What will my legacy be? What values can I teach my children and grandchildren? What do I have passion for? These are some of the questions clients start asking themselves in the autumn of their lives.

Estate planning is an intimate yet challenging process. Deciding who to entrust and bequeath your legacy to is among the largest decisions our clients will face in their lives. 

Many times clients feel that they've given enough to their children, or that even if they wanted to donate to charity, they don't know the intricacies involved. Regardless of the end result, clients always want to eliminate taxes from the picture and spend their savings as they choose, not as the government does. 


Robert Karon is a managing director at CBIZ MHM.

Click here to read the full article.





November 2, 2016

More than 50 CFOs, CEOs, Business Owners, and Financial Executives are gearing up for CBIZ & MHM’s Post-Election Tax & Business Update Roundtable to be held later this month at the Tampa Club

Four Tampa Bay executives are slated to wrap up the seminar with a Q&A session and give insight on key races and the expected impact on businesses post-election day.

Oscar Horton of Sun State International Trucks LLC

Oscar is the President & CEO of Sun State International Trucks LLC since 2000. With more than 25 years of experience at International Truck & Engine Corporation, Oscar has a proven record of managing organizational change and improving business efficiencies.


Steve Knopik of Beall’s, Inc.

Steve joined Beall’s, Inc. in 1984 as the Director of Finance and grew with the Company over the ensuing 22 years and advanced through a number of leadership roles before being promoted to Chief Executive Officer in 2006.




Steve Raymund of Tech Data Corporation

Steve has served Tech Data as a Director since 1986, Chairman of the Board since 1991, and CEO from 1986 through 2006. Steve is also a director of Jabil, Inc., where he is Chair of the Audit Committee, and a director of WESCO International, Inc., where he serves on the Audit and Executive Committees. Steve has substantial experience, knowledge, and relationships within the IT distribution channel that allow him to provide value related to finance, management, supplier and customer relationships, operations, and risk.

Kris Wiebeck of Baldwin Risk Partners

 

Kris joined Baldwin Risk Partners (BRP) in 2015 as Chief Financial Officer. He oversees finance, mergers and acquisitions, accounting and legal for all four BRP brands. Kris works with BRP leadership to continue delivering best-in-class insurance and risk management services, optimizing operating results and leading external growth opportunities.


 For more information and to register:
http://www.cbiz.com/postelectiontampa




October 20, 2016

CBIZ MHM is pleased to announce the appointment of Nathan Smith to CBIZ’s National Tax Office (NTO), the central resource for the CBIZ MHM tax practice.  The NTO provides technical training, updates on new and changing legislation, consulting on complex matters, and oversight of the practices’ quality assurance measures. Through these activities, the NTO takes a leading role in generating tangible planning ideas and solutions and producing thought leadership materials to assist our clients in achieving their desired goals.

Prior to joining the NTO, Nathan spent more than 13 years as a Tax Senior Manager for the Tampa Bay office focusing on tax consulting and compliance for large corporations and partnerships. Nathan will be returning as a NTO Director and will have a wide variety of responsibilities including the following:

  • Researching and analyzing industry and Federal tax developments
  • Leading the development of practice aids and tactical approaches to responding to industry and Federal tax developments in a variety of subject matter areas
  • Strategizing with Managing Directors regarding tax planning in connection with existing client service plans, including facilitating client service teams in the client opportunity planning process
  • Leading data mining initiatives to identify segments of the client base that are ideal candidates
For questions regarding how the NTO helps our firm and can assist your business, please contact Nathan Smith at Nate.Smith@CBIZ.com.



October 19, 2016


As part of CBIZ & MHM’s Executive Roundtable Series, the Tampa Bay office is hosting a Post-Election Tax & Business Update roundtable. 2016 will be the 58th Presidential Election for the United States, and the only certainty is that we will have a new president for the next four years occupying the White House.

This seminar will discuss the potential impact the election results have on tax reform and other prominent business issues. Bill Smith, Managing Director for CBIZ MHM’s National Tax Office, along with a panel of local key executives will provide their opinions and insight on key races and the expected impact on businesses post-election day.

The seminar will take place November 16th at the Tampa Club and will qualify for 2 hours of CPE credit.    

For more information and to register:
http://www.cbiz.com/postelectiontampa

Stay tuned for future posts about our panelists and topics leading up to the event.



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