We appreciate his dedication and hard work in growing the ARM Team!
Sending good wishes to you this Thanksgiving! Good food that fills your table, good health as you work hard, and good times with family and friends. May you have all the best delights in life. Happy Thanksgiving!
Don’t forget to enjoy some football! Go Buckeyes!
ARM is pleased to announce, effective 01/01/2022, Chelsea Williams will be promoted to Shareholder.
For this honor, we asked Chelsea to put down a few words about what this promotion means to her:
It was recently announced I would become a shareholder at ARM CPA as of 1/1/2022. I was asked by a teammate what this moment means to me. I thought to myself, “How could I possibly put into words everything that is going through my head?” The truth is… I can’t. No amount of words could ever fully express the gratitude and appreciation I have for the people at ARM.
Twelve years ago, ARM took a chance on a Capital University intern from Grove City, Ohio. Listed as prior work experiences included only blacktop seal coating, banquet server, and cabinet warehouse manufacturer. Neither the company nor I could have ever predicted I would become a shareholder in the firm one day. This originally was not a realistic goal of mine, but after a few years with the company it was, without a doubt, where I wanted to be. Nothing worth having comes easy or free. But it is a blessing to be able to work with people every day that I consider family.
I wouldn’t be the person, or in the position, I am today without my family. My family has and always will be my #1 priority. I was the lucky girl who got to marry the man she had a crush on in high school. My husband pushes me to be better and expect more out of myself. We have a smart and outgoing daughter who would take on the world at age six if we let her. My parents are amazing. They taught me that hard work, dedication, and a work ethic without excuses will prevail. Additionally, I have had both sides of grandparents, aunts, and uncles who have always been actively involved in my life. My brother grew up having to deal with my competitive nature. We teased each other to no end. However, he knows that he will always be my best friend.
I am extremely grateful for this opportunity. My presence, actions, and attitude will represent the name and brand that the leaders have blazed before me. I am excited for the chance to be a part of the legacy.
– Chelsea L. Williams CPA
As part of the state budget signed into law on June 30, 2021, additional funding for the Ohio Opportunity Zone Credit became available for the 2021-2022 biennium period. Similar to the prior two year period, a maximum of $50 million in credits will be awarded on a first-come, first-served basis.
What is the Ohio Opportunity Zone Tax Credit?
The taxpayer invests cash in the Ohio Qualified Opportunity Fund (“Ohio QOF”), which in turn must invest that money in a Qualified Opportunity Zone property in Ohio. Once the money is invested in the Qualified Opportunity Zone property (“QOZ Property”), the taxpayer is eligible for a non-refundable tax credit equal to 10% of the amount of its funds invested by the Ohio QOF in the QOZ Property. The taxpayer may invest in multiple Ohio QOFs and may receive tax credits totaling up to $2 million dollars during the 2021-2022 biennium period.
The Ohio Opportunity Zone Tax Credit is applied to the individual income tax, as outlined in the Ohio Revised Code Section 5747.02. The tax credit may be claimed for the Taxpayer’s qualifying taxable year or the next consecutive taxable year. For the 2020-2021 biennium, a total of $50 million in tax credit allocation in available.
Who is Eligible for the Ohio Opportunity Zone Tax Credit?
To qualify for the credit, a taxpayer must meet the following requirements:
- A taxpayer must be an individual, trust, estate or pass-through entity that elects to file a return on behalf of its investors. Note, a nonresident taxpayer could participate if they otherwise meet the requirements of a qualified investment.
- A taxpayer must make or have made an investment in an Ohio QO Fund.
- The Ohio QO Fund invests all or a part the taxpayer’s fund contribution in a QO Zone property in Ohio. Note, this program is separate from the federal program and a taxpayer need not invest capital gain dollars in the Ohio QO Fund to be eligible for a tax credit in Ohio.
- A taxpayer made an investment during the eligible period and is subsequently invested in QO Zone property situated in an Ohio Opportunity Zone by the Ohio QO Fund during the eligible period.
How to Apply
Taxpayers that have invested in an Ohio QOF must apply directly to the Ohio Development Services Agency (“Development”) for the tax credit. Applications can be submitted during the eligible peiod for investments made by an Ohio QOF in QOZ Property in Ohio. The application will be available through Development’s application portal and must be filed electronically. Development will review the applications in the order they are received, issuing the tax credit certificate allocation until all eligible applications are funded OR the $50 million in tax credits is fully utilized – whichever comes first.
For more information, visit:
The Treasury and IRS have proposed new regulations that will block high-tax states’ attempts to circumvent the new $10,000 cap on state and local tax (SALT) deductions.
The $10,000 limit on the SALT deduction was part of the Tax Cuts and Jobs Act, an overhaul of the tax code, which was passed last year.
New York, New Jersey and Connecticut — among the states with the highest property taxes — had put legislation in place to help taxpayers bypass the limit on the deduction.
Those plans included permitting municipalities to set up charitable funds and allowing taxpayers to contribute to them. This would allow taxpayers to donate to state-run charitable funds and receive a credit against their state tax bills while also deducting the charitable donation on the Federal income tax return.
However, the Supreme Court has held that a charitable contribution must be a transfer of money or property without adequate consideration. Meaning that there can be no benefit received with these transfers.
Therefore, under the proposed regs, a taxpayer who makes payments or transfers property to an entity eligible to receive tax deductible contributions would have to reduce its charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive. For example, if a state grants a 70% state tax credit and the taxpayer pays $1,000 to an eligible entity, the taxpayer receives a $700 state tax credit. The taxpayer would have to reduce the $1,000 contribution by the $700 state tax credit, leaving an allowable contribution deduction of $300 on the taxpayer’s federal income tax return.
The rule would also not apply for tax credits of no more than 15% of the cash paid to the state. Thus, for example, a taxpayer who makes a $1,000 contribution to an eligible entity would not be required to reduce the $1,000 deduction on the taxpayer’s federal income tax return if the state or local tax credit received or expected to be received was no more than $150.
If you would like to discuss these new regulations in further detail or any other tax planning, please give us a call.
ARM is hiring full-time staff auditors, a summer audit intern and a winter tax intern to join our growing firm! Full-time employment opportunities are available upon completion of successful internships. Check out our job postings on our website at www.armcpa.com/careers.
ARM will also be attending the upcoming Ohio University 2018 Business Conference on September 6th from 3pm – 6pm. Please be sure to stop by our booth to learn more about our current employment opportunities.
Under the new tax law, many taxpayers find themselves receiving more benefit taking the standard deduction instead of itemizing. This is due to several reasons, but most notably the law has changed the standard deduction available to $24,000 for taxpayers who are married filing joint plus another $1,300 per taxpayer who is over the age of 65. Another important factor is the taxes portion of the itemized deductions (state and local tax payments and real estate taxes) now getting capped at $10,000. Because of these changes, many taxpayers who donate to charity won’t receive tax benefit for their donations because they will still benefit by taking the standard deduction. If you donate to charity every year and still find yourself taking the standard deduction, there may be a great tax planning opportunity for you to take advantage of known as a donor-advised fund.
Example: You’re filing a married filing joint return. Let’s say your state and local tax payments plus your real estate taxes are capped at $10,000 and you have $8,000 of mortgage interest. This puts you at $18,000 of total deductions. Since the standard deduction is now $24,000, you wouldn’t receive tax benefit for the first $6,000 of charitable contributions. In other words, if you gave $6,000 or less every year to charity, you wouldn’t receive any tax benefit for those contributions. This is where the donor-advised fund comes into play. You could, for example, donate five years of contributions (6,000 x 5 = $30,000) into a donor-advised fund all in one year. Doing this, you would receive the $30,000 deduction in the year you donated to the donor-advised fund. Here’s what your deductions would look like:
Not using donor-advised fund:
Year 1 – Year 5: $24,000 per year = $120,000
Total = $120,000
Using donor-advised fund:
Year 1: $18,000 (mortgage and taxes) + $30,000 (contributed to donor-advised fund) = $48,000
Year 2 – Year 5: $24,000 per year (giving $0 to charity) = $96,000
Total = $144,000
Once the contribution to the donor-advised fund is made, the funds now belong to the charity since donor-advised funds are components of a qualified charitable organization. The charity has ultimate control over the distribution, but you can still advise the charity on who to distribute to, how much to distribute, and the timing of the distributions to the ultimate recipient. The charity will generally follow your recommendations and must retain discretion regarding the use of the funds.
If you would like to discuss donor-advised funds in further detail or any other tax planning, please give us a call.
Under prior tax law an athlete was able to maximize tax savings by strategically planning the payment of unreimbursed employee expenses including items such as agent fees, players association dues, clubhouse dues, etc. Unfortunately, recent tax reform eliminated the deductibility of unreimbursed employee expenses for all individuals. Using retirement plans to reduce the tax on outside endorsement income is a planning strategy that still remains for athletes.
The fact that the athlete may have coverage under a qualified retirement plan with the team does not prevent the athlete from establishing their own retirement plans on any self-employment (SE) income. However, amounts contributed to an athlete’s qualified plan maintained by the team or the league may affect the amounts that can be contributed to a retirement plan related to SE income. The athlete will rarely have any employees, so the choice and administration of a plan can be quite simple. Self-employed individuals without employees can adopt a qualified retirement plan, with or without a salary deferral 401(k) feature, a simplified employee pension (SEP) plan, a salary-reduction incentive match plan (SIMPLE plan), or an individual retirement account (IRA). Under the new tax law the maximum Federal individual income tax rate is 37%, thus this planning strategy can result in significant tax savings!
Looking for a way to reduce your tax liability? How about not paying sales tax for a weekend? Ohio’s annual sales tax holiday is just around the corner. The holiday starts on Friday, August 3, 2018 at 12:00 a.m. and ends on Sunday, August 5, 2018 at 11:59 p.m.
During the holiday, the following items are exempt from sales and use tax:
Clothing priced at $75 per item or less;
School supplies priced at $20 per item or less; and
School instructional material priced at $20 per item or less.
Let us know if you have any questions. Happy shopping!
2018 BKR International Americas Regional Meeting
La Romana, Dominican Republic
ARM was among the more than 50 global accounting firms gathered in the Dominican Republic for BKR International’s Americas Regional Meeting, May 19-22. ARM is an independent member of BKR International, a leading international association of accounting and business advisory firms. For more than 25 years, BKR has connected members and their clients with global experts and resources.
Focused on the theme of “Driving Change and Innovation,” the Americas Conference featured renowned speakers on cutting edge topics and trends, including technology disruption and artificial intelligence, cybersecurity, creating a team culture, and managing multiple generations. Monday kicked off with keynote speaker Tim Kight, a top leadership consultant, who shared what it takes to have a high-performance culture. Jeremy Wortman, PhD, led a workshop on building and implementing practical solutions that create high-functioning, multi-generational teams. On the international front, Economist Fernando Freijedo, from The Economist Intelligence Unit in New York City, provided insights on identifying the best global business environments for clients. The final keynote speaker, Milton Bartley, provided an insider’s view of ransomware and its evolution as one of the most dangerous cyber-crime operations today.
Marketing Director Delene Taylor at BKR member firm DMLO in Louisville, Kentucky, shared successful strategies for firm growth, and IT Expert Donny Shimamoto, with IntrapriseTechKnowlogies LLC in Houston, emphasized ways that human innovation can leverage the broad field of technology available to accounting firms today — and tomorrow. As part of afternoon breakout sessions, life strategies coach and consultant to CPAs, Lisa Tierney, presented strategies to facilitate the promotion of women leaders in accounting firms.
“We attend BKR events not only to keep up with the latest trends in accounting and technology, but to develop and expand relationships with our colleagues,” noted Eric Mulchaey. “Accounting is a people business; we’re continually interacting with our partners and our teams in the office as well as our clients out in the field. Meeting people face-to-face is critical in building strong relationships.”
BKR Americas Chair Karen Brenneman, CPA, MT, and managing partner of Hall, Kistler & Company LLP in Canton, Ohio, noted that meeting venues such as the Dominican Republic demonstrate the breadth of opportunity in the accounting profession. “We build connections across borders that expand our knowledge of technical competence and innovation. We’re part of a profession that is poised to drive change and influence prosperity on a global basis.”
BKR International is the sixth largest global association of independent accounting and business advisory firms, representing the expertise of more than 160 firms in over 500 offices and 80 countries. For more information, visit www.bkr.com or follow BKR on LinkedIn.