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Posts By: Zinner & Co. Tax Team
Zinner & Co. Partner wins Rainmaker Award

Zinner & Co. Partner wins Rainmaker Award

by | 29 Jun | , , ,

Zinner & Co. LLP Partner Susan Krantz, CPA, CGMA, was honored with a prestigious Rainmaker award as the Nonprofit Certified Public Accountant (CPA) member of the year.

Presented during the Rainmaker Companies’ annual SuperConference, held in Indianapolis from May 31 through June 2, the award is given annually to a member best described as someone who is a constant source of value to other members. Other criteria include an individual who engages in group activities and contributes to the success of the alliance through leadership, collaboration and the sharing of resources and best practices.

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Rethinking retirement contributions

Rethinking retirement contributions

by | 20 Jun | , ,

iStock-469974361The Tax Cuts and Jobs Act of 2017 generally lowered federal income tax rates, with some exceptions. Among the ways in which lower rates impact tax planning, they make unmatched contributions to traditional employer retirement plans less attractive.

Example 1: Chet Taylor has around $100,000 in taxable income a year. Chet contributed $12,000 to his company’s traditional 401(k) in 2017, reducing his taxable income. He was in the 28 percent tax bracket last year, so his federal tax savings were $3,360 (28 percent of $12,000). An identical contribution this year will save Chet only $2,880, because the same income would put him in a lower 24 percent bracket.

Not everyone will be in this situation.

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Proposed legislation supports unlimited above-the-line charitable contribution deduction

by | 20 Jun | ,

iStock-898841732A proposed bill has the potential to put taxpayers in a charitable mode.

U.S. Rep. Chris Smith (R-NJ) and U.S. Rep. Henry Cuellar (D-TX) recently introduced the “Charitable Giving Tax Deduction Act,’ a bipartisan bill that would make charitable tax deductions “above-the-line,” allowing taxpayers to write off charitable donations without limitation, whether or not they choose to itemize.

The proposed bill would address concerns that changes made by the Tax Cuts and Jobs Act will result in fewer taxpayers itemizing their deductions, reducing the tax incentive to make charitable contributions. 

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“Kiddie Tax” impacted by Tax Cuts and Jobs Act

“Kiddie Tax” impacted by Tax Cuts and Jobs Act

by | 24 May | , , , , , , ,

Many higher income taxpayers have long made it a practice to open investment accounts for their children, hoping to take advantage of their lower tax rates.  Many years ago, Congress imposed, what is colloquially known as the “kiddie tax” to place strict limits on the amount of investment income that can be taxed at those lower rates. 

One of the changes made by the recently enacted Tax Cuts and Jobs Act of 2017 made some significant changes to how the “kiddie tax” is administered, impacting the way adults pass investment income on to their minor children. 

iStock-697929154_blogThe “kiddie tax” is a provision that taxes the unearned income of children under the age of 19 and of full-time students younger than 24 at a special rate. Under both the new law and the old, the first $1,050 of a child’s income is tax-free and the next $1,050 is taxed at a rate of 10 percent.

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The new tax law will change divorce tactics

The new tax law will change divorce tactics

by | 24 May | , , , , , ,

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Next year, the rules will change, and the roles will be reversed.

Under divorce or separation agreements executed in 2018, and for many years in the past, alimony payments have been tax deductible. Moreover, these deductions reduce adjusted gross income, so they may have benefits elsewhere on a tax return. While the spouse or former spouse paying the alimony gets a tax deduction, the recipient reports alimony as taxable income.

iStock-694511684_blogShifting into reverse

Beginning with agreements executed in 2019, there will be no tax deduction for alimony. As an offset, alimony recipients will not include the payments in income.

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No tax deductions for business entertaining

No tax deductions for business entertaining

by | 24 May | , ,

The good news is that the Tax Cuts and Jobs Act of 2017 lowered corporate tax rates from a graduated schedule that reached 35 percent to a 21 percent flat rate. The bad news? Many business expenses are no longer tax deductible. That list includes all outlays that might be considered entertainment or recreation.

As of 2018, tickets to sports events cannot be deducted, even if you walk away from the game with a new client or a lucrative contract. The same is true if you treat a prospect to seats at a Broadway play or take a valued vendor out for a round of golf. Those outlays will be true costs for business owners without any tax relief.

iStock-510632851_blogDrilling down

Does that mean that you should drop all your season tickets supporting local teams? Cancel club memberships? Pack away your putter and your tennis racquet? Before taking any actions in this area, take a breath and crunch some numbers.

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About Us

Since 1938, Zinner has counseled individuals and businesses from start-up to succession. At Zinner, we strive to ensure we understand your business and recognize threats that could impact your financial situation.

Recent Blog Posts

SECURE 2.0 Act of 2022 provides student debt relief plan

January 17, 2024 at 9:55 AM

While student loan forgiveness was a hotly debated topic throughout the past year, one piece of legislation was passed to help those with student loan debt get out from under it faster. Language in the SECURE 2.0 Act of 2022 has the ability to allow employers to...

New Treasury rule limits EV Tax Credits to 19 vehicles

January 16, 2024 at 3:09 PM

On Jan. 1, new rules targeting the origin of electric vehicle battery materials from countries considered hostile to the U.S. went into effect and limited the number of EVs eligible to receive U.S. tax credits. As part of the Inflation Reduction Act, the guidelines...

Nonprofit Parking Tax Repealed

January 16, 2024 at 1:57 PM

Recently passed legislation will benefit nonprofit organizations by repealing an unpopular unrelated business income tax (UBIT) on expenses of nonprofits that provide transportation fringe benefits to their employees. The “Parking Tax,” which was imposed under I.R.C....

IRS ERC Voluntary Disclosure Program requires 80 percent payback

January 10, 2024 at 11:41 AM

In late December, the Internal Revenue Service launched a new Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing Employee Retention Credit (ERC) claims in error. According to the IRS website, the program runs...

Ohio Sales Tax Holiday begins Aug. 4

December 1, 2023 at 4:38 PM

Ohio’s annual sales tax holiday is right around the corner. This year’s weekend-long temporary tax break will begin Aug. 4 at midnight and end Aug. 6 at 11:59 p.m. Initially introduced in 2019 to provide relief for families preparing for the back-to-school season, the...

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