When Congress took up the task of adopting a federal budget, nobody expected the effect it would have on partnership taxation. In fact, though, in passing the Bipartisan Budget Act of 2015 (the Budget Act), which President Obama signed into law on November 2, 2015, two provisions were included affecting partnerships and their partners, as follows –
read more…
Now that we have a year of the ACA under our belts, and employers are now beginning to deal with complying with the Employer Mandate, this is a good time to review the reporting requirements that are being borne by individuals and employers. While individuals have had a year to get used to their compliance requirements, employers are now entering unfamiliar territory.
read more…
The IRS recently announced an extension of due dates for information reporting requirements both for filing with the IRS and for providing forms to individuals under the Affordable Care Act (ACA) for health insurance carriers, self-insured employers and payroll service providers. For these filers, the due date extension provides additional time to compile the required information, as well as to furnish and file the ACA reporting forms for the 2015 calendar year. 
The deadline for filing 2015 Form 1095-C (offer of health coverage) and Form 1095-B (report of health coverage) has been extended from February 1, 2016 to March 31, 2016. In addition, the deadline for submitting electronic 2015 Forms 1094-C and 1094-B (employer transmittal forms) has been extended from March 31, 2016 to June 30, 2016. If not filed electronically, the deadline has been extended from February 29, 2016 to May 31, 2016.
Posted by: Robert O’Neil, CPA
read more…
By Tax Services Department
I once had a wealthy client who was a private business owner that wanted to gift a vacation home to his children. Based on prior gifting, to transfer the property outright, he would have incurred a 40% gift tax rate on a portion of the value of the home because the fair market value was in excess of their remaining gift tax exemption. 
As his advisor, we had discussed his long-term financial goals and created an Ohio limited liability company so the vacation home could be deeded into the LLC. Since the home was now an LLC asset, he had a qualified professional perform a valuation of the LLC.
Assigning several “discounts” for the value of the LLC , when he transferred the LLC ownership to the children, he was able to reduce the fair market value of the vacation home by using a 30% discount per the valuation. This simple planning allowed him to transfer the vacation home to his children without incurring any gift tax.
Needless to say, valuation discounts are a very important and significant component of estate planning. The two main discounts are lack of control and lack of marketability.
Lack of Control
Typically, when ownership of a family business is gifted to family members of a lower generation, the control stays with the older generation by the use of voting and non-voting stock. While the IRS originally maintained that valuation discounts for minority interests (lack of control) were not available, the IRS changed its position in 1993, in Revenue Ruling 93-12.
Lack of Marketability
In addition, a discount for a lack of marketability has been allowed because the Family Limited Partnership (FLP) units are not sold in the stock or other open market and are not easily valued. The lack of marketability discount is available because of the difficulty of selling “hard to value” assets. This opened the door for FLPs and family limited liability companies (FLLCs) to become very useful estate planning tools.
By the Tax Services Department
You’ve finally made the decision to become one of “those people.” 
You know, the person who, as was drawing closer to retirement (and coincidently, during one of the never-ending sub-zero days of winter), decided that living somewhere south of the Mason-Dixon line just made sense. You meticulously planned to move south to retire. But, before you settle back in the lounge chair twirling the paper umbrella as it shades your Pina Colada, you may want to ensure you have all of your assets in order.
Posted by: DeAnna Alger, CPA
read more…Posted by: DeAnna Alger
read more…Jack Borkey Sr. established Professional Electric Products Company (PEPCO) in 1968 and has achieved great success with his family owned and operated company ever since. Jack is a scheduled panelist for a discussion on “The Transition Process – Planning for the future” during the 2012 Family Business Conference, sponsored by Zinner & Co.
read more…
“SUCCESSION PLANNING REQUIRES THINKING ABOUT THE ENDGAME AND THE STRATEGIES NECESSARY FOR A WIN-WIN TRANSITION.” – Gabe Adler
Download the entire article as featured in the December, 2015 Hall of Fame issue of Inside Business Magazine.
Gabe Adler, CPA, CGMA, Partner, has 36 years of experience in the public accounting field with a concentration in accounting, auditing, succession planning, tax, and mergers and acquisitions. Gabe’s client base includes owners of family owned and small businesses, closely-held companies and professional service firms. Versatile among many industries, Gabe has also earned industry respect for his specialty service in the real estate industry, having counseled and advised countless real estate owners, managers, and developers to create their real estate tax strategies.
read more…
Zinner & Co. is pleased to continue its support and sponsorship of the Magic of LightsTM, being held at the Cuyahoga County Fairgrounds in Berea, Ohio from November 27, 2019 through January 4, 2020. Magic of LightsTM has become a yearly tradition for many...
Governor Mike DeWine has signed a bill into law that will allow Attorneys and Lobbyists to take the Business Income Deduction (BID) deduction.The law was backed by the Ohio Society of CPAs, and was viewed as a fix to a part of the biennial budget that was thought to...
The IRS issued its annual inflation adjustments for key tax items for the tax year 2020. Among them are new amounts for standard deductions. For the tax year 2020, the standard deduction for a married couple filing jointly will be raised from $24,400 to 24,800. For...
The IRS has announced that the contribution limits for Flexible Spending Accounts (FSA) contribution limits have been increased to $2750 for the plan year beginning 2020. The limit is being raised from the 2019 limit by $50. If you have any questions regarding...
The IRS has released the retirement contribution limits for the 2020 tax year. The new limits are adjusted based on increases in the cost of living. 2020 2019 401(k), 403(b), 457(b) deferral limits $19,500 $19,000 401(k), 403(b) catch-up deferral limits...
Send us your questions and we’ll share our insights with you on our blog!