From the Ohio Bureau of Workers' Compensation news desk
June 15, 2017
Ohio’s economy will get a big boost in July. That’s when the BWC will send $1 billion in rebates to eligible Ohio employers, the first part of The Third Billion Back plan that was announced in March.
Employers: $1 billion Headed Your Way in July
Bureau of Worker's Compensation , Taxes - Corporate & Business , Business - Management, Issues & Concerns
REAL ID: What it is and how it will affect you
identity theft , Business - Management, Issues & ConcernsCredit: U.S. Department of Homeland Security
Secure driver's licenses and identification documents are a vital component of a holistic national security strategy. Law enforcement must be able to rely on government-issued identification documents and know that the bearer of such a document is who he or she claims to be.
The REAL ID Act is a coordinated effort by the states and the Federal Government to improve the reliability and accuracy of state-issued identification documents, which should inhibit terrorists’ ability to evade detection by using fraudulent identification.
What You Must Know if You Are Planning to Hire Employees in the Coming Weeks
Taxes - Corporate & Business , Business - Management, Issues & ConcernsIf you are an employer planning to add to your workforce, you need to know about the recent change regarding Form I-9, the Employment Eligibility Verification form. Form I-9 is compulsory for all employers to confirm every newly hired employee’s identity and that they are authorized to work in the United States.
5 Things Every Small Business Owner Should Do Before Dec. 31.
Taxes - Corporate & Business , Business - Management, Issues & Concerns , Richard Huszai, CPA , deductionsFor many small business owners, the fourth quarter signifies a final flurry of activity. Whether that is projecting inventory against sales or contemplating major purchases against anticipated revenue, for those who use QuickBooks software, it may seem as if the program takes care of the business loose ends on their behalf. As a result, business owners view the end-of-year task list as one less thing to think about in the middle of the night.
Gabe Adler Featured in Inside Business Magazine
business succession , Business - Management, Issues & Concerns"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.
Move South to Retire? Your Old Residence Could Still Tax You!
gift tax , Taxes - Planning, Rules and Returns , Business - Management, Issues & Concerns , Estates, Gifts & TrustsBy 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.
Reducing Gift Tax for Private or Family Owned Businesses
gift tax , Taxes - Planning, Rules and Returns , Business - Management, Issues & Concerns , Estates, Gifts & TrustsBy 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.
New Tax Penalty on Small Business Health Insurance
Affordable Care Act , Taxes - Corporate & Business , Taxes - Planning, Rules and Returns , Business - Management, Issues & ConcernsBy Howard Kass, CPA, CGMA, AEP®
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