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GJM Staff Announcements

Gilmore Jasion Mahler, LTD (GJM) has announced some key promotions and new staff members that strengthen the Firm and its leadership team. The promotions are effective January 1, 2019.

Judy Anderson Gilmore Jasion MahlerJudy Anderson and Matt Cavanagh are promoted to partner. Anderson, a Toledo native and graduate of The University of Toledo has been with the firm for 11 years. She has over twenty years of experience in public accounting and in the healthcare industry. A member of Gilmore Jasion Mahler’s healthcare and outsourced accounting group, she works with many of the Firm’s healthcare clients providing practice management and consulting services.  

Matt Cavanagh Gilmore Jasion MahlerCavanagh, a Bowling Green native and BGSU graduate, joined Gilmore Jasion Mahler in November of 2005. Also a member of the Firm’s healthcare team, Matt’s focus is healthcare services. His expertise is in ambulatory surgery centers, outsourced accounting, practice management and modeling.

“Judy and Matt are already valued members of our leadership team,” says Gilmore Jasion Mahler Managing Partner Kevin Gilmore. ”Their hard work and dedication have strengthened our healthcare specialty and the Firm as a whole. I’m thrilled to see them both reach partner level.”

Nikki Clement Gilmore Jasion MahlerThe Firm also announced some other key promotions. Partner Nikki Clement has been named managing partner of Gilmore Jasion Mahler’s Findlay office. Partner Mike Brough will lead growth efforts for the Findlay office. Nikki Clement's focus is the utilities industry. She specializes in accounting for regulated utilities.

Mike Brough Gilmore Jasion MahlerMike Brough works across a number of industries including manufacturing & distribution, government, and nonprofit operations.

Steve Miller is being promoted to senior manager. Both Ryan Avery and Ryan Emerson are promoted to supervisor and Nick Jackson is promoted to senior associate.

Earlier in the year, Diane Stretten and Mary Jo Pitzen were promoted to senior manager. Andrea Jennex moved up to supervisor in the GJM Findlay office. Ben Lochbihler was promoted to manager and Corey Selhorst, Lauren Grana and Clay Barron were all promoted to senior associate.

The Firm also brought on well over a dozen new employees in 2018 to further strengthen GJM’s administrative team and client service. They include Elijah Blackburn, Alyssa Essert, Alexandria Frances, Courtney Haas, Nicole Hartranft, Jennifer Henning, Dana Herr, Thomas Keyser, Jessica Knepper, Dylon Lause, Wendy Long, Tim Merkel, Madeline Mielcarek, Caleb Neeper, Joe Osentoski, Tina Rochowiak and Logan Sager.

“I couldn’t be happier with the staff we have in place headed into 2019,” says Gilmore. “When you have great people, great things happen. I’m excited to see what we can accomplish at a team.”

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

State and Local Sales Tax Turned Upside Down

The U.S. Supreme Court has issued its highly anticipated decision in South Dakota v. Wayfair, overruling Quill’s physical presence sales tax nexus standard. This decision will have significant implications for almost all industries, but especially consumer products (retailers) and industrial products.

With a new sales tax nexus standard established, more states will require all businesses that sell within their borders to collect that state’s sales tax. About a dozen states have already addressed this issue.

However, Wayfair has created many more questions than answers. Adapting your business to the new sales and use tax landscape will take time, even though you may need to react quickly.

Gilmore Jasion Mahler is here to help you sort through the changes and impact on your business. We encourage you to reach out to any of our tax partners to discuss how you’re impacted.

A member firm of the RSM US Alliance, we would also like to share with you an RSM alert U.S. Supreme Court kills Quill physical presence on the ruling that we hope you find helpful.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory and healthcare management. The Firm's professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities

Changes to 529 College Savings Plans

Charlie Heid interviewed on WTOL with Amanda FayA popular tool for parents trying to save for their child’s college education is now even more helpful for families. Gilmore Jasion Mahler’s Charlie Heid tackled the topic during his monthly appearance on WTOL’s “Your Day.” It’s called a “529” plan and is basically like a 401K, but it saves for your child’s education instead of your retirement. It’s an investment account that allows families to let money grow tax free to help pay for a child’s college education. It’s become a popular savings tool to ease the financial burden for parents who want to pay for their child’s college education.

The new tax law now allows families to use up to $10,000 a year in 529 funds for elementary and high school costs as well as college costs.

Some more good news is that the tax deduction you can take has also doubled in Ohio from $2,000 per child to $4,000 per child. That change was part of the budget bill passed last year in Ohio. The Michigan deduction is $5,000.

There is no annual limit for contributions to a 529 plan, but keep in mind you or a family member (like your kids grandparents) can give up to $15,000 a year (or $30,000 per married couple) to your child’s 529 account without having to pay any federal gift tax.

While these are state-run plans, you don’t have to use the 529 plan for your state. You may find you like the rate of return better on an out of state plan.

529 plans pay for college related costs (and now high school and elementary school costs) including:

  • Tuition
  • Mandatory fees
  • Room and board

Be aware, there are fees associated with 529 plans, so you need to ask questions and inquire about potential administrative fees or an application fee. Sometimes these fees can be waived, for example, if you maintain a certain balance, or agree to electronic only document delivery. Also be aware that a 529 plan could impact your child’s eligibility for financial aid based upon need.

529 plans are sponsored by states, state agencies, or sometimes educational institutions. There’s a nice website collegesavings.org established by the National Association of State Treasurers called the College Savings Plan Network with some good information. You can search info on any state’s 529 plans.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory and healthcare management. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Gilmore Jasion Mahler Experts Explain New Tax Law

crowd of over 300 people at GJM tax education eventThe Tax Cuts and Jobs Act signed into law on December 22, 2017 has businesses and individuals around the country trying to get a handle on how the new law affects them. Northwest Ohio is no exception. Many are looking for direction from Gilmore Jasion Mahler (GJM) tax experts. Should they change the classification of their business to take advantage of the new 21% corporate tax rate? How have business deductions changed? What does the new standard deduction mean for their families?

Hundreds turned out for GJM education sessions on the new tax law held in both Maumee and Findlay the first week of February. Tax partners Charlie Heid, CPA and Steve Schult, CPA presented on the big changes for individuals and businesses. Their presentations were followed by a GJM panel of tax experts who tackled some questions on the new tax law's impact.

The GJM panelists included: Tax Partners Dave Baymiller, CPA, Deanna Hall, CPA, Kathi Iott, CPA, Chuck Stumpp, CPA, and Jaimee Weaver, CPA. GJM Managing Partner Kevin Gilmore, CPA welcomed the attendees to the sessions.

“The law passed quickly, just before Christmas and people and businesses haven’t had much time to get a handle on its impact,” says Gilmore. “The new law is anything but tax simplification. We knew our education sessions would help people get a better grasp, but we’ve encouraged all of the attendees to reach out to their tax professionals to discuss their individual situations.”

Major changes for businesses within the Tax Cuts and Jobs Act include:

-Corporate tax rate reduced to a flat 21%

-Corporate Alternative Minimum Tax (AMT) repealed

-Pass-through businesses (businesses that pass their income through to the personal level for tax purposes): 20% deduction of income. Effective tax rate on qualified income will be reduced to 29.6%  

-Sec. 179 limit increased to $1M from $510,000 for property in service after 12/31/17.

-100% bonus depreciation for qualified property acquired and placed in service after 9/27/2017 and before 1/1/23.

-Limits on business interest deduction

-New restrictions on deduction of fringe benefit expenses:

  • Entertainment expenses are now nondeductible
  • Business meals remain deductible at 50%
  • Meals provided for the convenience of the employer are reduced to 50% deductible, but only through 2025

-NOLs (Net Operating Losses): 2-year carryback repealed, 20-year carry forward changed to indefinite, 80% taxable income limitation on usage

-Tax credits retained include:

  • Research and Development Tax Credit
  • Work Opportunity Tax Credit

Among the changes for individuals under the new tax law:

-Standard deduction essentially doubled (through 12/31/25) to $24,000 (filing jointly) and $12,000 for individuals.

-Itemized deductions no longer allowed include:

  • Tax prep fees
  • Investment advisory fees
  • Unreimbursed employee business expenses

-Itemized deductions also impacted:

  • State and local taxes still deductible, but now limited to $10,000
  • Mortgage interest now deductible only on the first $750,000 in debt for primary or secondary homes

-Affordable Care Act individual mandate penalty eliminated

-Child tax credit increased to $2,000 for children under 17

-Alimony is not deductible or includable in income related to divorces after 12/31/18

-Estate Tax is not repealed

Dave Baymiller answers a panel questionMany of those attending the education sessions were looking for some clarity on the new rules for pass-through businesses. GJM Tax Partner Dave Baymiller says those pass-through businesses that qualify for the 20% deduction include:

  • Partners in partnerships/LLC’s
  • "S" corporation shareholders
  • Sole proprietors (reported on Schedule C)
  • Rental real estate (reported on Schedule E)

He says there are some limitations depending on your taxable income.

“The 20% deduction is limited based on taxable income level, amount of compensation paid by business and/or amount of business property owned,” says Baymiller. “The deduction limitations for what are called specified service businesses are much more severe.”

Baymiller says many businesses are also looking for clarification on what qualifies as a “specified service business”. He says they include:

  • Healthcare professionals (physicians, nurses, dentists)
  • Lawyers, accountants
  • Financial, brokerage, investing, and investment management services
  • Consultants
  • Any business where the principal asset of such business is the reputation or skill of one or more of its employees or owners (the IRS has not issued any guidance on how to interpret this)

If you're looking for more detail, Dave has written a more in depth article on the impact of tax reform on pass-through entities. GJM’s Tax team says many businesses are also trying to determine if they should consider converting from an "S" corporation to corporation (or "C" corp) to take advantage of the reduced corporate tax rate. An "S" corp is a pass-through business in which income "passes through" to the owner's personal tax return. A corporation or "C" corp would be subject to corporate taxation.

It sounds like a simple question, but the answer is anything but simple. Tax Partners Deanna Hall and Chuck Stumpp walked through an example for attendees of a business with a million dollars of taxable income that factored in:

  • Taxes paid at corporate level
  • Taxes paid at shareholder level
  • Taxes paid on cash withdrawn from the business (federal tax on "S" Corporation distributions or federal tax on corporate dividends)

“What we wanted to show is that every business is different,” says GJM Tax Partner Deanna Hall. “Depending upon a number of factors it could make sense for your business to incorporate to take advantage of the new low corporate tax rate, but it may not. That’s why it’s so important to talk to your tax advisor to come up with an individualized plan.”

Many attendees said they walked away with a much better idea of the impact of the Tax Cuts and Jobs Act on their personal and business tax strategy. GJM presenters made it clear that every situation and every business is different, and stressed the importance of a one on one discussion with your tax professional. GJM tax experts are already having these important discussions with clients to ensure the smartest tax strategy for 2018. Learn more about GJM’s approach to tax strategy.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory and healthcare management. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Save on Back-To-School Shopping During Upcoming Sales Tax Holiday

Ohio sales tax holiday 2017Hope you haven’t done all your back to school shopping for the kids already, because you have an opportunity to save some money next week.

August 4th – 6th is Ohio's sales tax holiday, which means you can buy certain clothing and school supplies without paying sales tax. Teachers can save on classroom supplies, too. But, of course there are some rules that apply. Gilmore Jasion Mahler CPA Charlie Heid did his homework on the 2017 tax holiday, and shared some key information on WTOL's Your Day.   

Rule number one: price matters on these items. For clothing, the item needs to be priced at $75 or less. School supplies need to be $20 or less. For teachers: school instructional material needs to be $20 or less

What items qualify? The Ohio Department of Taxation has a very detailed list on its website. But some examples of the clothing & school supply items that will be sales tax-exempt include:

Clothing items ($75 or less)

  • Shirts
  • Pants
  • Skirts
  • Uniforms
  • Shoes
  • Boots
  • Jackets

School Supplies ($20 or less)

  • Binders
  • Book bags
  • Notebooks
  • Pens
  • Lunch boxes

There are a lot of items that don’t qualify for the exemptions, including items used for a business, clothing accessories, hair accessories and sports equipment.

Other important rules people need to know:

The exemption is item by item, so, for example, if you bought five articles of clothing that were each under $75, your entire purchase would be tax-exempt.

One common question: If you bought something that was $80, would the “first” $75 of that purchase be exempt? No, if the item costs over $75, standard sales tax is due for that item.

Internet sales qualify if you order and pay for the item and the retailer accepts the order between August 4-6, even if delivery is made after the sales tax holiday. This also applies to sales by telephone, mail and email.

Can stores opt not to participate? No… this sales tax holiday is the law and all stores have to comply.

Sales tax holiday specifics: It starts Friday, August 4th at 12:00 am and ends Sunday, August 6 at 11:59 pm. So, something important to remember for online sales: if you buy something from an online retailer in another time zone, be careful. The time zone of the seller’s location is what determines eligibility for the tax exemption. The Ohio Department of Taxation uses this example: if you bought a $50 shirt online at 1 am on Friday, August 4th from a California retailer, it wouldn’t qualify, because it would actually be 10 pm Thursday, August 3rd in California at the time of the purchase.

Learn more about the Ohio Sales Tax Holiday for 2017 with these frequently asked questions from the Ohio Department of Taxation.