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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.

Three Ways to Lower Your 2018 Taxes

As you race to get all your shopping, wrapping and baking done in time for the holidays, you may want to set aside some time to think about your tax return. Some action now could wind up saving hundreds or maybe even thousands of dollars when you go to file your tax return next spring. Gilmore Jasion Mahler Tax Partner Charlie Heid shared some suggestions on WTOL-11, including three ways to lower your taxes before the end of the year. 

#1: Bunch or bundle your charitable contributions

With the new higher standard deduction, which is now $12,000 for individuals and $24,000 for joint filers, smaller charitable donations will no longer get you that tax break that they used to. Many more people will now be taking the standard deduction, and itemizing their deductions won’t apply.

You don’t have to stop giving to charity, just change up your timing a bit. For example, rather than donating $15,000 a year, bump that up to $30,000, but do it every other year instead.

#2: Finalize the divorce

Another change that the new tax law brought will affect anyone going through a divorce right now.  

The big impact will be for the person who will be paying the alimony once the marriage is over.  

If you’re in the process of a divorce and still finalizing the agreement, be aware that December 31, 2018 is a critical deadline… if you finalize the divorce before the 31st any alimony paid can still be deducted, and alimony received is still considered taxable income. After December 31, that alimony paid will no longer be deductible, nor will it be taxable for the recipient of the alimony. So if you’re in the process of a divorce, and you’re the one who will pay alimony, you want to get it finalized before the end of the year.

#3: Feed the 401k

You can protect a good portion of your income from taxes by moving it into a 401k. You won’t pay tax on the money until it is withdrawn during your retirement. You’re allowed to contribute up to $18,500 to your 401k this year. If you’re over 50, you can contribute up to $24,500.

If you don’t have a 401k you can put the money into an IRA. The great news with the IRA is that you have up until April 15th of 2019 to move the money to that IRA and still have it count as a 2018 contribution.

One final thought: If you sold any investments this year and made money, you may be looking at paying capital gains tax… you could take a look at any of your holdings that show a loss and sell them to offset the gains. If you have more losses than gains, you might be able to deduct the difference, up to $3,000 per year.

Tax Partner Charlie Heid contributed this blog. He joined Gilmore Jasion Mahler in 2002 and brings decades of experience to his clients. Charlie serves individuals as well as business clients across many industries, including manufacturing & distribution, retail and construction. He shares timely information on tax and money issues monthly on WTOL's Your Day.

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 outsourced 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

Act Soon To Take Advantage of New Business Tax Credit

Your business could qualify for a new tax credit created when the Tax Cuts and Jobs Act was signed into law at the end of 2017. The Employer Credit for Paid Family and Medical Leave (Section 45S of IRS Code) applies to certain employers who offer paid family and medical leave to their employees. It’s only around for this tax year and next (at least for now), so take advantage of it while you can.

Does your business qualify?

There are certain requirements in place for businesses interested in claiming this tax credit, including:

A written policy in place that meets certain requirements including:  

  • At least 2 weeks paid family and medical leave a year to all qualifying full time employees (prorated for part time employees)
  • The paid leave can’t be less than 50% of the wages normally paid to the employee

Which employees qualify?

  • Employed for a year or more
  • For 2018 credit: employee can’t have made more than $72,000 from the employer

What qualifies for family and medical leave in order to qualify for the tax credit?

  • Birth of a child/care for the child
  • Adoption or foster care placement
  • Care for spouse, child, parent with serious health condition
  • Serious health condition making employee unable to perform his/her job
  • Family member or employee called to active duty
  • Care for a service member who is a spouse, child, a parent, next of kin

What now?

Evaluate your company policies regarding the Family Medical Leave Act (FMLA). You still have time to create a company policy regarding family medical leave. You can also change your existing policy or include additional policies to fill in the gaps needed in order to qualify for and take advantage of the tax credit for 2018. The credit will apply retroactively for family/medical leave already taken in 2018 by qualifying employees. The policy just needs to be in place by and have an effective date of December 31, 2018.

We’ve already spoken to some clients about this tax credit, and expect more conversations in the weeks to come. Now’s the time to figure this out with your tax advisor so you’re not up against the deadline and can actually enjoy ringing in the New Year.

Jessica Nunn contributed this blog. Jessica is a manager in the tax department with nearly 10 years of public accounting experience at Gilmore Jasion Mahler, LTD.  She specializes in for-profit entities, with a concentration in manufacturing & distribution.  

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.

Don’t Overlook This Tax Credit

Mary Jo Pitzen is a senior manager in the Gilmore Jasion Mahler tax department. She works with clients across many industries, but has a focus on the construction industry. Mary Jo is also a board member for the Toledo chapter of the National Association of Women in Construction (NAWIC).

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.

IRS Clarifies New Pass-Through Rules

Finally, some long awaited guidance has arrived from the IRS on the rules that benefit owners of pass-through businesses, or businesses whose owners report the business income on their personal tax returns.

Proposed regulations have been issued for the Code Section 199A pass-through or Qualified Business Income deduction. This deduction benefits many owners of sole proprietorships, partnerships, trusts, and S Corporations and allows for a deduction of 20 percent of their qualified business income. However, the 20 percent deduction isn’t available for some so-called Specified Service Trade or Businesses (SSTBs). The IRS is now out with more specifics on which businesses would be classified as these Specified Service Trade or Businesses (SSTBs). We have highlighted below the Specified Service Trade or Businesses (SSTBs) that appear to have had the most demand for clarification.   

Health Services:

Provision of medical services by individuals such as physicians, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists and any other similar healthcare professionals performing services in their capacity as such who provide medical services directly to a patient (service recipient). This does not include the provision of services not directly related to a medical services field, even though the services provided may relate to health of the service recipient. For example, operation of health club or health spas, payment processing, or the research, testing, and manufacture and/or sales of pharmaceuticals or medical devices.

Legal Services:

Performance of services by individuals such as lawyers, paralegals, legal arbitrators, mediators and similar professionals. This does not include the provision of services that do not require skills unique to the field of law. For example, the provision of services by printers, delivery services, or stenography services.

Consulting Services:  

The provision of professional advice and counsel to clients to assist the client in achieving goals and solving problems. This does not include the performance of services other than advice and counsel, such as sales or economically similar services or the provision of training and educational courses. The determination of whether a person’s services are sales or economically similar services will be based on all the facts and circumstances of that person’s business. Such facts and circumstances include, for example, the manner in which the taxpayer is compensated for the services provided. This does not include the performance of consulting services embedded in or ancillary to the sale of goods or performance of services on behalf of a trade or business that is otherwise not an SSTB (such as typical services provided by a building contractor) if there is no separate payment for the consulting services.

Other Services:

Any trade or business where the principal asset of such trade or business is the reputation or skill of one or more employees or owners (any trade or business that consists of any of the following, or any combination thereof):

  1. Receives fees, compensation, or other income for endorsing products or services
  2. Licenses or receives fees, compensation or other income in the use of an individual’s image, likeness, name, signature, voice, trademark, or any other symbols associated with the individual’s identity
  3. Receives fees, compensation, or other income for appearing at an event or on radio, television, or other media
  4. Receives fees, compensation or other income including the receipt of a partnership interest and the corresponding distributive share of income or the receipt of stock of an S Corporation

There’s been much chatter about how to restructure SSTBs to allow them to benefit from the deduction, but the IRS has made it clear that’s not going to fly and has added new regulations to combat such tax planning strategies. As a result, an SSTB also includes any business that provides 80% or more of its property or services to a specified service business if there is 50% or more common ownership of the businesses. Also, if there is the common ownership above and the business provides less than 80% of property or services, the portion of the property or services provided will be treated as an SSTB, meaning that the income will be treated as income from an SSTB.

The regulations also address the issue of aggregation, or pulling all commonly owned entities into one business entity to benefit from the 20 percent pass-through deduction.

When can you aggregate? The IRS has provided some rules to provide multiple business owners with benefits in complying with certain statutory limitations of the 20% pass-through deduction. Aggregation is elective, not required.

The regulations say trades or businesses can be aggregated only if you can prove the following:

  • The same person or groups of persons, directly or indirectly, owns 50% or more of each trade or business to be aggregated
  • The ownership described above exists for the majority of the taxable year in which the items attributable to each trade or business to be aggregated are includible in income
  • All of the items attributable to each to be aggregated are reported on returns with the same taxable year, not taking into account short taxable years
  • None of the trades or businesses to be aggregated is a Specified Service or Trade Business (SSTB)  
  • The trades or businesses to be aggregated satisfy at least two of the following three factors:
  1. The trades or businesses provide products and services that are the same or customarily offered together
  2. The trades or businesses share facilities or share significant centralized business elements, such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources
  3. The trades or businesses are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group (for example, supply chain interdependencies)

These are just some of the key clarifications in the regulations, which we can rely on until final regulations are published. The regulations do answer many of the questions that we had and provide some surprises, but they also pose some new questions as well.  

We know it’s a lot to absorb! As always, we encourage you to reach out to your GJM team with any questions.

GJM Tax Partner Dave Baymiller contributed this blog. Dave has over 35 years of public accounting experience. His focus is federal, state and local tax.

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.