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GJM “Wanderlust” Scheduled for November 1

Gilmore Jasion Mahler Wanderlust 2019If you are appreciative of our veterans and their service to our country, you have the opportunity to say thank you. Sponsorships and tickets are now available for Gilmore Jasion Mahler’s “Wanderlust 2019: A Night in Casablanca.” The event is Friday, November 1, 2019 at Findlay’s beautiful Marathon Center for the Performing Arts. 2019 brings a new name and theme for the GJM event (formerly known as Carnevale), but the cause remains the same. Flag City Honor Flight is funded completely by donations and all proceeds from the evening will go directly to the nonprofit to help in its mission to fly veterans to Washington, DC to visit the memorials built in their honor.

The festive evening will offer a night of fun in a recreated Rick’s Café Americain, the nightspot made famous in the classic film “Casablanca” starring Humphrey Bogart and Ingrid Bergman. Attendees will enjoy live entertainment, a live auction with auctioneer Trent Farthing, a Moroccan-themed menu and even get the chance to dress up like Bogey and Bergman for a photo op. Fans of the movie are also welcome to get in on the fun theme and dress in their best Humphrey Bogart outfit: that signature fedora and trench coat, or white tuxedo jacket from the film. Or maybe Ingrid Bergman-style fashion from the movie. The popular live auction returns with "experience-based" packages including a signature trip to Costa Rica for a weeklong stay in a luxury hilltop villa overlooking the Pacific coastline.

Gilmore Jasion Mahler is seeking corporate and individual sponsors for the 2019 event. A number of sponsorship levels are available. Tickets to the event are $70 each. You can learn more about the event, including sponsorships on our Wanderlust event webpage.

Since GJM began holding the special event, Flag City Honor Flight has been able to expand and now offers two flights per year for veterans instead of one. The nonprofit’s executive director Deb Wickerham says there are many area veterans left to serve.

“Calls continue to come in to us from families asking if they can get their loved one on a flight,” says Wickerham. “We want to be able to say yes to each of them and give these men and women a final “tour of duty” with honor. Wanderlust 2019: A Night in Casablanca will help us do that.”

“We are so proud to have been able to support Flag City Honor Flight with our event,” says GJM Managing Partner Kevin Gilmore. “I had the opportunity to go out to the airport with others from our firm to help welcome home the veterans from a recent flight. It was pretty incredible to see the look on their faces when they saw their heroes welcome. The experience reinforced for me how important it is to support Flag City Honor Flight in its mission.”

GJM recently started offering a poster making station at the welcome home celebration as well, which has proven very popular with families awaiting the arrival home of their loved ones. Family members and other supporters are able to personalize their welcome home messages to the veterans, making the celebration even more meaningful. Flag City Honor Flight’s 2019 flights are June 11th and September 24th.

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 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

Your Kids & Money

teaching kids about moneyAre you setting your kids up for financial trouble? Experts say if you’re not talking to them about money, you certainly aren’t helping…  So, how can we teach our children to be responsible with money?

Gilmore Jasion Mahler CPA Charlie Heid recently shared some ideas during his monthly appearance on WTOL.

So how young is too young to start talking to your kids about money, and what are some good ideas for parents? Charlie says in his opinion, the earlier you can teach them, the better. Some research has shown that kids as early as 5 to 7 years old understand the concept of money and are already forming the money habits that will stay with them into adulthood.

Show your children what saving looks like

There’s plenty that you can do as parents to instill good habits. Start with showing your kids what saving money looks like. Financial expert Dave Ramsey suggests that you use a clear jar to teach your kids about saving. They can see with their own eyes as the jar fills up… and if they spend money, they see the jar empty out. A piggy bank doesn’t allow them to actually see the money collecting in there.

Set an example

Charlie's next suggestion: Be aware of your own behavior. What are your personal spending habits? Your kids are watching you. If you’re charging on a credit card or impulse buying at every turn, your children are noticing. If you set a healthy financial example, your children will pick up on that too.

Rethink the “allowance”

Charlie challenged parents to get rid of the concept of allowance, or at least rethink it. Instead, he said, have your kids earn money for doing chores around the house. It will help them to understand that money isn’t just handed to us, we have to earn it.

Charlie Heid WTOL kids and moneyHere are Charlie’s other suggestions he shared on the air:

Challenge your kids to wait to buy something: Some experts recommend the one-day rule. If your child really wants to buy something… ask them to wait at least one day to think about it and weigh the decision, it gives them a chance to really think it through, and to avoid the impulse buy.

Instill the value of giving back. Let your child pick a charity the family can support. It will help them understand the value of doing good for others.

Grocery shopping as a lesson in money: Before you go to the store establish a budget, search together for coupons and make a grocery list. Only buy what’s on the list. Help them to understand that you can’t buy things just because you want them… For example, if they want 2 packages of cookies, explain that you don’t need both, so they can choose one or the other.

For teenagers, here are some thoughts:

  • It’s a good time to open their first bank account. This is a good opportunity to have them track their money, deposit birthday and holiday money. If it’s an interest-bearing account, they can see their money grow.
  • Educate them about credit – they need to understand that borrowing on credit involves interest.
  • Be open about household financials. If you’re comfortable sharing with the kids how money comes in, what bills it pays, etc. they’ll have a better understanding. Even if you make a poor financial decision, sharing the consequences openly with your children will help them learn from your mistakes. If you’re not comfortable talking real numbers, you could just convey using percentages: we spend 20 percent of our income on food, 10 percent in charitable donations, etc.
  • Let them stumble. If your child wants to spend all their saved-up birthday money on something and you think it’s a bad idea, consider letting them go ahead with the purchase and see the consequences of the decision. And don’t step in and replace the money for them, so they can learn from the mistake.  

CPA Charlie Heid is a partner specializing in tax services, who joined Gilmore Jasion Mahler in 2002. He serves clients across many industries, with a focus on manufacturing & distribution. Charlie appears monthly on WTOL-TV to discuss tax and money issues.

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 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.

Welcome News for Contractors

By the very nature of the construction industry, contracting businesses constantly move to new job sites, often criss-crossing the state of Ohio. That can get complicated when it comes to tax filing. But, not so much anymore. This video explains in simple terms what's different.

Gilmore Jasion Mahler CPA Mary Jo Pitzen is a member of the firm's Construction Specialist Team. She provides general business consulting and strategic tax planning to many of the firm's contracting clients.

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 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.

GJM Manufacturing Roundtable: The Road Ahead

Gilmore Jasion Mahler manufacturing roundtableMajor shifts in the automotive industry are no doubt dramatically changing the car market. But here’s something you may not be considering: trends toward self-driving cars and ride sharing will impact all businesses, including yours, no matter what type of work you do.

The headlines are beginning to tell the story. In May came the announcement that Ford is slashing 7,000 white collar jobs as part of a plan to focus on autonomous driving technology and electric vehicles. GM made a similar move last fall, announcing it was closing five North American factories. Self-driving cars and the ride-sharing trend are reshaping the way we move people and the way we move goods.

Automotive needs to adapt, but so do other industries, no matter what kind of product you manufacture. What significant impacts will this automotive transformation have on the broader economy?

Lawrence Keyler RSMGilmore Jasion Mahler is pleased to feature guest presenter Lawrence Keyler, RSM Global Automotive Leader as he shares his insights and the big picture view for all manufacturers, not just automotive, at GJM’s upcoming Manufacturing & Distribution Financial Executive Roundtable on Thursday, July 18.

Keyler is a tax partner at RSM who specializes in the manufacturing industry, with a focus on automotive. GJM is a member of the RSM US Alliance.

The sessions are open to manufacturing financial executives and there is no cost to attend. Attendees have two sessions and locations to choose from on July 18:

 

Findlay Country Club  

1500 Country Club Drive, Findlay

11:30 am - 1:00 pm 

(lunch provided)

1.5 CPE Credits

 

The Pinnacle

1772 Indian Wood Circle, Maumee

3:00 pm - 5:00 pm

2 CPE Credits

 

Manufacturing financial executives can RSVP to info@gjmltd.com. Please specify which session you would like to attend.

Gilmore Jasion Mahler established the Manufacturing & Distribution Financial Executive Roundtable series after hearing from manufacturing clients that they needed a way to come together with other manufacturers to share best practices. The firm offers the sessions three times a year. Other recent roundtable topics have included the manufacturing workforce shortage, Wayfair vs. South Dakota, manufacturing automation and active shooter preparedness.

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 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.

The New Tax Law & Your Construction Business

The Tax Cuts and Jobs Act (TCJA) brought the most significant changes to our country’s tax law in over thirty years when it was signed into law on December 22, 2017. Most of the changes in the new law first applied to 2018 tax returns, so it’s our first chance to really see its impact. Since December of 2017 there have been several notices and regulations clarifying the new tax law, but further guidance is still needed in many areas. In this article, we’ll take a look at some of the key issues impacting businesses, particularly those businesses in the construction industry.

Qualified Business Income (QBI) Deductions Clarified

TCJA introduced a new deduction under IRS Code Section 199A for up to 20% of an eligible taxpayer’s qualified business income (QBI). Final regulations clarifying Section 199A were released in late January. The deduction, which is not available to C corporations, is calculated based on the qualified business income of each trade or business, subject to limitations based on wages and fixed assets. If the individual taxpayer’s taxable income is under $157,500 ($315,000 married filing jointly), the taxpayer is not subject to these limitations.  

Aggregation

The final regulations added the option to aggregate at the entity level, reducing the reporting obligations of the taxpayer. This is welcome news for many contractors, as it is common in the construction industry to have multiple entities for different geographic regions or service lines.

Aggregation can also be done at the individual level, allowing a taxpayer to combine activities that would otherwise be limited from taking the deduction. This individual level of aggregation now allows a taxpayer to combine wages and assets to maximize the QBI deduction. This aggregation will also simplify the new tax return disclosures required under the Tax Cuts and Jobs Act.

Assuming the individual taxpayer’s taxable income is in excess of the thresholds, the 20% deduction is limited based on a percentage of the entity’s wages and/or fixed assets. The final regulations also allow the entity to include wages of common law employees paid by another entity. This could be a significant benefit for related entities that may have differing ownership or those who use staffing companies, certainly something seen often in the construction industry.

Planning Opportunities

It’s also important to carefully analyze other planning opportunities and pitfalls. It will generally be beneficial for partners to take distributions in lieu of guaranteed payments since guaranteed payments don’t qualify for the 20% deduction. Also, entities will need to monitor the level of any consulting or other specified service income within an otherwise qualified trade or business. Specified service income over thresholds could cause an entire trade or business to be disqualified.

Bonus Depreciation and Section 179 Changes

Most owners of construction companies can never have enough equipment! Many of these businesses are smart and buy new equipment for economic reasons and not for tax reasons. If it’s necessary to buy new equipment to grow your company, some changes in bonus depreciation can really pay off. In fact, we’ve seen an increase in activity in the buying and selling of construction companies because this same rule applies to equipment acquired when you buy a new construction business.

The TCJA expanded accelerated depreciation, increased the Section 179 limits, and allows for 100% bonus depreciation on both new and used property. There are not any limits on the amount of bonus depreciation that can be taken, but Section 179 is still limited by the asset acquisitions of the taxpayer as well as taxable income. Qualified Improvement Property, a new class of property, includes nonresidential improvements to the interior of a building. Qualified Improvement Property is eligible for Section 179 depreciation, but currently is not eligible for bonus depreciation due to technical oversights when the TCJA was drafted. 

Meals and Entertainment Deductions: Not What They Used to Be

In the past, taxpayers could deduct 50% of the costs of business-related meals and entertainment expenses. The new tax law has eliminated any deduction for entertainment-related expenses. In general, the 50% deduction remains for most business-related meals, and the 100% deduction for employee social and recreational meals still exists.

Ohio Municipal Income Tax: Easier Filing

Beyond the federal tax law changes, there have also been significant changes to Ohio municipal income taxation. This was the first filing season allowing business taxpayers to file a single, combined municipal income tax return instead of filing separate returns for each city. This is a welcome change for contractors working in communities across Ohio, eliminating the need for potentially dozens or maybe hundreds of separate filings. Before a business can begin filing a combined return, it must first make a one-time election and notify each of the cities within 60 days of the beginning of their tax year. Businesses with a December year end would have had to file the election by March 1, 2019 in order to be able to file a combined 2019 return.  

The application of the new tax law can be complicated for both individuals and businesses. It’s safe to say we can expect to see more clarifications from the IRS in the months ahead. While the Tax Cuts and Jobs Act simplified tax filing for some of the most basic tax returns, many taxpayers and businesses are likely to struggle to digest and apply the new law now and for some time to come.

CPA Mary Jo Pitzen contributed this article. It was also published in the May 2019 edition of the CFMA Northwest Ohio Ledger, the organization's online newsletter. Mary Jo is a senior tax manager at Gilmore Jasion Mahler, LTD. She is a member of the firm’s Construction & Real Estate Specialist Team. Mary Jo is also a member of the Northwest Ohio chapter of the Construction Financial Management Association (CFMA) and 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 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.