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If you use one of the many online platforms available to rent a spare bedroom, provide car rides, or to connect and provide a number of other goods or services, you’re involved in what is sometimes called the sharing or gig economy.

An emerging area of activity in the past few years, the sharing economy has changed how people commute, travel, rent vacation accommodations and perform many other activities.

Also referred to as the on-demand, gig or access economy, the sharing economy allows individuals and groups to utilize technology advancements to arrange transactions to generate revenue from assets they possess - (such as cars and homes) - or services they provide - (such as household chores or technology services).

WASHINGTON — The Internal Revenue Service released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law.

"As advertised, most taxpayers will see a reduction of their federal withholding as a result of the recently-passed Tax Cuts and Jobs Act (TCJA).  Keep in mind, though, that the full effect of the TCJA on individuals’ tax and financial situations will only begin to be known a year from now, when taxpayers begin to file their 2018 income tax returns," said Zinner Tax Partner Howard Kass, CPA, CGMA, AEP. 

Effective June 1^st 2018 Zinner & Co. will officially adopt Intuit’s Quickbooks Discontinuation policy. If you are using Quickbooks version 2015 or older, you will need to upgrade to maintain compliance. This policy will maintain support for the three most recent versions of Intuit Quickbooks. The annual drop date for the oldest product version is May 31^st. Intuit’s current “Disco” policy states:

Congress is enacting the most sweeping tax legislation in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there is still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way.

Here is a quick rundown of last-minute moves you should think about making.

“Data breach can’t happen in our company, we are not big enough to be a target.”

As a business owner, one often invests much time and energy into the day-to-day operations.  As a result, many owners are likely to sidestep or forget to take the time to establish a long-term plan for the business and simply presume their child will hold the same passion for the business and knowledge in the industry as they have. But, what happens if the child or children have no desire to inherit the business? 

First, having a succession plan in place for the business is just as important as having a will for ones personal assets.  Without a succession plan, the company’s future, assets, and legacy are potentially at risk, regardless of who handles the business when an owner retires. 

While many entrepreneurs find satisfaction in owning their business and others simply love their jobs, most do not necessarily want to work for the rest of their lives. 

If you are such an entrepreneur, you are not alone. Many look forward to the idea of never having to work again, yet, the concern about whether there will be enough income to survive can’t be overlooked. This leads to the all-important question:  How much does one need to save for retirement?

Like everything in life, the manufacturing process has a beginning and an end. Understanding that process is important for making business decisions regarding raw materials, staffing, inventory, fixed assets, and innovation. 

This knowledge is also used by well-advised businesses to reduce tax expense in Ohio and many other states that have designed their sales tax structure to promote manufacturing.

Read more from Brett Neate here

Ohio does not require sales or use tax to be paid on the purchase or consumption of items used primarily in the manufacturing operation to produce personal property for sale. One of the challenges in maximizing the benefit of this exemption is understanding, for sales tax purposes, when the production process begins and ends.

Production begins when raw materials are committed to the process and ends when the product is in its final state or form. While these definitions seem straightforward, they tend to incredibly nuanced depending on the product being created and the specific process being utilized by the manufacturer.

An additional challenge in properly applying the exemption is when assets or materials are used in both manufacturing and non-manufacturing processes. For example, forklifts are often used to move raw materials, production items, and finished goods. The cost to purchase, maintain, and power the forklifts may or may not be subject to sales tax depending on whether or not they are used primarily in the production process.

Fall 2017 | Winter 2018

Zinner & Co. is ready to ring in the New Year with a commitment to sustainability, focus on our environment, and assurance that our clients receive year-round service.  As part of this initiative, beginning in January 2018, business client invoices will be delivered via electronic mail. To ensure timely and effective receipt of your invoice, please take a moment to update your company information by downloading the form here and adding your billing department information if it is different than your primary company contact. (Please let us know if you prefer to continue to receive your invoice via USPS). You can return the form to us at ClientUpdate@zinnerco.com or via US mail:

The Journal of Accountancy recently published an interesting article addressing the issue of 'gray divorce.'  Gray divorce refers to couples divorcing later in life and while a 30-something divorcing couple may be squabbling over custody, visitation, and credit card bills, those couples divorcing over age 50 are facing battles over retirement funds, the long-term residence, and a diverse portfolio of assets.

Oftentimes, divorcing couples believe that because the court suggests a particular division of assets, that it is what they must do. Couples may not realize that the court will decide in the absence of either party striking an agreement. When the court makes a decision for the couple, this may not be in the best interest for either.

Learn more about retirement and estate planning in Gary's blogs

Meeting with your CPA, whether as a couple or individually, will allow you to take a closer look at the reality of the tax and financial implications depending on how the assets are ultimately divided.  Also, your CPA will run scenarios, especially if one spouse was the higher earner or if one spouse did not work, which will greatly affect the financial future of both.