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The end of year brings about changes, extenders and provisions in the world of individual and business taxation. One of the IRS changes announced for 2016 is the 3.5 cent reduction in standard mileage rates for business use of a vehicle. 

As anticipated, Congress has written new legislation extending certain tax provisions.  "Protecting Americans From Tax Hikes Act of 2015" is expected to be signed by President Obama within the next several days. 

One important provision has permanently extended the rule which allows tax-free IRA distributions (up to $100,000) to charitable organizations, and will be retroactive to January 1, 2015.  This rule allows owners of IRAs who are at least 70 1/2 years of age to direct up to $100,000 of their IRA distributions to charity. 

The funds that are given to charity are counted toward the IRA owner's annual required minimum distribution, or RMD.  Since these funds are going directly to charity, the distribution is not included in one's Adjusted Gross Income (A.G.I.), which helps in potentially reducing state income taxes, and may also allow certain other tax breaks to occur, due to a lower A.G.I. (i.e., medical expenses and miscellaneous itemized deductions).   

Legislation affecting tax law can be confusing. The Zinner tax department is up-to-date with the latest provisions affecting individuals and businesses and is ready to help ensure your financial strategy remains favorable, If you have any questions or concerns about taxes or your IRA, please contact me at gsigman@zinnerco.com or 216-831-0733. I'm ready to start the conversation and help you guide your retirement plan.

Following several staff promotions during a recent year-end Firm address, Managing Partner Robin Baum announced the appointment of Brett W. Neate, CPA, M.Tax, to Partner.

Due to a number of recent promotions and to accommodate our growing workload, the firm is searching for an outstanding professional to join our tax staff as a Tax Supervisor. 

I recently had a discussion with a new client about their Executive Director’s worker status.  I was surprised to learn that the organization wanted to classify him as an independent contractor instead of an employee.  Because a position such as the Executive Director would fall into the IRS categories for employees instead of independent contractor,

I explained to them that there would be potential fines and penalties assessed for this classification.  They could not believe they would be charged payroll taxes on his salary, as well as additional penalties.  Because re-classifying him would save the organization thousands of dollars in potential taxes, fines, and penalties, I wanted to offer some guidance so that other organizations can avoid these worker classification pitfalls as well.

The IRS is always coming up with creative ways to generate revenue.  One of their favorite methods is to look at organizations to see if they are improperly classifying workers as employees.  To make sure your workers are all properly classified (and more importantly to avoid the tax consequences of misclassification), it is important to know the difference between an employee and an independent contractor.

A self-directed Individual Retirement Account refers to any IRA that allows one to direct the IRA's assets to be invested in nontraditional investment vehicles. 

Examples of these might include real estate, collectibles, and limited partnership interests, and may be done with either a traditional or Roth IRA.  In order to participate in such a vehicle,  a trustee or custodian that specializes in this unique area must be identified and retained.  One must also become well acquainted with the prohibited transaction rules.  These rules require that only the IRA benefits from its transactions;  not the owner or their family.

Each week, we receive calls and inquiries about a worker classification and the considerations whether that person should be considered an employee or an independent contractor. The Zinner staff of CPAs and management consultants meets often with clients to ensure their workforce is properly classified. 

"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.

WASHINGTON — The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016.  In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment.  However, other limitations will change because the increase in the index did meet the statutory thresholds.