Ohio Corporate Taxes

Per the American Payroll Association, the Treasury Department has announced that, as part of a three-pronged initiative to reduce the amount of paper transactions it handles, most employers that now are allowed to use paper Federal Tax Deposit Coupons and checks to make payroll tax deposits will have to make those deposits electronically through the Electronic Federal Tax Payment System (EFTPS) beginning in 2011. The primary exemption will be for employers that have $2,500 or less in quarterly...

This month's Special Delivery E-Newsletter includes the following articles:

• Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
• Year-End Tax Planning Letter for Individuals
• Year-End Tax Planning Letter for Businesses
• What Are the Benefits of Buy-sell Agreements?
• Don't Miss Out on Above-the-line Deductions
• Keeping Records for Your Business Car
• Aurum Capital Markets Summary
• R&D Tax Credit Extended for 2010 and 2011 Calendar-year Expenses
• IRS Increases Business Mileage Rate to...

CLEVELAND - Joseph F. Skoda, CPA, a partner at CPA, business and financial advisory firm Skoda Minotti, recently became the first member of the Ohio IRS Tax Liaison Panel to be re-elected for a second two-year term. Skoda is joined on the 28-member panel by fellow Skoda Minotti partner Steven C. Hartstein, CPA, JD.

The panel meets with the management of the IRS and the Ohio Department of Taxation four times per year and is responsible for helping the taxing authorities identify systemic problems...

This month's Special Delivery E-Newsletter includes the following articles:

• Skoda Minotti Expands its Compensation and Benefits Advisory Services Group
• Own Rental Property? New Law May Affect You
• Capital Gain Exclusion on Small Business Stock
• One Last Chance to Repair Deferred Compensation Plan Issues
• Common Benefits of a Business Plan
• Home-office Deductions: Terms of Tax Endearment
• Cutting the "Kiddie Tax" Down to Size
• Aurum Capital Markets Summary
• Skoda Minotti Only Company Recognized at Inc....

The IRS granted around $15 million to 62 Ohio biomedical companies for qualified Therapeutic Discovery Projects that take place during 2009 and 2010. 

The Patient Protection and Affordable Care Act  enacted in March 2010 allowed for $1 billion dollars in tax credits or grants (for not yet profitable companies) for companies with projects that show potential to:

·          Result in new therapies to treat areas of unmet medical need or prevent, detect or treat chronic or acute diseases and...

President Obama’s latest proposal would allow companies to write off 100% of their new investment in plant and equipment as “bonus” depreciation -- in previous years, companies could deduct up to 50% of their new investment in plant and equipment.  Also included in this proposal is expansion of the R&D tax credit.  Details on the proposal will be laid out in a speech in Cleveland tomorrow. 

Click here to learn more and contact our Tax Planning & Preparation Group at 440-449-6800 with...

Seven Steps for Delegating Work
 
Do you own a small business? You may feel that the success-or the failure-of the business rests entirely on your shoulders. So you try to be in all places at all times. However, in most cases, this will result in problems for the operation and decreased productivity by other workers.

Solution: Practice the fine art of delegation. (It is an art, not a science.) If you parcel out certain jobs among other staff members, you can devote more of your time to areas with...

2010 Real Estate and Construction Survey

Skoda Minotti is conducting our 3rd annual survey of the Northeast Ohio real estate and construction industries. Every participant who completes the questionnaire will receive a free copy of the survey results and analysis and have a chance to win a $50 gift card to Dick's Sporting Goods.

The goal of the survey is to provide professionals in the real estate and construction industries in Northeast Ohio with the invaluable insight into their industries.

As...

The Tax Court has held that, under the regs, a land surveying firm is treated as performing engineering services even though it employed no engineers. As a result, the Tax Court found that the firm was a qualified personal service corporation subject to a flat 35% tax rate.

Background. C corporations generally are subject to tax at graduated rates on their taxable income. (Code Sec. 11(b)(1)) The benefits of the graduated rates phase out after taxable income reaches a specified amount. By...

Advisor Insights

This month, our monthly Advisor Insights column in Smart Business Cleveland Magazine takes a look at lessons learned from the real estate industry.

Having a finite resource as your business's main asset has proved challenging for real estate companies, but it also has necessitated some creative problem solving.

Click here to read the full article, "Lessons learned from the Real Estate Industry."

Administration Outlines 2011 Tax Proposals 

On February 1, 2010, the Treasury...

As you begin preparing your 2009 tax individual or corporate tax return, there are several items to keep in mind.

What Individuals need to watch out for when filing 2009 returns:

• Effects of the American Recovery and Reinvestment Act of 2009:
      - Making Work Pay Credit
      - Changes to the Alternative Minimum Tax
      - First Time Home Buyer Credit
      - American Opportunity Credit
      - Long-Time Resident Home Buyer Credit
      - Energy Efficiency Credits
      - For more information, read our...

The Ohio Commercial Activity Tax was fully phased-in as of March 31, 2009. For those taxpayers with Ohio gross receipts between $150,000 and $1 million, the tax is $150. For taxpayers with Ohio gross receipts over $1 million, the tax is $150 plus a .26% tax of any Ohio gross receipts over $1 million.

Several key changes include:

1.      The Ohio personal property tax has been completely phased out. For most businesses the final report was the 2009 personal property tax report.

2.      The Ohio...

Some of these opportunities may apply regardless of whether your business is conducted as a sole proprietorship, partnership, limited liability company, S corporation, or regular corporation. Other opportunities may apply only to a particular type of business organization. This Tax Letter is organized into sections discussing year-end, and year-round, tax-saving opportunities for:

1.      All businesses

2.      Partnerships, limited liability companies, and S corporations

3.      Regular (C)...

Effective January 1, 2010, Ohio has made a few changes to the way sales of tangible personal property and taxable services are sourced. According to the Ohio Department of Taxation, the purpose of sourcing is to determine the location of the sale for sales tax purposes. If a sale is taxable, the sourcing of the sale will determine the appropriate jurisdiction’s tax rate for the seller to charge.

Below is guidance on the Ohio sales tax sourcing rules.

1. Ohio vendors who sell tangible personal...

In 2008, Ohio set a new record with 85,782 new foreclosure filings, according to the annual study issued by Policy Matters Ohio, with Cuyahoga County leading the way. In an attempt to prevent this from devaluing our region, the Cuyahoga County Land Bank Reutilization Corporation (CCLRC) was formed. 

What exactly is the CCLRC? Here’s a crash course in the organization and its purpose:

“CCLRC, known informally as the Cuyahoga County Land Bank, was formed to help return vacant and abandoned...

That’s right. State officials now say that California’s financial situation is so serious that many taxpayers may receive IOUs instead of refunds for state taxes. Warnings of delayed tax refunds and warrants started as early as January, 2009. 

The State of California is planning on issuing warrants instead of refund checks. A warrant is issued by a government agency when they are unable to pay currently and are redeemable at some point in the future, usually with interest. Only once since the...