News and Analysis
At 2 p.m. Thursday, Feb. 23, OMA Connections Partner RSM will host a webinar for manufacturers dealing with the change in tax treatment for research and experimental (R&E) costs. Taxpayers must now capitalize and amortize R&E costs, versus deducting expenses in the year incurred. Learn more and register.
Also, at noon on Wednesday, Feb. 22, OMA Connections Partner CliftonLarsonAllen will conduct its annual “R&D Tax Credit Update” webinar. Register here. 2/14/2023
An updated comparison by the Tax Foundation shows Ohio’s average combined state-and-local sales tax rate of 7.24% is 20th highest in the U.S., higher than neighboring states. Ohio’s position is unchanged from 2022’s ranking.
Ohio’s state sales tax rate is 5.75%, while the average local sales tax rate is 1.49%. 2/7/2023
On Feb. 7, the Ohio House Finance Committee held its first meeting to review the governor’s FY 2024-2025 budget. Afterwards, committee Chair Rep. Jay Edwards (R-Nelsonville) told reporters that the majority of GOP members wants a tax cut, most likely an income tax cut.
Gongwer News Service quoted Edwards as saying: “I don’t think you’re going to see an elimination of the income tax yet, but I think we’re going to take the first steps toward trying to get closer to a flat tax.” 2/7/2023
To spotlight important 2023 tax deadlines, OMA Connections Partner Clark Schaefer Hackett has published this summary. The publication highlights when various tax-related forms, payments, and other actions are due for businesses and individuals. 2/6/2023
Unfortunately, the requirement to capitalize research and experimental (R&E) expenses was not deferred in a federal 2022 year-end tax bill.
OMA Connections Partner CliftonLarsonAllen reports that with Congress unlikely to act soon, action is needed now to avoid underpayment penalties. Read the firm’s insights. 2/6/2023
U.S. Generally Accepted Accounting Principles (GAAP) and the federal tax code allow businesses to choose one of four methods of accounting for inventory, including Last in First out (LIFO).
OMA Connections Partner HBK reports that LIFO is often overlooked, but that in periods of inventory growth — or inflation — LIFO can provide immediate tax benefits to businesses with large inventories. Read more. 2/7/2023
The slowdown in manufacturing continued in December and January, according to OMA Connections Partner RSM and its Manufacturing Outlook Index. The index suggests “an increased likelihood of a manufacturing recession this year.”
OMA Connections Partner HBK has published this list of actions that manufacturers can take to prepare for a potential recession. 1/31/2023
The IRS recently issued guidance requiring taxpayers to submit additional information to substantiate their R&D Tax Credit claim in order to receive refunds via an amended return. OMA Connections Partner Schneider Downs has published its insights regarding this development. 1/31/2023
According to Cleveland.com’s analysis of state data, six Cuyahoga County areas are among the 10 places in Ohio with the highest property tax rates — all above $3,200 per $100,000 of home value. Harrison Township in Montgomery County once again claims Ohio’s highest residential property tax rate, according to the study. 2/2/2023
Patricia Harris has been nominated to lead the Ohio Department of Taxation. She currently serves as chief operating officer of the Ohio BWC. Gov. Mike DeWine announced his selection of Harris earlier this week. 1/25/2023