Tax and Finance Management

Still Time to Save on Taxes With Opportunity Zones

The IRS has extended the deadline to make an investment in a qualified opportunity zone fund, which means there’s more time to receive potential tax benefits. Find out more by reading this insight from OMA Connections Partner CliftonLarsonAllen. 11/19/2020

IRS Affirms Guidance on Deductible Expenses Paid With PPP Loans

The IRS this week released another revenue ruling affirming its previous guidance that expenses paid with Paycheck Protection Program (PPP) proceeds, which would otherwise be deductible, will not be permitted to be deducted. Read more about this development in this update from OMA Connections Partner Benesch. 11/19/2020

Disagreement Grows Over Ohio’s Municipal Income Tax

The Columbus Dispatch this week reported on growing calls from Ohio lawmakers who argue that work-from-home residents — who reside in one city and worked in another prior to the pandemic — should not have to pay municipal income taxes as if they were driving to their regular workplace. Officials from larger cities say repealing a temporary law (passed last March) that maintains pre-pandemic tax collection would devastate city budgets.

Learn more about this development and other tax issues at the OMA’s Nov. 18 Tax Committee meeting, which is open to all members. Register here. 11/10/2020

A Look at Potential Tax Changes Under Biden

OMA Connections Partner GBQ Partners will conduct a free webinar on Nov. 19 to review President-elect Joe Biden’s tax proposals and how likely these proposals are to become law.

Also, OMA Connections Partner CliftonLarsonAllen will host a complimentary webinar on Dec. 3 to discuss tax and economic implications as a result of the election. 11/10/2020

SBA Proposes Liquidity Questionnaire for PPP Borrowers

Recently, the SBA requested approval from the Office of Management and Budget to collect certain information on borrowers who have Paycheck Protection Program (PPP) loans in excess of $2 million. This is an important and evolving situation for many PPP borrowers.

For more on this development, read this insight from OMA Connections Partner Benesch, as well as this analysis from OMA Connections Partner Schneider Downs. 11/9/2020

Ohio Tax Revenue Is Beating Estimates by 4.2% for Fiscal Year

Fueled by continued strong sales tax revenue, Ohio’s October tax receipts beat estimates by $84.8 million, or 4.3% above forecasts. According to the Office of Budget and Management’s monthly financial report released this week, total tax receipts have exceeded estimates by $347.2 million (4.2%) for the fiscal year so far.

The report notes that Ohio’s manufacturing employment increased by 3,100 jobs from August to September, with aerospace and miscellaneous transportation and equipment seeing the largest expansions within the sector. 11/9/2020

What’s the Real Value of $100 Across the U.S.?

A new comparison by the Tax Foundation examines purchasing power in America, comparing how much $100 can buy in different regions and metropolitan areas across the U.S. According to the Foundation’s interactive map — based on federal data from 2018 — $100 goes further in rural areas in the Southeast and Midwest, including Ohio. 11/11/2020

Supreme Court of Ohio Upholds Centralized Tax Collection

In a welcome decision authored by Justice Michael P. Donnelly, a majority of the Supreme Court of Ohio upheld the legality of state legislation that created a centralized system for the collection of all municipal business income taxes.

Municipalities argued the effort to centralize collections violated home-rule, but the Court found otherwise. The Court blocked the imposition of a small administrative fee to be levied on municipalities by the Ohio Department of Taxation.

The OMA has supported centralized collection of local taxes to promote tax simplicity. Here’s a short analysis of the decision by OMA tax counsel Justin Cook of Bricker & Eckler. 11/5/2020

RSM Offers Multi-Day Virtual Tax Summit

OMA Connections Partner RSM has planned a virtual and interactive tax summit Nov. 9-13. Over the course of a week, 16 plenary sessions are scheduled, focusing on post-election perspectives, changes in the world and business models due to recent events, and considerations for business owners and tax professionals for closing out 2020 as well as preparing for 2021.

There will be Ask the Expert chat sessions and the event may qualify for up to 16 hours of CPE credit. More information here. 11/2/2020

Durable Goods Orders Rise for Fifth Straight Month

Nationwide, orders for durable goods increased for the fifth consecutive month in September, according to data released this week. OMA Connections Partner RSM reports that the increase was driven by a 4.1% rebound in orders for transportation equipment. 10/29/2020