Once tax season was completed, we said goodbye to an employee who has been with us for 5 ½ years.  Alyssa Scher left to take a job with the Huntington Community School system to be able to spend more time with her family.  We are sad to see her leave the firm but understand her decision when tax season is a long 3 ½ months with a lot of hours.  Alyssa helped prepare payroll filings, completed monthly and quarterly bookkeeping, assisted in trust, estate and gift tax returns and also completed individual and business tax returns.

This tax season we had two interns with us and we are happy to announce that we have hired one of them to work with us full time going forward.  Blake Gray, a Warren, Indiana resident, will be working with us full time upon graduation from Huntington University.  Some of you have likely already had the privilege of having conversations with him as he jumped right in assisting with the quarterly payroll filings.  He will be handling bookkeeping, payroll and fiscal year tax return preparation during the summer.  Blake did a fantastic job during tax season, and we are eager to work with him in the years to come.  Blake plans to sit for the CPA exam this summer and fall.

Sherry’s attention to detail, while keeping the broader picture in mind, has been invaluable. Her willingness to put in extra time and effort to help us meet deadlines has demonstrated a commitment to excellence that we have come to depend upon. She has helped keep all of us on track and on time. In addition to her knowledge and skill, she has been a friend to many of our clients and staff.

We know you all join us in wishing Sherry well as she starts a new chapter in her life.

In other staffing news, Kline’s CPA Group has 2 college interns with us this year.  Blake Gray is a Senior at Huntington University who resides in Warren, Indiana and Chandler Bauer is a Senior at Manchester University who resides in Huntington, Indiana.  Both are learning about and preparing personal tax returns, business tax returns, some payroll filings and assisting with other office tasks around the office.

Have you ever thought about creating a scholarship for low to middle income students to attend non-public schools? Now might be the best time to start a scholarship for a local private school. Indiana has a tax credit available to individuals and corporations for contributions to a scholarship granting organization (SGO). The Indiana tax credit is 50% of your contribution.  The only limitation is Indiana will issue $14 million dollars in credits from July 1, 2018, through June 30, 2019.  You can check the total credits claimed during the period by clicking here.  Any unused SGO credit claimed by the taxpayer in the current year can be carried forward for 9 years, but is never refundable.  You will also want to plan your other nonrefundable credits accordingly, i.e. Indiana college contribution credit, Indiana 529 Plan credit. If you have Indiana tax withheld from your sources of income, the withholding would be refunded on your Indiana tax return if you decide to make a contribution to an SGO.

Another great advantage of the SGO tax credit is you are allowed to take it in multiple years. A taxpayer can make a contribution in 2018 and as long as there are credits remaining for the SGO tax credit, another contribution could be made in early 2019. You will want to make a decision on your first contribution soon as the contribution needs to be received by the SGO before December 31, 2018, to be eligible as a tax credit on your 2018 Indiana tax return.

If you would like to set-up a scholarship for a non-public school, you will want to contact a scholarship granting organization. Listed below are the approved SGO’s for Indiana. If you have questions about the functions of the program, you will want to contact a member from the organization of your choice. If you have a question on the tax credit, please contact our office and we can assist you with your questions.

School Scholarship Tax Credit Program

Approved Scholarship Granting Organizations as of 9/22/17

Elkhart County Community Foundation

P O Box 2932

Elkhart, IN  46515

Amanda Jamison, Program Officer

(574)295-8761

mailto:amanda@InspiringGood.org

Date of Apprval:  February 2, 2015

Institute for Quality Education, Inc. (formerly Educational Choice Charitable Trust)

101 West Ohio St., Suite 700

Indianapolis, IN  46204

Mary Eaker, Program Director

(317)951-8781

mailto:maryeaker@h4ged.org

Date of Approval: January 13, 2010

School Scholarship Granting Organization of Northeast Indiana, Inc.

915 South Clinton Street

Fort Wayne, IN 46802

Marsha Jordan, Superintendent

(260)442-4611 Ext. 3316

mjordan@diocesefwsb.org

Date of Approval: March 5, 2010

Sagamore Institute Scholarships for Education Choice

2902 North Meridian Street

Indianapolis, IN 46208

Laurel Christensen, Senior Fellow and Director

(317)472-2050

laurelc@sagamoreinstitute.org

Date of Approval: March 4, 2011

The Lutheran Scholarship Granting Organization of Indiana, Inc.

1145 Barr Street

Fort Wayne, IN 46802

Jon Dize, SGO Administrator

(260)203-4509

info@lutheransgo.org

Date of Approval: October 30, 2012

LaGrange County Community Foundation, Inc.

109 E. Central, Suite #3

LaGrange, IN  46761

Jennifer Tuttle, Executive Director

(260)463-4363

mailto:jtuttle@lccf.net

Date of Approval:   August 26, 2016

Professional Athletes of Indiana

6678 Guion Road

Indianapolis, IN  46268

Jermaine Chaney, President

(317)339-9087

mailto: jchaney@chaneyfinancialgroup.com

Date of Approval: September 22, 2017

SCHOLARSHIP

Brian loved helping teens in this way because he saw the way their lives were impacted. YFC will be creating opportunities annually for students who cannot afford to participate in life-changing camps and trips. We will also provide funds for two graduating seniors to further their education and attend college.

LEADERSHIP

To steward our mission well we must develop the next generation of leaders. YFC will invest in high school student leaders, college interns and YFC ministry staff to continue the impact in our communities. Training and leadership development will continue to be delivered at a very high level.

MINISTRY

Brian was a visionary and always talked about growing the YFC footprint in our territory. In communities like Huntington and the surrounding area our schools and local authorities have identified several opportunities to expand our reach with at-risk teens.  We plan to invest in staff recruitment, volunteer training and will empower a team of adults to help focus on these opportunities.

Brian believed that young people needed hope and he believed the mission of YFC brought that hope to teens who were often times overlooked or simply not engaged in their community. We hope to increase that impact through a number of different initiatives that would have immediate and long lasting impact in the lives of young people in our communities. We invite you to join us in continuing the legacy of Brian Kline. For more information on how you can contribute to the Brian Kline Legacy Fund, contact Brandy Swope at Kline’s CPA (260)356-1040 or contact Roger Vezeau, Youth For Christ, (260)484-4551 or (260)224-2988.

Help us make an impact. Brian believed that young people needed the message of hope.

Youth For Christ is excited to announce the inaugural Brian Kline Golf Classic (formerly the Huntington golf outing) on the morning of Friday, June 15th at Chestnut Hills Golf Club. You are invited to be a part of this great event. The Brian Kline Golf Classic has been established to honor the life and legacy of Brian Kline.

For more information or to register you or your team, CLICK HERE. If you have questions contact Breanna Amico at mailto:bshroyer@yfcnin.org.

We look forward to seeing you on June 15th!

We look forward to future opportunities to team up with WOWO to offer our clients the chance to meet and hear area professionals. We welcome your input if there is a specific topic you would like to see addressed.

Changes in 529 plan rules include making computers and related equipment a qualified education expense for 529 purposes. The new legislation also allows account owners who take a withdrawal but then get a refund from the school to redeposit that money in the 529 plan within 60 days with no penalties.

Normally, the deadline for filing personal tax returns with the IRS is April 15. In 2017, April 15 is a Saturday and April 17, is Emancipation Day so the 2017 filing deadline will be April 18.

The due date for partnership returns (Form 1065) will move from April 15 to March 15 (or the 15th day of the 3rd month after the end of its tax year).

The due date for C corporation returns (Form 1120) will move from March 15 to April 15 (or the 15th day of the 4th month after the end of its tax year). The due date for S corporation returns (Form 1120S) will remain unchanged.

Estate planning is an ongoing process. If you are young, your plan might consist of simply a Will. If you are a young couple, and you have children, it is important to name a guardian and arrange to provide for your children and spouse in the event of an unexpected death or incapacity. As you start to gain financial success, preserving assets and avoiding taxes become important factors in estate planning.

If you die without a Will, the court in the state you live will choose an administrator for your estate. If you have minor children, the court will also appoint a guardian for your minor children. The court’s choice may well not be the person you would have selected. The property you own in your individual name will be distributed according to the state intestacy laws. This may not be the way you want your property to pass. If your heirs include minors at the time of your death, the minors will automatically receive their shares of your assets outright once they reach the age of majority, whether or not they are experienced enough to manage their inheritance sensibly.

Presently, a top marginal tax rate of 40% applies to taxable gifts and estates. If your net worth is close to or over the federal exemption amount ($5,450,000 per person for 2016), your estate plan needs to include tax planning also. (The exemption amount increases to $5,490,000 per person for 2017.) Unless you plan for taxes, they can consume a large part of your estate. The estate tax is complex and requires not just looking at your current net worth, but also prior gifts and the ability to transfer any unused estate exemption amount between spouses (referred to as “portability”).

For calendar year 2016, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts.  The annual gift tax exclusion will remain at $14,000 for 2017.

If you are a business owner, this brings another facet to estate planning. It is important to arrange in advance for the transfer of your business at your death, incapacity, and retirement. If you want family members to continue the business after your death, it is important to be sure there is enough cash available to cover estate tax, if applicable, and to cover expenses. If you do not plan ahead for this, your heirs may have to sell the business or business assets to cover taxes and expenses. A buy-sell agreement put in place now can make for a much smoother transition at death, incapacity and retirement.

While we cannot prepare your estate plan documents, as this must be done by your attorney, we can assist you in updating your plan. We can help you estimate your net worth, determine how your assets are titled, and review your current plan if you have one. We can help you get a plan in place if you do not have one, or we can discuss the steps to update your estate plan to meet the ever changing laws and to reflect any personal changes in your lives. Everyday personal and family changes can make yesterday’s estate plan inadequate today. Give us a call if you would like to discuss your estate plan.

Before his death, Brian equipped our staff by sharing his knowledge and experience so that if such an event occurred, Kline’s CPA would survive and succeed. He provided co-owners the opportunity to maintain the same level of staff and service as in the past. Thanks to Brian’s planning and his foresight in building a cohesive team of professionals, we are pleased to say Kline’s CPA not only survived his untimely death, but continues to add clients from around the state of Indiana. Our staff has remained intact and we continue to apply Brian’s principles in dealing with co-workers and clients, and in striving to stay in the forefront of changes in our business. We cannot thank our clients enough for their loyalty and patience over the past five years. Our goal has been to match each of you with the professional most suited to meet your needs. As new relationships have been formed and ideas have been initiated, we hope you are as pleased with the results as we are. As Brian did, we will continue to strive to improve, while preserving what works!

Brian’s death is a reminder to many of us that tomorrow isn’t promised. As we have mourned our loss the last five years, we have rejoiced in knowing he was certain of his eternal life. He was bigger than life, a shining light, and his character and wit remain with us.

Matthew 5:16 In the same way, let your light shine before others,
that they may see your good deeds and glorify your Father in heaven.