ISSUE 4, 2024 OFFICIAL PUBLICATION OF THE NEBRASKA SOCIETY OF CPAS CELEBRATING OUR LEADERS SOCIETY INTRODUCES NEW OFFICERS & BOARD MEMBERS FOR 2024-2025
■ Corporate Taxation ■ Partnership/LLC/Sub-S Entities ■ Estate & Gift Taxation ■ State & Local Taxation ■ Mergers & Acquisitions ■ Bankruptcy, Reorganizations & Restructuring ■ Tax Protests, Disputes & Litigation ■ Real Estate ■ Individual Taxation ■ Charitable Planning ■ Nonprofit Organizations ■ Employee Benefits & Executive Compensation A partnership that gets everyone where they want to go. You help your clients plot out prudent tax decisions. We can help them navigate the potential pitfalls and opportunities of today’s complex tax environments. Together, we can map out their routes to success. Contact Us Today. 402.390.9500 | koleyjessen.com/services-tax Helping CPAs statewide, Koley Jessen can be your tax law navigator.
BOARD OF DIRECTORS JONI SUNDQUIST NESCPA PRESIDENT & EXECUTIVE DIRECTOR joni@nescpa.org KELLY EBERT VICE PRESIDENT kelly@nescpa.org MICHELLE LYONS STAFF ACCOUNTANT & OFFICE MANAGER michelle@nescpa.org LORI VODICKA MEMBERSHIP & CPE ASSISTANT lori@nescpa.org OFFICERS BOARD MEMBERS NESCPA STAFF BRIAN M. KLINTWORTH CHAIRMAN HBE LLP Lincoln JODI M. ECKHOUT CHAIRMAN-ELECT Woods & Durham Chartered CPAs Holdrege HEATHER E. BARR SECRETARY Endicott Clay Products Co. Fairbury GRANT H. BUCKLEY TREASURER Buckley & Sitzman LLP Lincoln KELLY J. MARTINSON IMMEDIATE PAST CHAIRMAN Lutz Omaha SHARI A. MUNRO AICPA ELECTED REPRESENTATIVE Frankel LLC Omaha LORRAINE A. EGGER AICPA ELECTED REPRESENTATIVE NOMINEE CyncHealth La Vista KELLY A. MANN AICPA AT-LARGE REPRESENTATIVE AuditMiner Gretna DERRICK J. BLUM DIRECTOR Iron Horse CPAs & Advisors PC Norfolk LAUREN E. BOND DIRECTOR Deloitte & Touche LLP Omaha LAURIE ANN J. BUHLKE DIRECTOR Contryman Associates PC Grand Island NICOLE L. COOPER DIRECTOR Project Harmony Omaha JUSTIN M. HOPE DIRECTOR Eide Bailly LLP Elkhorn JILL R. TRUCKE DIRECTOR University of Nebraska-Lincoln Lincoln DANA J. WEBER WEST NEBRASKA CHAPTER PRESIDENT Dana J. Weber, CPA Scottsbluff With more than 50 years of experience in the intricacies of Estate Planning, the team at Endacott Timmer knows the importance of getting the details right. endacotttimmer.com 402-817-1000 If you fail to plan, you plan to fail. Call the Estate Planning professionals. 4 Nebraska CPA
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26 18 C O N T E N T S 8 ©2024 Nebraska Society of Certified Public Accountants | The newsLINK Group LLC. All rights reserved. The Nebraska CPA is published six times each year by The newsLINK Group LLC for the Nebraska Society of Certified Public Accountants and is the official publication for this society. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Nebraska Society of Certified Public Accountants, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Nebraska CPA is a collective work and as such some articles are submitted by authors who are independent of the Nebraska Society of Certified Public Accountants. While the Nebraska CPA encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. ISSUE 4, 2024 EDITORIAL: The Nebraska Society of CPAs seeks to reflect news and relevant information to Nebraska and other news and information of direct interest to members of the Nebraska Society of CPAs. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Nebraska Society of CPAs. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the Nebraska Society of CPAs. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to the magazine, a bi-monthly publication, is included in membership fees to the Nebraska Society of CPAs. PRESIDENT’S MESSAGE 7 Celebrating Our Leaders Society Introduces New Officers & Board Members for 2024-2025 By Joni Sundquist, Nebraska Society of CPAs 10 2024-2025 Nebraska Society of CPAs Board of Directors 11 Specialized CPA Lending: Expertise You Can Trust By Salt Creek COUNSELOR’S CORNER 12 Breaking Ground Strategies for Dividing Farm & Ranch Corporations By Nate Patterson & Nicholas Bjornson, Koley Jessen 14 Why Accountants Attempt to Sell on Their Own By Accounting Practice Sales 16 2024 NESCPA Course Calendar 18 Embracing Neurodiversity Why CPA Firms Should Consider Neurodiverse Employees By Katie Ping, Autism Action Partnership 20 Stock Donations By Megan Stubenhofer-Barrett, Omaha Community Foundation 21 In Memoriam STATE BOARD REPORT 22 NASBA Holds Regional Meeting in Nebraska By Dan Sweetwood, Nebraska Board of Public Accountancy 23 Understanding Federal Business Certifications Navigating Opportunities for Women, Veterans & Disadvantaged Groups By Hannah Fischer Frey, Steve Koo & Jack Suter, Baird Holm 26 Congratulations to the Top CPA Candidates in Nebraska! 28 AI Discovery Practical Steps for CPAs to Get Started With AI Before Tax Season By Rick Meyer, CPA, MBA, MST, alliantgroup 30 Help Clients Save on Taxes & Higher Education Costs With NEST 529 A Message From the Nebraska State Treasurer 32 Members in the News 34 Welcome New Society Members 35 2024 NESCPA Advertiser Index
THE MEMBERSHIP OF THE NEBRASKA SOCIETY of CPAs has selected an outstanding slate of individuals to serve in leadership positions for 2024-2025. New officers and board members were elected during the Society’s Annual Meeting and Society Board of Directors Meeting on Oct. 29, 2024. The meetings were held in conjunction with the Fall Conference at the beautiful Riverview Lodge at Mahoney State Park in Ashland, Neb. Since the Nebraska Society of CPAs began in 1928, member volunteers have generously contributed their time and talents to the Society and the profession. “Being a volunteer with the Nebraska Society of CPAs has not only deepened my connection to the profession but has also given me a platform to shape the Society’s future,” shared Past Chairman and Nominating Committee Chairman Lorraine Egger of CyncHealth in La Vista, Neb. “I encourage all members to dedicate some time, skills, and energy to advancing the accounting profession—it’s incredibly fulfilling and offers a great opportunity to contribute meaningfully,” she added. “Serving as chairman this past year has been a privilege,” said Society Immediate Past Chairman Kelly Martinson from Lutz in Omaha, Neb. “The connections I’ve made with fellow CPAs and our collective efforts to move both the Society and the profession forward have been invaluable. I hope more members will step up and take an active role in our shared success.” “Collaboration is key,” Egger emphasized. “The success of the Society depends on the ongoing dedication and involvement of our members.” “The Nebraska Society of CPAs has played an essential role in advocating for the profession on important legislative and regulatory matters,” added newly elected Society Chairman Brian Klintworth PRESIDENT’S MESSAGE CELEBRATING OUR LEADERS SOCIETY INTRODUCES NEW OFFICERS & BOARD MEMBERS FOR 2024-2025 BY JONI SUNDQUIST, NEBRASKA SOCIETY OF CPAs of HBE LLP in Lincoln, Neb. “Through our active involvement, we’ve worked to strengthen the profession and improve laws and policies that benefit not only CPAs but also the taxpayers we serve. I’m excited to continue that work in the coming year and to ensure our voice remains strong and influential in these critical areas.” “We are fortunate to have a remarkable group of skilled leaders stepping up this year to continue guiding our Society in a positive direction,” stated Martinson. “Congratulations to the newly elected officers and board members for the year ahead,” Egger added, “and thank you to those continuing their service on the Society Board of Directors.” Chairman Brian M. Klintworth, CPA, is a tax partner at HBE LLP in Lincoln, Neb. He graduated with highest distinction from the University of Nebraska-Lincoln with a Bachelor of Business Administration in accounting and finance. In 2015, he joined HBE as a tax intern and shortly after began his full-time career as an accountant. He has been instrumental in growing the firm’s tax preparation and consulting services. While at HBE, Klintworth earned a Master of Taxation in 2019 from the University of Denver, Sturm College of Law. Since 2021, he has taught income tax as an adjunct instructor at Concordia University Nebraska CONTINUED ON PAGE 8 7 nescpa.org
in Seward, Neb. In the community, Klintworth is a mentor and presenter at Academy Sessions for TeamMates Mentoring. He presently serves as chairman of the Nebraska Society of CPAs’ CPE Committee and as a member of the Society’s Public Policy and Taxation Committees. Klintworth graduated from the AICPA Leadership Academy in 2019 and played an active role in the Nebraska Leadership Seminar in Omaha, Neb., from 2015-2020. He is engaged to Amanda Clymer, an agribusiness lending credit officer at Farm Credit Services of America in Omaha, Neb. Chairman-Elect Jodi M. Eckhout, CPA, of Miller is a shareholder at Woods & Durham Chartered CPAs in Holdrege, Neb. A native of Lewiston, Neb., she earned a Bachelor of Science in accounting from Nebraska Wesleyan University, graduating with distinction, and a Master of Accounting from Montana State University in Bozeman, Mont. She started her accounting career with Galusha, Higgins & Galusha PC and continued working for Wipfli LLP after the firms merged, spending more than seven years working in Helena, Mont. In 2015, she returned to Nebraska, where she worked for McDermott & Miller PC and KSO CPAs & Advisors in Kearney, Neb., before beginning her career with Woods & Durham. At Woods & Durham, she works in small business and individual taxation with a specialty in agricultural businesses. Eckhout graduated from the AICPA Leadership Academy in October 2020, served as treasurer for the Helena (Mont.) Area Habitat of Humanity for six years, served on the Kearney (Neb.) Area Children’s Museum Board and Finance Committee from 2016 to 2019, and was president of the Council of Catholic Women at St. John Capistran in Amherst, Neb. Currently, she is chairman of the Amherst PTO. Eckhout has served on the Nebraska Society of CPAs’ Taxation Committee for seven years, presently as committee vice chairman, and was previously secretary of the Society Board. She and her husband Evan have a daughter, Ember, and two sons, Barrett and Lane. Secretary Heather E. Barr, CPA, of Liberty, Neb., has been the controller at Endicott Clay Products Co. in Fairbury, Neb., since 2017. She earned a Master of Professional Accountancy from the University of Nebraska-Lincoln in 2007. Barr began her career in public accounting at Kennedy and Coe LLC (now Pinion) in Salina, Kan. She also held accounting positions at Saint Francis Community Services in Salina, The Salina Country Club, and the Choctaw Nation of Oklahoma prior to making the move to Endicott. She is presently chairman of the Nebraska Society of CPAs’ Business & Industry Committee and is a graduate of the Nebraska Society’s Leadership Academy. She and her husband Lee, a farmer, have three children, Brooklyn, Logan, and Landon. Treasurer Grant H. Buckley, CPA, is a partner and fourth-generation accounting professional with Buckley & Sitzman LLP in Lincoln, Neb. He joined the firm in 2013 after spending three years with Deloitte & Touche LLP. Buckley graduated with highest distinction from the University of Nebraska-Lincoln, earning a Bachelor of Science in Business Administration in accounting, with minors in finance and sociology. He also received a Master of Professional Accountancy, with highest distinction, from UNL. Buckley is a board member and treasurer for the Community Action Partnership of Lancaster and Saunders Counties and also has served on the University of Nebraska-Lincoln School of Accountancy Junior Advisory Board. His wife, Kelsey, is a dentist and together they have two daughters, Libby and Claire. New Director Derrick J. Blum, CPA, is a shareholder at Iron Horse CPAs & Advisors PC in Norfolk, Neb. Born and raised in Norfolk, Blum graduated from Wayne State College in 2011 with a Bachelor of Science in Business Administration with an accounting concentration. He has been with the firm since 2008 and obtained his CPA license in April 2015. Blum’s areas of focus include income tax planning, consulting, and preparation, as well as preparation of financial statements for small to medium-sized businesses. He presently serves on the Nebraska Society of CPAs’ Taxation Committee. Blum and his wife Audrey, of Plainview, Neb., have three children, Dominick, Gavin, and Harper. He enjoys golfing as well as camping and traveling with his family. New Director Lauren E. Bond, CPA, is a senior manager at Deloitte & Touche LLP in Omaha, Neb. She joined the firm in September 2013, after graduating from Creighton University with a Bachelor of Science in accounting and finance. At Deloitte, Bond works with public companies within the consumer and technology sectors, as well as emerging growth companies. Beyond professional commitments, she is an active member of the community, serving on the board of Lauritzen Gardens, where she contributes to the growth and development of Omaha’s premier botanical center. From 2017 to 2024, she served on the Creighton Accounting Advisory Board, guiding the future of the accounting program at her alma mater. In her free time, Bond enjoys salsa dancing, a passion that brings energy and creativity to both her personal and professional life, attends as many ballets, plays, and musicals as she can around Omaha, and tries to keep up with her nieces and nephews. New Director Nicole L. Cooper, CPA, MBA, is the chief financial officer at Project Harmony in Omaha, Neb., one of the largest child advocacy centers in the nation. She graduated summa cum laude with a Bachelor of Science in Business Administration, majoring in accounting, from the University of Nebraska-Lincoln in 2015 and a Master of Business Administration from the University of Nebraska at Omaha in 2016. Following graduation, she began her career at Seim Johnson LLP, now Eide Bailly LLP, receiving her CPA license in July 2019. Cooper has also held accounting positions at Burlington Capital and the University of Nebraska at Omaha. She joined the military when she was 17 years old and served in the Hawaii Army National Guard for eight years, including deployments to Iraq and Kuwait in support of Operation Iraqi Freedom. Cooper is actively involved in community and professional organizations, including UNO’s School of Accountancy Advisory Board and High School Initiative Committee, as well as volunteering for St. Stephen the Martyr’s CONTINUED FROM PAGE 7 8 Nebraska CPA
Home and School Association. Cooper has served on the Nebraska Society of CPAs’ Accounting Careers Committee and presently serves on the Society’s Not-For-Profit Committee. She and her husband Charles take immense pride in their blended family, embracing the joys and responsibilities that come with raising four children. New Director Jill R. Trucke, CPA, joined the University of Nebraska-Lincoln College of Business in 2014. She is presently an associate professor of practice in accountancy at UNL, teaching a variety of classes including Intermediate Accounting II, Accounting for Business Decisions, and Using Accounting Information. Trucke also oversees UNL’s Discover Accounting program, geared toward high school seniors who have an interest in exploring careers in accounting and business. She graduated from UNL with a Master of Professional Accountancy in May 2000 and passed the CPA exam that same month. Upon graduation, she started her career as an auditor for Deloitte & Touche. During her 14 years at Deloitte, Trucke audited private and public companies in many different industries, specializing in broker dealers and employee benefit plans. She and her husband reside in Lincoln, Neb., with their son. They also have two daughters and a son-in-law. While her adult children live in different states, they enjoy hiking and visiting national parks as a family. New Director/AICPA At-Large Council Member Kelly A. Mann, CPA, is the CEO and co-founder of AuditMiner, a B2B SaaS program designed for auditors. Before founding AuditMiner, she spent 15 years in public accounting, serving clients as an auditor in mid-size firms and as a sole proprietor. Mann earned both her bachelor’s and master’s degrees in accounting from the University of Tampa and obtained her CPA license in 2009. A 2018 graduate of the AICPA Leadership Academy, she served on the AICPA’s Employee Benefit Plan Expert Panel for the 2023-2024 term and is currently an At-Large Member of the AICPA Council. She was recognized as one of the Top 25 Most Powerful Women in Accounting by CPA Practice Advisor in both 2023 and 2024. Mann grew up in Wahoo, Neb., and now lives with her husband and their three children in Omaha, Neb. Photos of all members of the Nebraska Society of CPAs Board of Directors may be found on the next page. Thank You! We also extend our sincere gratitude to the following individuals whose terms on the Society Board of Directors have come to an end: Megan C. Holt, CFO of Mutual of Omaha Mortgage in Omaha, Neb., and Thomas J. Purcell, III, JD, Phd, CPA, recently retired professor of accounting at Creighton University in Omaha, Neb. Holt has been on the Society Board for the past three and a half years and also serves on the Society’s Accounting Careers Committee, Investment Committee, and the Women in Accounting Committee. An active CPA since 1979, Purcell has served on the Society Board for three different terms, was chairman of the Society from 1998-1999, and has served on the Foundation Board of Trustees and numerous Society committees over the years. Purcell was the first academic practitioner to have chaired the AICPA’s Tax Executive Committee and the Nebraska Society of CPAs. Undoubtedly, leadership and active participation are the most valuable contributions you can offer to both your Society and your profession. We extend our gratitude to each and every one of these individuals for their continued dedication to the Society and the CPA profession. Joni Sundquist is president and executive director of the Nebraska Society of CPAs. You may contact her at (402) 476-8482 or joni@nescpa.org. Undoubtedly, leadership and active participation are the most valuable contributions you can offer to both your Society and your profession. 9 nescpa.org
2024-2025 NEBRASKA SOCIETY OF CPAs BOARD OF DIRECTORS CHAIRMAN BRIAN M. KLINTWORTH HBE LLP Lincoln CHAIRMAN-ELECT JODI M. ECKHOUT Woods & Durham Chartered CPAs Holdrege SECRETARY HEATHER E. BARR Endicott Clay Products Co. Fairbury TREASURER GRANT H. BUCKLEY Buckley & Sitzman LLP Lincoln IMMEDIATE PAST CHAIRMAN KELLY J. MARTINSON Lutz Omaha AICPA ELECTED REPRESENTATIVE SHARI A. MUNRO Frankel LLC Omaha AICPA ELECTED REPRESENTATIVE NOMINEE LORRAINE A. EGGER CyncHealth La Vista AICPA AT-LARGE REPRESENTATIVE KELLY A. MANN AuditMiner Gretna NEWLY ELECTED DIRECTOR DERRICK J. BLUM Iron Horse CPAs & Advisors PC Norfolk NEWLY ELECTED DIRECTOR LAUREN E. BOND Deloitte & Touche LLP Omaha DIRECTOR LAURIE ANN J. BUHLKE Contryman Associates PC Grand Island NEWLY ELECTED DIRECTOR NICOLE L. COOPER Project Harmony Omaha DIRECTOR JUSTIN M. HOPE Eide Bailly LLP Elkhorn NEWLY ELECTED DIRECTOR JILL R. TRUCKE University of Nebraska-Lincoln Lincoln WEST NEBRASKA CHAPTER PRESIDENT DANA J. WEBER Dana J. Weber, CPA Scottsbluff 10 Nebraska CPA
1FSB.BANK/Salt-Creek EXPERTISE YOU CAN TRUST SPECIALIZED CPA LENDING: A LENDING DIVISION OF SPECIALIZED CPA LENDING: EXPERTISE YOU CAN TRUST BY SALT CREEK CPAS TODAY HAVE SEVERAL OPTIONS WHEN SEEKING A LOAN to grow their business. Navigating the complex landscape of financing options can be challenging, especially when it comes to finding a lender who truly understands the unique needs of your industry. As a direct lender with an experienced team dedicated to serving CPAs, Salt Creek understands the complexities of your business and has designed our loans to fit your business model. Partnering with a lender from Salt Creek who’s experienced in working with CPAs offers several advantages that can significantly impact your financial success and business growth. Understanding the CPA Industry: One of the primary reasons to seek a lender with CPA industry expertise is their deep understanding of the financial dynamics specific to your profession. The accounting industry is characterized by cyclical revenue patterns, particularly during tax season, and the nature of client payments can lead to fluctuating cash flows. An experienced lender recognizes these nuances and is better equipped to offer tailored financial solutions that align with your business cycles. Expertise in Cash-Flow Lending: Cash-flow lending is a critical aspect for CPAs, as opposed to the more traditional collateral-based lending. In cash-flow lending, the focus is on the revenue-generating potential of your business rather than the value of physical assets. For CPAs, whose primary assets are often intangible—such as client relationships and receivables—this approach can be far more beneficial. Not all lenders have experience outside of traditional collateral-based lending. Salt Creek has extensive experience in cash-flow lending and understands how to evaluate your practice’s financial health based on cash-flow statements, income projections and the stability of your client base. This knowledge allows them to provide financing options that support your growth and operational needs without the stringent requirements of collateral-based loans. Simplified Loan Experience: The idea of securing a loan for your business may seem overwhelming and complex. That’s why Salt Creek created a streamlined loan process designed with your business in mind. It’s their goal to make your loan experience simple and efficient. First, they provide an experienced loan advisor to guide you through your loan process. They strive to minimize the number of bank personnel that you need to interact with during a transaction and reduce the time you need to spend on your loan. Salt Creek uses cutting-edge technologies to keep our loan process straightforward. Their secure document portal helps quickly collect and organize your loan documents and offers a live dynamic checklist to keep you informed of what you need to do to complete your loan package. The loan process is designed to move through the stages of the loan faster and with less hassle. From pre-qualification to funding, Salt Creek’s experienced, highly trained team members will keep your loan on track. Building a Strong Relationship: Working with a lender who understands the CPA industry fosters a stronger, more personal relationship. Salt Creek is invested in the success of their clients and is more likely to take a holistic view of your business. They can provide valuable insights and advice, acting as a trusted financial partner rather than just a service provider. This relationship-building aspect is crucial, as it can lead to more favorable loan terms, quicker approval processes, and a more collaborative approach to solving financial challenges. Salt Creek understands the intricacies of the accounting profession, has expertise in cash-flow lending, and offers customized financial solutions providing the support you need to navigate the unique challenges of your business. By prioritizing a lender with industry experience, you position yourself to make informed financial decisions that align with the dynamic nature of your practice, ensuring that you have the resources needed to thrive in the competitive landscape of the accounting industry. To learn more, visit 1FSB.BANK/Salt-Creek. 11 nescpa.org
WHETHER FORMED BEFORE THE ADVENT OF MORE TAX advantageous entities or the result of utilizing specific planning opportunities, many farm and ranch families today still operate out of corporations. Rising land prices, low relative cash flow, and changes in tax law over the last two decades have made the transition of these family farm and ranch operations increasingly difficult. Multi-owner operations face substantial tax challenges when potential divisions are necessary to meet current objectives. For those advising family farm or ranch corporations, Section 355 of the Internal Revenue Code provides a valuable tool for agricultural businesses to divide into separate corporations without triggering immediate income tax consequences, allowing for further tax-planning opportunities down the road. What Is a Section 355 Transaction? Unlike liquidations, stock sales, or redemptions that trigger income taxes on asset transfers, a Section 355 spinoff, split-off, or split-up transaction allows a corporation to transfer ownership interests without recognizing a taxable gain, provided certain requirements are met. For agricultural businesses, this strategy enables the separation of assets—such as land, equipment, or operations like crop production or livestock—into distinct corporations, enabling flexible asset management while preserving corporate ownership. While each Section 355 transaction has different mechanics, they all ultimately result in one shareholder or group of shareholders having ownership in one corporation, while another shareholder or group acquires ownership in a separate corporation. Key Requirements for a Section 355 Transaction To qualify as a Section 355 transaction, several key requirements must be met. One of the requirements is that the transaction is driven by a valid corporate business purpose. The IRS has made clear that a transaction made solely to reduce federal taxes or personal planning considerations will not satisfy the corporate business purpose requirement. In the context of agricultural businesses, common valid purposes include resolving family disputes or financing issues, facilitating family estate planning, or improving operational efficiencies by separating different farming or ranching operations. Additionally, Section 355 requires that the underlying farm or ranch operation must be an active trade or business that has been continuously conducted for at least five years before the Section 355 transaction. This active business requirement has historically created a problem for agricultural operations that lease property to tenant farmers. While cash lease arrangements will often fail the active business requirement, certain crop share arrangements may be able to satisfy the active business requirement. In making this determination, the IRS will examine whether the corporation provides “substantial management and operational functions” apart from those activities performed by the tenant farmers. The IRS will look to a number of factors including whether the corporation plays a role in the hiring of seasonal workers, supplying and maintaining equipment, arranging financing, planning crop rotation, planting and harvesting, selling crops, and accounting to the tenant farmers. Planning Considerations When advising agricultural clients on a potential Section 355 transaction, professionals must ensure the operations and ultimate transaction are structured properly to meet each requirement. Here are some key items to consider: Document the Business Purpose: Family operations will want to begin to identify and clearly document these purposes early on in the process to ensure a division is possible. For example, if the proposed COUNSELOR’S CORNER BREAKING GROUND STRATEGIES FOR DIVIDING FARM & RANCH CORPORATIONS BY NATE PATTERSON & NICHOLAS BJORNSON, KOLEY JESSEN 12 Nebraska CPA
transaction is intended to resolve family disagreements or allow different branches of the family to focus on specific farming or ranching activities, this should be clearly outlined in corporate records and communications with the IRS. Review and Carefully Structure the Business Operations: Determine whether the agricultural activities being separated qualify as an active trade or business. It may be necessary to adjust the business model or more clearly identify the two separate operations to satisfy the IRS’ criteria for active involvement. Consider Asset Allocation: Carefully plan the distribution of assets between the corporations. The allocation must support the business purpose, ensure both corporations can operate independently while meeting the active trade or business requirement, and follow current ownership percentages in effectuating the split. Avoid Stock Transfers: Plan ahead for any stock transfers that may need to occur before or after the split. Transfers of a shareholder’s stock before or after a split can affect qualification for a Section 355 split. It is important these transactions are examined carefully and effectuated at the appropriate times. Obtain a PLR, Opinion Letter, or Transaction Insurance: To mitigate risks and ensure the transaction meets IRS standards, consider obtaining a Private Letter Ruling (PLR) from the IRS, an opinion letter from a qualified tax attorney, or transaction insurance. These measures can provide clarity and protection, helping to confirm that the Section 355 transaction will be treated as intended for tax purposes. Conclusion For farm and ranch corporations, a Section 355 transaction can provide a tax-efficient solution to separate business interests while maintaining the advantages of corporate ownership. However, careful planning is essential to ensure the transaction qualifies for Section 355 treatment. Professionals advising agricultural clients should pay close attention to the active trade or business requirement and ensure the transaction is backed by a valid corporate business purpose. Rising land prices, low relative cash flow, and changes in tax law over the last two decades have made the transition of these family farm and ranch operations increasingly difficult. Nate Patterson is an attorney in the Estate, Business Succession, and Tax Department at Koley Jessen. Patterson works closely with each client and their team of advisors to implement estate, business succession, and wealth and tax planning to ensure each client accomplishes their personal and financial objectives and leaves a lasting legacy. With hands-on experience operating and managing a family farm, he also provides “boots on the ground” expertise to agriculture clients and family businesses on planning matters specific to the ag industry. He can be reached at nathan.patterson@koleyjessen.com. Nicholas Bjornson is an attorney in the Tax Department at Koley Jessen. His experience in dealing with tax issues and implementing business strategies provides members of the agricultural community efficient solutions to achieve optimal tax benefits and economic consequences. He also represents taxpayers in disputes with the Internal Revenue Service, the Nebraska Department of Revenue, and other state and local taxing authorities. He can be reached at nicholas.bjornson@koleyjessen.com. CLASSIFIED AD Nebraska Practices for Sale: Gross Shown: NEW $195K Bellevue, NE EA Tax Practice. NEW $185K North Central NE CPA Practice. For more information Call (800) 397-0249 or visit www.APS.net THINKING OF SELLING? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. To learn more about our risk-free & confidential services, call Trent Holmes at (800) 397-0249 or email trent@apsholmesgroup.com. 13 nescpa.org
BY ACCOUNTING PRACTICE SALES UNDOUBTEDLY, PRACTITIONERS UNDERSTAND THE VALUE their expertise brings to their clients. We’ve all seen the results of clients who self-prepare their taxes using that well-known tax software (no need to mention names). Accountants would never advise clients to prepare their own taxes, sell their own home, or if they’re a business owner, sell their business on their own. So why does the DIY mentality prevail when it comes to selling a CPA practice? Well, tax and accounting professionals understand financial statements, amortization schedules, taxes, business law, and so forth, which is clearly much more than the average individual. However, a professional broker with market segment specialization brings more to the table than expertise in these areas. An experienced broker builds a market for practices that does not exist in a private-party transaction. One buyer provides very little, if any, room for negotiation. A broker brings a large pool of qualified buyers and creates a competitive environment. This gives the seller the opportunity to pick and choose who their successor will be. This is beneficial to the seller and to the clients. The right buyer is just as important, if not more important, than the right price and terms. Ideally, a seller can have both. Simply put, the greater the number of buyers to choose from, the greater the chances of finding the right buyer at the best price and terms. Another advantage of using a broker is the experience they bring to the table. A skilled broker has knowledge developed from guiding hundreds of deals. They know how to navigate these complex transactions, identify warning signs, and are very effective when it comes to calming the emotions of both buyers and sellers. A good broker brings exceptional negotiating skills and the ability to bring a deal to a successful close. When buyers hear a practice is “For Sale by Owner,” they immediately think DISCOUNT. Buyers understand very well that this results in less competition, which translates into a reduced price and favorable terms for the buyer. Another contributor to the DIY mentality is the belief that the seller will net more by avoiding commission. However, analysis of thousands of transactions has proved this to be inaccurate. Even after paying a commission, sellers will usually net more in a transaction where they have professional representation. You’re an expert at running your business—not selling it. Heed the advice you would give your clients; consult with an expert. It costs you nothing for a consultation, while getting this wrong may cost you a lot! Contact Accounting Practice Sales today at (800) 397-0249 or trent@aps.net for a free, confidential consultation. To learn more about buying or selling a tax practice, visit accountingpracticesales.com. WHY ACCOUNTANTS ATTEMPT TO SELL ON THEIR OWN 14 Nebraska CPA
Delivering Results - One Practice At a time Selling Your Practice? Call Today Sell By Year End! Scan Here Trent Holmes Trent@APS.net 800-397-0249 www.APS.net
2024 NESCPA COURSE CALENDAR DATE TYPE EVENT TITLE VENDOR LOCATION CPE/ ETHICS HOURS NOVEMBER 18 TX Select Estate & Life Planning Issues for the Middle-Income Client (Cosponsor w/ISCPA) Surgent Online 4 18-21 MA AHI Staff Training: Management & Leadership Essentials Training (Level 4) AHI Associates Online 24 19 PD Women’s Leadership Series: Women’s Entrepreneurship Day Virginia Society of CPAs Online 1 19 IT Working Remotely: The New Normal K2 Enterprises Online 4 19 IT Advanced QuickBooks Tips & Techniques K2 Enterprises Online 4 19 AA Construction Contractors: Non-Revenue & Non-Lease Accounting Considerations AICPA Online 4 19 AA Construction Contractors: Accounting & Financial Reporting Issues Surgent Online 4 20 IT Excel Tips, Tricks & Techniques for Accountants K2 Enterprises Online 8 20 AA Free to Members! Important NEST 529 End-of-Year Action Steps (For You & Your Client) Union Bank & Trust Online 1 21 IT Advanced Excel K2 Enterprises Online 8 21 TX Buying & Selling a Business: Tax & Structuring Overview Surgent Online 4 21 TX A Complete Tax Guide to Exit Planning Surgent Online 2 21 AA Accounting Data Analytics AHI Associates Online 2 22 AA Annual Update for Accountants & Auditors (Cosponsor w/ISCPA) AICPA Online 8 25 ET The Ethical Accountant’s Guide to AI: Balancing Innovation & Integrity Chuck Gallagher, CSP Online 2 25 TX Section 754 Step-Up in Basis: Understanding the Tax Issues for Partnerships & LLCs Surgent Online 2 26 AA Non-GAAP Financial Statement Options: Cash, Modified Cash & Tax Basis Surgent Online 4 26 TX Individual Tax Planning Ideas Surgent Online 4 26 AA AI & Data Analytics for Auditing: The Big Picture AHI Associates Online 2 26 MA AHI Staff Training: Advanced Management & Leadership Essentials (Level 5) AHI Associates Online 2 DECEMBER 2 TX This Year’s Best Income Tax, Estate Tax & Financial Planning Ideas (Cosponsor w/ISCPA) Surgent Online 8 3 IT Free to Members! Cybersecurity Essentials: Safeguarding Data in a Digital World ECS Technology Solutions Online 1 4 IT QuickBooks for Accountants K2 Enterprises Online 8 4 TX Representing a Client in an IRS Audit Surgent Online 3 5 IT Small Business Internal Controls, Security, and Fraud Prevention & Detection K2 Enterprises Online 8 5 TX Preparing Individual Tax Returns for New Staff & Paraprofessionals (Cosponsor w/ISCPA) Surgent Online 8 5-6 AA AHI Staff Training: Beginning In Charge (Level 3) AHI Associates Online 16 6 IT Microsoft 365 Deep Dive: Save More Time, Make More Money Higgins Advisory Online 4 6 TX Key Partnership & S Corporation Tax Planning Strategies Surgent Online 4 6 TX Tax Loss Limitations Imposed on Individuals & Pass-Through Entities Surgent Online 3 9 IT Excel Essentials for Staff Accountants K2 Enterprises Online 8 16 Nebraska CPA
DATE TYPE EVENT TITLE VENDOR LOCATION CPE/ ETHICS HOURS 9-10 TX Two-Day Federal Tax Update: Individual & Business The Tax U Round the Bend, Ashland 16 9-12 MA AHI Staff Training: Advanced Management & Leadership Essentials (Level 5) AHI Associates Online 16 10 IT Technology for CPAs: Don't Get Left Behind K2 Enterprises Online 8 11 IT Excel PivotTables for Accountants K2 Enterprises Online 8 11 MA Finance & Innovation: Reinvent Your Department & Your Company The Knowledge Institute Online 8 12 IT Excel Best Practices K2 Enterprises Online 8 13 IT Better Productivity Through Artificial Intelligence K2 Enterprises Online 4 13 IT Ethics & Technology K2 Enterprises Online 4/4 16 IT Excel Charting & Visualizations K2 Enterprises Online 4 16 IT Mastering Advanced Excel Functions K2 Enterprises Online 4 16 AA Financial Statement Disclosures: A Guide for Small & Medium-Sized Businesses Surgent Online 4 16 TX Securing a Comfortable Retirement Surgent Online 4 16 MA Innovative Forecasting & Budgeting: Moving Beyond the Traditional Techniques Surgent Online 4 16 TX S Corporation, Partnership & LLC Tax Update Surgent Online 4 16 AA New Revised 2024 Yellow Book Nebraska Society of CPAs NESCPA Office, Lincoln 8 17 IT Microsoft 365/Office 365: All the Things You Need to Know K2 Enterprises Online 8 17 AA Current Issues in Accounting & Auditing: An Annual Update Surgent Online 4 17 AA Governmental Accounting & Auditing Update Nebraska Society of CPAs NESCPA Office, Lincoln 8 17 TX Reviewing Individual Tax Returns: What Are You Missing? AICPA Online 4 17 nescpa.org
EMBRACING NEURODIVERSITY WHY CPA FIRMS SHOULD CONSIDER NEURODIVERSE EMPLOYEES BY KATIE PING, AUTISM ACTION PARTNERSHIP IN TODAY’S COMPETITIVE BUSINESS environment, employers in all professions and industries—including CPA firms— are constantly seeking ways to enhance their performance, innovation, and overall effectiveness. One often-overlooked strategy is the inclusion of neurodiverse employees, particularly those with Autism Spectrum Disorder. By tapping into this underutilized talent pool, CPA firms not only can address skill shortages but also bring unique perspectives and strengths to their teams. Programs like Autism Action Partnership’s Prosper Workforce Services provide essential support in this endeavor. The Case for Neurodiversity in CPA Firms ENHANCED PROBLEM-SOLVING & ANALYTICAL SKILLS Neurodiverse individuals, such as those with autism, frequently possess exceptional analytical and problem-solving skills. These traits are incredibly valuable in CPA firms, where precision, attention to detail, and strong analytical abilities are crucial. By leveraging these skills, firms can improve their accuracy and efficiency in financial analysis and reporting. “We’ve had amazing results for our employer partners through this program,” said Marcia Prideaux, program director for Prosper Workforce Services (PWS) at Autism Action Partnership. “We have an employer partner who was surprised by the production level of our participant his first week on the job, so much so that they audited the previous day’s work. The audit revealed not only above-average production but an accuracy level typical of a seasoned employee. That employer called us when they had an opening for a similar position, and they now employ several participants through PWS.” DIVERSE PERSPECTIVES A diverse workforce is a powerhouse of innovation. Neurodiverse employees bring unique insights and different ways of thinking, which can lead to creative solutions and improved processes. This diversity in thought can help CPA firms stay ahead in a rapidly changing business environment. IMPROVED COMPANY CULTURE Inclusive hiring practices contribute to a more accepting and supportive work environment. This can significantly enhance company culture, leading to higher employee satisfaction and retention rates. A workplace that values diversity is often more collaborative and positive, benefiting all employees. TALENT SHORTAGE SOLUTIONS CPA firms often struggle to find skilled professionals. By considering neurodiverse candidates, firms can tap into a largely underutilized talent pool, addressing skill shortages and enhancing workforce capability. This approach not only fills vacancies but also enriches the talent base with individuals who offer unique strengths. 18 Nebraska CPA
Supporting Neurodiverse Employees TAILORED RECRUITMENT PROCESSES Adjusting recruitment processes to be more inclusive can help neurodiverse candidates showcase their strengths. This may involve offering alternative ways to demonstrate skills beyond traditional interviews, such as practical assessments or work trials. WORKPLACE ACCOMMODATIONS Providing necessary accommodations is key to helping neurodiverse employees thrive. This can include flexible work schedules, quiet workspaces, and clear, concise instructions. Small adjustments can make a significant difference in an employee’s productivity and comfort. TRAINING & ACCEPTANCE Implementing training programs for staff to increase awareness and understanding of neurodiversity can foster a more supportive and inclusive work environment. Educating all employees about the benefits and needs of neurodiverse colleagues ensures a cohesive and collaborative team dynamic. Autism Action Partnership’s Prosper Workforce Services Autism Action Partnership (AAP) is dedicated to creating employment opportunities for individuals with autism. AAP’s Prosper Workforce Services program focuses on workforce development and provides vital support to both job seekers and employers. CUSTOMIZED JOB MATCHING Prosper Workforce Services works closely with employers to match job seekers with autism to roles that fit their skills and interests. This personalized approach ensures that candidates are placed in positions where they can excel. A PWS participant shared his experience working alongside program staff. “When I first started my job, I was not working as efficiently as I could have been and PWS came in and helped me develop more efficient ways of doing the tasks at hand.” WORKPLACE READINESS TRAINING PWS offers one-on-one coaching and group training to help individuals with autism develop the skills needed to succeed in the workplace, including communication, social, and technical skills. This preparation is crucial for smooth integration into the workforce. ONGOING SUPPORT Prosper Workforce Services provides continuous support to both employees and employers to ensure successful integration and job retention. This includes job coaching and mentoring, helping to address any challenges that arise. EMPLOYER PARTNERSHIPS AAP collaborates with employers to create more inclusive hiring practices and provide guidance on how to effectively support neurodiverse employees. These partnerships are essential for building inclusive workplaces that benefit from diverse talent. From CPA firms to labs to daycare centers, PWS finds fulfillment in addressing the needs of both job seekers and employers in our community. “We recently had PWS do an internal team training that taught our employees about neurodiverse individuals and their unique perspective on the world and workplace,” said Shameah Sayed with AuditMiner. “Within AuditMiner, we’ve been able to embrace a diverse range of thinking styles, which in turn has helped drive innovation and foster a more inclusive workplace culture.” By considering neurodiverse employees, CPA firms can gain a competitive edge, improve workplace culture, and contribute to a more inclusive society. Programs like Autism Action Partnership’s Prosper Workforce Services offer essential support, making it easier for firms to integrate and benefit from the unique strengths of neurodiverse individuals. Embracing neurodiversity is not just a socially responsible choice but a strategic business decision that can drive innovation and success in the accounting profession. Katie Ping is the development and communication manager for the Autism Action Partnership. You may reach her at (402) 763-8830 or kping@autismaction.org. By considering neurodiverse candidates, firms can tap into a largely underutilized talent pool, addressing skill shortages and enhancing workforce capability. 19 nescpa.org
Your clients rely on your guidance to make important financial decisions. When it comes to charitable giving, we can partner with you to simplify their giving and amplify their impact. Your Partner in Philanthropy » omahafoundation.org/advisors STOCK DONATIONS BY MEGAN STUBENHOFER-BARRETT, OMAHA COMMUNITY FOUNDATION FOR PRIVATE BUSINESS OWNERS, DONATING STOCK TO A nonprofit organization or Donor Advised Fund can be a powerful strategy to achieve both charitable and business succession goals. Katie Vogel, director of donor services at the Omaha Community Foundation, emphasized the significance of this approach, especially in the context of recent legal and tax developments. “Not only can these gifts help implement a business succession plan that calls for transferring the business to the next generation if that is your client’s goal, but donating stock can also help your client achieve charitable giving goals and benefit them when it comes to estate taxes,” Vogel said. With the estate tax exemption sunset looming at the end of 2025, this strategy has been gaining attention. “More accountants, wealth management professionals, and estate planning advisors are encouraging their clients to explore donating closely held stock,” Vogel said. “Without intervening legislation, many people with closely held stock may need to rethink both the timing and methods used to transfer business interests as they wrestle with the reality of a potentially hefty tax burden.” The valuation of closely held business interests is another crucial aspect to consider, especially in light of the U.S. Supreme Court’s 2024 ruling in Connelly v. United States. “The Connelly decision affected the way business interests are valued for estate tax purposes,” Vogel said. “This could result in higher taxable estates for business owners, making charitable stock gifts an even more appealing option.” Vogel also urged business owners and their financial advisors to work closely with a charitable giving expert considering these legal and tax changes. “Careful planning can help avoid potential pitfalls,” she said. Community foundations are particularly well situated to help business owners and their financial advisors navigate these changes. Community foundations are experts in handling complex gifts like closely held stock, ensuring a smooth transfer and proper valuation for tax purposes. Community foundations across Nebraska also have a deep knowledge of local nonprofits and community needs, so they can help build a giving plan that supports the organizations and causes most important to the donor. Megan Stubenhofer-Barrett is the director of marketing and communications at the Omaha Community Foundation. Learn how you can partner with the Omaha Community Foundation by calling (800) 794-3458 or visiting omahafoundation.org. Disclaimer: This article provides an overview of the possible tax advantages of donating closely held stock and is not intended to provide tax or legal guidance. 20 Nebraska CPA
Lyndee J. Black 1952-2024 Nebraska Certificate #1327 Society Certificate #1714 47-Year Member 2008 NESCPA Distinguished Service to the Profession Award Winner David W. McNally 1948-2024 Nebraska Certificate #1283 Society Certificate #0937 50-Year Member Ronald F. “Ron” Ueberrhein 1937-2024 Nebraska Certificate #1016 Society Certificate #0682 54-Year Member Past Society Chairman 1992 NESCPA Distinguished Service to the Profession Award Winner Herman D. Weist 1936-2024 Nebraska Certificate #0558 Society Certificate #0361 64-Year Member Past Society Chairman The Society has made a donation to The Foundation of the Nebraska Society of Certified Public Accountants in memory of these individuals. 21 nescpa.org
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