Midlands Business Journal • JANUARY 10, 2020 •
FINANCIAL AND TAX PLANNING A section prepared by the staff of the Midlands Business Journal
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January 10, 2020
Get into healthy financial habits; mind retirement account changes in the new year Timely tax considerations include the by Michelle Leach When it comes to new year’s resolu- increased standard deduction from $12,700 tions, many Americans are trying to trim to $24,400 for a married couple, and the the fat as it relates to their superfluous limitation on the deduction for state and spending, while bulking up their bank local taxes to $10,000 per year, which Seelhoff noted will make itemizing less accounts. beneficial for many taxpayers. “Good financially-fit habits “A strategy to maximize the really come down to how much tax benefits of your charitable you are saving and ultimately contributions is to bunch those how you are maximizing those contributions into the years you savings,” said Financial Planitemize, and take the higher ning Association of Nebraska standard deduction in the othPresident Jay Nelson, who douer years,” he said. “A donor bles as director of financial planadvised fund can be used to ning at Nelson, Van Denburg & bunch several years’ worth of Campbell Wealth Management charitable contributions, while Group, a SEC-registered inallowing you to continue donatvestment advisor. “We try and Hunt ing to your preferred charities encourage clients to save at least 15% to 20% of their income through each year.” Business owners need to consider 401(k)s, IRAs or other investment vehicles. Not all clients can afford to save that the 20% deduction for qualified business large of a percentage of their income. So, income, Seelhoff said, which allows them when a client receives a raise, we encour- to deduct up to 20% of their income genage them to save as much of that raise as erated by the business each year. Plus, they can take advantage of the Section possible (rather than spend it).” 179 deduction — immediate expensing of Where one saves matters. “The No. 1 place to invest the money up to $1 million of new asset purchases you are saving is toward your 401(k) to (from $510,000). “The bonus depreciation has been ensure you are receiving all of your employer match,” Nelson said. “We work with liberalized to allow a business to expense our clients to determine the best savings up to 100% of both new and used assets vehicle … they can utilize that will best fit their financial and tax situation.” Get into the habit of paying down debt, highest interest rate debt first. “Make the minimum monthly payment on all your debt obligations but allow any excess cashflow to go toward paying down the highest interest rate debt,” he said. “Remember, don’t add debt while paying down debt. For example, if you are working to pay down your credit card debt but are adding to your balance monthly; you are essentially bailing water out of a boat without fixing the hole first.” Bland & Associates CPA Michael Seelhoff referred to the “timeless” notion of setting up a budget each month. “Without a spending plan, it is easy to spend money mindlessly, with very little to show for it,” he said. “Increase your retirement plan contribution at work. If you received a raise, consider putting the additional cash flow into your retirement plan. You aren’t used to living on the money. So, it should be easy to increase your contributions.” And mind the emergency fund.
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Michael Seelhoff, CPA at Bland and Associates. used qualifying property in the year of purchased,” he said. As a result of the Tax Cuts and Jobs purchase,” he said. Seelhoff suggested taxpayers realizing Act, Seelhoff noted the deduction for entertainment expenses and limitations on capital gains should consider reinvesting deducting meal expenses, as well as the the proceeds in an “opportunity zone,” which can defer the recognition of capital expanded bonus depreciation rules. “The TCJA allows a business to deduct gains and potentially eliminate related Continued on next page. 100% of the purchase price of new and
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Financial and Tax Planning — inside JANUARY 10, 2020
THE BUSINESS NEWSPAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS
THIS WEEK 'S ISSUE:
$2.00
VOL. 46 NO. 2
Prime Therapeutics makes investment in Omaha facility by Michelle Leach
Nebraska’s first Drybar opens; early traffic bodes well for salon specializing in blowouts. – Page 2
40 er d Un 40 Salon owner Stephanie Moss lives her passion for beauty every day. – Page 4
in ms ds Fir lan w d La e Mi th
Investments made in technology aim to improve client experience, protect data. – Page 24
With a presence in Omaha reportedly as old as the company itself, Prime Therapeutics is further solidifying its commitment to the metro, as it was poised to top 500 employees by year’s end after growing from fewer than 100 associates to more than 300 in around two years. The amenity-rich facility that the local team relocated to this fall was designed with room to grow, according to Josh Walker, Omaha-based senior director of member services. “We’re expanding and growing in such a fashion that the old building wasn’t meeting the requirements of where we were going as a company, and we were limited in the space,” Walker said in early December. “And a lot of our new buildings have been updated with new technology. We wanted it to be state-of-the-art, and so we can hire more people.” From its 10802 Farnam Drive location, Prime Therapeutics came about in 1998 as an alternative to for-profit drug makers Continued on page 9.
Senior Director of Member Services Josh Walker … Pioneering Pharmacy Benefit Manager bolsters commitment to metro region with talent, facility investments. (Photo by MBJ / Becky McCarville)
Full Fledged Brewing Co. brings craft brewing to the heart of Council Bluffs by Michelle Leach
When Full Fledged Brewing Co. opened its doors in the fall, it made history as the first craft brewery within the limits of the more than 165-year-old city of Council Bluffs. “We had to make sure it was rezoned before we signed any documents,” said Marshall Redmond, who doubles as an owner and brewmaster. “It was quite a
process. It’s been a blur over the last two years but the planning department was so helpful.” Redmond and his wife, Dessie, a full-time planner for the city of Lincoln/Lancaster County Planning Commission, debuted Full Fledged at 40 Arena Way, near I-29 and I-80 and the Mid-America Center campus. Redmond liked that the site Continued on page 9. EO Nebraska President and Metro Stars Gymnastics co-founder Erik Lilla … Cultivating a fellowship of like-minded entrepreneurs who can learn from each other and with each other.
EO Nebraska works toward increasing visibility, membership and diversity by Savannah Behrends
Brewmaster Marshall Redmond … Brewery gets off to a strong start by minding even the little details such as comfy couches and juice boxes for the kids.
Rolling into its 19th year, EO (Entrepreneurs’ Organization) Nebraska leadership has been focused on setting the structural groundwork for the coming years. “The deal is that entrepreneurs lead the group during one-year terms,” said current President Erik Lilla. “So year to year the hand-off varies and we wanted to create
some consistency.” The organization, currently with 89 members, functions as a fellowship of like-minded business owners and decision makers of companies with over $1 million in revenue. Through forums, workshops and conferences — locally, regionally and globally — members have the opportunity to learn from each Continued on page 10.