4
• JANUARY 15, 2021 • Midlands Business Journal
Financial & Tax Planning A section prepared by the staff of the Midlands Business Journal
January 15, 2021
Legislative changes lead to new opportunities for taxpayers by Gabby Hellbusch
Professionals in the financial and tax planning sector say change has been evident across the industry, largely due to new legislation. Dan Torczon, director at Hancock Dana, said the stimulus packages signed in 2020 provided a lot of opportunities for taxpayers, particularly in the area of the Paycheck Protection Program. “The most recent development in this area included clarification that expenses incurred using Paycheck Protection Program funds are tax deductible, and this is a big win for McDevitt business owners,” he said. “Also, the legislation approved a second round of PPP funds available to entities that meet certain qualifications, and this will be a significant help for entities that struggled in 2020.” According to Torczon, business owners continue to increase their demand for additional services beyond the traditional compliance services, such as financial statement assurance services and tax return preparation.
“The use of analytics and data visualization tools to identify business trends and analyze key performance indicators continues to provide value for business owners,” he said. “I expect these trends to continue to increase in the future, as business owners continue to utilize these services to maintain and increase profitability in their respective companies.” R e c e n t l y, M i chael McDevitt, partner at BKD, said there has been an increase in the number of years that net operating loss (NOL) may be carried back by businesses and individuals to offset prior year income. Bedient Prior to the CARES Act, NOLs were only able to be carried forward and could only offset 80% of taxable income in any one year. “Under the CARES Act, NOLs generated in tax years 2018 to 2020 are now allowed to be carried back five years, which may allow for taxpayers to obtain a greater refund when offsetting income that was taxed at a higher rate prior to the Tax Cuts and Jobs Act of 2017,” he said.
Dan Torczon, director at Hancock Dana. In addition, McDevitt said the recently up to $10,000 per quarter in qualified wagpassed Consolidated Appropriations Act es paid to an employee,” McDevitt said. of 2021 updated the CARES Act and now “BKD has worked to develop a process in allows businesses to take advantage of determining if the clients qualify for this the Employee Retention Credit even if the credit, as well as a template to assist in business received a PPP loan. calculating the credit.” “This credit provides eligible employChris Bedient, partner at HBE Wealth ers with a refundable tax credit of 70% of Management, said the Tax Cuts and Jobs Act passed in December 2017 made several
changes to the tax tables. “These reduced rates are due to sunset in 2025 — potentially earlier — and bring many meaningful planning opportunities front of mind for clients; charitable giving with appreciated securities, donor advised funds and/or Individual Retirement Accounts for those over age 70.5, converting pre-tax Individual Retirement Accounts to Roth IRA funds and evaluating the timing of paying off a mortgage,” he said. Bedient said the most significant factor that has influenced the industry over the past year is how clients reacted to significant stock market volatility. “A well-developed financial plan begins with an investment policy statement; identifying the financial objectives and constraints for a client, which ultimately results in selecting the appropriate asset allocation for the portfolio,” he said. “There are several considerations to evaluate when determining the asset allocation: desired return and volatility, time horizon and liquidity needs. Once these factors Continued on next page.
Financial & Tax Planning — inside JANUARY 15, 2021
THE BUSINESS NEWSPAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS
THIS WEEK 'S ISSUE:
$2.00
VOL. 47 NO. 3
Agemark Senior Living targets memory care community niche by Richard D. Brown
For 30 years, Gilden Tree pioneers natural care products. – Page 2
40 er d Un 40 Paben makes a career out of building, improving communities. – Page 3
J LB town n w Do
Downtown Lincoln organizations provide much-needed growth, respite and support. – Page 21
From a stationary Studebaker Cruiser four-door sedan with an AM radio blasting the ‘50s and ‘60s hits of Connie Francis and Frankie Valli to a courtyard with walking paths and a putting green, game rooms, art studios and kitchens, more senior living providers are finding there’s a steady market for specialized communities targeting memory care. One of the largest and fastest growing providers in eastern Nebraska and western Iowa is Agemark Senior Living, which has opened a $10 million, 30,000-square-foot, 40-resident community in Elkhorn. The property is one of 23 owned by Agemark Senior Living and operated under the CountryHouse Residence name. Agemark, a family-owned corporation based in Orinda, California, has grown to a half dozen such properties including three in Lincoln, two in Omaha and one in Council Bluffs. Last year Agemark built facilities in Cedar Rapids, Iowa as well as Folsom, California. The strong Continued on page 9.
COO Martin Hug … New Elkhorn facility emphasizes need for memory care as senior living organization grows. (Photo by MBJ / Becky McCarville)
Patriarch Distillers steps onto national scene with partnership, national awards by Savannah Behrends
Humble to his core, you won’t find Patriarch Distillers founder and CEO Jeff Hadden bragging about the company’s accolades, which this year alone includes four medals at the U.S. Open Whiskey & Spirits Championship, ultimately making Patriarch Distillery the 2020 Grand National Champion, in addition to other awards. “We’ve done pretty well,” Hadden said. “I don’t like to talk about
[the awards], but you have to have accolades to justify your existence in this arena.” The La Vista-based distillery and tasting room that’s tucked away in an industrial area off of 120th and Giles streets has been in business for seven years and is gearing up for an explosive 2021. On Jan. 4 of this year Patriarch Distillers, which is the parent company of Soldier Valley Spirits, Continued on page 9.
District Manager Kyndall Weiss … Bellevue store first of two locations in the state for brand, which allows patrons to customize scents and ingredients and watch products as they’re being made.
Soap-making gets a makeover as Buff City Soap debuts in Nebraska by Michelle Leach
Founder and CEO Jeff Hadden … Partnership launches distillery onto the national level, company remains committed to the Omaha-metro area.
Within a week of opening the first Nebraska Buff City Soap store in Bellevue last month, Curt Bowen debuted the state’s second location in Kearney. These stores are just the beginning of more than 15 makeries the entrepreneur and local franchisee aims to open. “Being able to offer soap products that help people feel clean and safe has helped us
continue to drive forward and serve our communities,” Bowen said. “We also have made many modifications in our day-to-day operations to help us protect our customers and employees, and we will continue to do so as health department guidelines continue to evolve.” The stores at 101110 South 15th St. and 5210 2nd Avenue in Kearney join a reported 50-plus Continued on page 8.