SFLG - MHBM December 11 2017 by South Florida Legal Guide

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MONDAY, DECEMBER 11, 2017

YOUR GUIDE T O L AW, A CCOUN T ING & F IN A N CE

YIP Associates : Forensic Accounting for Challenging Cases

Also: • Florida’s Cannabis Law - A Brief History • Income From the “Sharing Economy” • Year-End Charitable Gift Planning in a Transitional Year • Preventing Identity Theft • Tax Considerations for Technology Purchases www.sflegalguide.com

MONDAY, DECEMBER 11, 2017

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WHO AND WHERE ARE WE AS A SOCIETY? If you follow #Metoo or #yotambien on Twitter, it seems there is a new revelation of improper behavior almost every day. After years or decades of holding their secrets, men and women who have been the targets of sexual harassment or assault are speaking out. In response, there seems to be no end to the different excuses: “It was 5, 10 or 20 years ago; I am embarrassed and ashamed; I don’t recall this person; I never had an affair...” Personally, I am glad these revelations are finally coming to light. But it is essential that there also be consequences for the men (and women) who engage in these reprehensible behaviors. But what bothers me is the fact that many of the abusers are being given as easy pass. This can and should not be tolerated. Where are we as a society when a sitting President is involved in an inappropriate sexual relationship with a White House intern, lies about it, then admits to lying

and lives on to become a political idol? Where are we when a powerful real estate developer brags on camera about touching women inappropriately and then is elected President? And then there are the allegations against powerful men like Weinstein, Moore, Franken, Conyers, Rose… the list just seems to never end. We must do better as a society to bring these behaviors to an end. Let us not turn a blind eye; let us not condone and let us not accept. Otherwise the Who and Where we are as a society will not be pleasant. On another note, a few issues ago we ran a very well received feature, “Perspectives on the Business and Legal Impact of Medical Marijuana On South Florida.” Following encouraging feedback and suggestions from several parties, we are introducing a series of monthly articles that will help interested parties learn and navigate the different laws and regulations that affect

this new industry. We are collaborating on this important topic with attorney Colin Roopnarine, a partner on Berger Singerman’s government and regulatory team who focuses his practice on administrative law and is very well learned on the subject. Our purpose, as always, is to bring to our readers the best professionals who can provide their insights and practical suggestions on timely subjects.

JACOB SAFDEYE

Jacob Safdeye Publisher

Where are we as a society when a sitting President is involved in an inappropriate sexual relationship with a White House intern, lies about it, then admits to lying and lives on to become a political idol? Where are we when a powerful real estate developer brags on camera about touching women inappropriately and then is elected President?

PUBLISHER JACOB SAFDEYE jacob@sflegalguide.com EDITOR IN CHIEF RICHARD WESTLUND editor@sflegalguide.com GUEST CONTRIBUTORS JOSHUA B. ANGELL STANLEY I. FOODMAN STEPHEN C. LANDE COLIN M. ROOPNARINE ERIC E. SANTA MARIA ON THE COVER From left, Thomas de Araujo, Maria Yip and Marcie Bour. SOUTH FLORIDA LEGAL GUIDE - BM Volume 1, Number 8, 2017 This is an independent supplement by South Florida Legal Guide Mailing address P.O. Box 630428, Miami, FL 33163. All rights reserved. All titles registered and may not be used without permission. Reproduction in whole or in part of any text, photograph or illustration without written permission of the publisher is strictly prohibited. The South Florida Legal Guide makes no guarantee regarding the accuracy of information presented, results reported, or safety of products or activities described herein. The publisher notifies readers that the hiring of a professional is an important decision that should not be based solely on advertisements. Before you decide, ask the professional to send you free written information about qualifications and experience. Contact: info@sflegalguide.com or call: (786) 879-7638 • www.sflegalguide.com

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MONDAY, DECEMBER 11, 2017

[ TAX COMPLIANCE ]

Are You Receiving Income From the “Sharing Economy”? You Might Owe Taxes and Penalties! BY STANLEY I. FOODMAN

STANLEY I. FOODMAN Individuals and groups utilizing technology to engage in transactions for generating sources of revenue from assets they own (homes or cars) — or services they provide — are part of the “Sharing Economy.” There are income tax filing requirements for reporting self-employment income, home rental income or determining if Individ-

uals providing services are employees or independent contractors. Although a taxpayer receiving income derived from the Sharing Economy might not receive a Form W-2 or Form 1099, income generated from side jobs or self-employment is nevertheless reportable. Income that is usually not subject to withholding is derived from:

• self-employment • interest • dividends • alimony • rent • gains from the sale of assets • prizes and awards; or • not enough being withheld from taxpayer’s salary, pension, or other income Taxpayers pay their income tax either through income taxes withheld from

payroll checks, estimated tax payments, or a combination of both. If taxpayers don’t pay enough income tax by the payment due date, the IRS will impose penalties. Taxpayers that are not under the control of an “employer” (such as the participants of the Sharing Economy) are required to utilize the Estimated Tax Method. A rule of thumb

is that if a taxpayer owed additional taxes in 2016, he will most likely have to pay estimated taxes for 2017. Estimated taxes can be paid directly to IRS electronically or by check on April 15th, June 15th, September 15th and January 15th. The increase in the size of the Sharing Economy is the result of people feeling more comfortable with online platforms to share their underused assets and a need to make extra income. The “what is mine can be yours” sentiment coupled with technology, social media and collaborative attitudes has caused a rise in the revenue derived from the Sharing Economy. The IRS Data Book for 2015 and 2016 reports that taxpayers have not been ad-

equately educated regarding how to report “self-employment” income. IRS statistics covering the five years from 2010 to 2015 reveal an increase of 40% in the number of taxpayers that paid penalties for underestimating their taxes. Don’t be a victim of your own making. Taxpayers in the Sharing Economy should seek professional tax advice as their tax situation will get complicated. Taxpayers don’t want the IRS to figure out the penalty for underpayment and then send them a Bill. Foodman CPAs and Advisors, 1201 Brickell Avenue, Suite 610, Miami, FL 33131, (305) 365-1111, www.foodmanpa.com, info@foodmanpa.com.

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YIP ASSOCIATES : FORENSIC ACCOUNTING FOR CHALLENGING CASES Inside a conference room on the 26th floor of One Biscayne Tower, a team of forensic accountants gathers to plan the next steps of a financial investigation. The case in question: a recently uncovered financial fraud. It will be in the hands and minds of the forensic team to unravel the extent of the fraud and to recover as many assets as possible in order to offer relief to the defrauded victims. This scenario above is quite common for the professionals at Yip Associates, a boutique firm specializing in forensic accounting and financial investigations. These experts are regularly called upon to investigate and dissect the inner workings of fraudulent activity. “In doing our work, we look at thousands of data points from business and bank records. Our role is often to determine what happened with the money or the business, and who was involved, in order to provide our clients with a clear understanding of what transpired,” said Maria Yip, the firm’s founder and managing partner. “We analyze the data, distill the relevant information, paint the picture of what happened by putting the pieces of the puzzle together, and then explain it in a way that will assist the judge or jury in making the ultimate decision.”

THE FOUNDER A native of Spain, Yip

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was born in Madrid and her family moved to the States soon afterwards. She grew up in Boston and Chicago before eventually settling in Miami in 1980. Her Cuban-born parents, as well as most of her relatives, reside in Miami. After high school, Yip enrolled at the University of Miami before transferring to Florida International University. “I was initially interested in the law as a career, but I was anxious to get into the working world and was confident that an accounting degree would open those doors,” she said. While attending FIU in the evening, Yip worked full-time at a small Miami law firm. “I began at the law firm as a runner, taking documents to the courthouse and, over time, handled administrative work for the firm.” About those days she said: “This experience gave me an opportunity to see litigators in action and served as great training for the work I would ultimately do.” After earning her accounting degree, Yip went on to work for global accounting firms Pricewaterhouse and Arthur Andersen. Many years later, Yip joined Grant Thornton to lead its Florida forensic accounting practice. In 2006, she was recruited to launch the Miami office of Daylight Forensics, an international consulting firm. She eventually decided to start her own firm in 2008. “By this point, having focused my entire career in

South Florida, I had a better understanding of the forensic accounting marketplace,” Yip said. “I realized that the bulk of the local forensic work was handled by the local accounting firms, so in the fall of 2008 I decided to open my own firm. I have not regretted the decision for a day.”

THE FIRM When it comes to building her firm, Yip has taken a methodical approach. “We have focused on doing quality work and being responsive to our clients, which include attorneys, fiduciaries, and governmental agencies,” she said. Indeed, her hard work and ability to effectively lead investigations has allowed Yip to establish her reputation within South Florida as an industry-leading forensic accountant. Since the founding of Yip Associates in 2008, Yip has grown her firm to 19 professionals and now has offices in Fort Lauderdale, Boca Raton, New Jersey, New York and Miami, the latter being home to its headquarters. The firm’s service lines have expanded to include business valuation, tax compliance on bankruptcy related matters, and integrity and compliance monitoring. The firm distinguishes itself with its diverse team of financial professionals who collectively hold several widely recognized professional certifications and licenses. The firm further differentiates itself with the multilingual

MARIA YIP AND HER TEAM capabilities of its team. The firm’s professionals are fluent in Spanish, Portuguese, Chinese, and Russian, uniquely positioning the firm to handle complex international matters. Yip, the firm’s founder and managing partner serves as a member of the Panel of U.S. Chapter 7 Bankruptcy Trustees in the Southern District of Florida, and also serves as Chapter 11 trustee, liquidating trustee, receiver, and assignee. Other partners at the firm also serve in fiduciary roles as receivers and assignees. “I really enjoy receivership and trustee cases because each case is different, and there are always many moving parts,” Yip said. “As a fiduciary, you want to have great lawyers and forensic accountants on your team, but ultimately you are the one making the final decision.” The firm’s professionals also have significant experience tracing assets, analyzing the flow of funds through businesses, and identifying potential assets or causes of ac-

tion that can provide recovery for creditors and investors. More recently, Yip has focused the firm’s growth strategy on government sector consulting services. “As a woman-owned and minority certified business, the firm is well positioned to pursue opportunities to work as the prime contractor or subcontractor on large-scale federal, state and local government projects in Florida, New York, and New Jersey.” she said. Yip Associates’ team members have provided integrity monitoring, construction auditing, risk mitigation, program compliance and other forensic accounting and consulting services to many of the major New York and New Jersey state and city agencies. For instance, the firm currently provides integrity monitoring and compliance services to the Port Authority of New York and New Jersey in connection with large scale capital construction projects. Other government

sector consulting projects include assisting the New York Governor’s Office of Storm Recovery with an assessment of its internal controls, policies, and procedures related to multi-billion dollar Hurricane Sandy relief programs, as well as providing valuation and forensic accounting services to the New York State Thruway Authority.

THE FUTURE Reflecting on her career, Yip says she has found the ideal role, managing a forensic accounting firm that draws on her passion for accounting, the law, and business. Whether the task at hand is the investigation of a Ponzi scheme, acting as fiduciary, or monitoring a large scale government project, Yip Associates has the capability and an eagerness that is well summarized in the words of its founder: “I love the work that I have been doing for the past 24 years, and I am more excited than ever about the future of our firm.”

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MONDAY, DECEMBER 11, 2017

FLORIDA’S CANNABIS LAW - A BRIEF HISTORY BY COLIN M. ROOPNARINE

Any discussion on marijuana, medicinal or otherwise, begins with the federal government’s classification that marijuana is a Schedule I substance. This means that the Government through the Controlled Substances Act defines marijuana as follows: 1) a drug with no currently accepted medical use; 2) has the highest potential for abuse; 3) has the potential for severe psychological or physical dependence; and 4) is considered one of the most dangerous drugs of all the schedules. Other Schedule I drugs include heroin, LSD and ecstasy. Under federal law it is a crime to kopen, rent, or maintain a place of business for purposes of manufacturing, distributing or dispensing marijuana. The caveat for the

remainder of this piece is that “legalization” is in reference to only state law. In 2014 Florida passed the “Charlotte’s Webb Act” that legalized low-THC marijuana to treat cancer, epilepsy, chronic seizures and chronic muscle spasms. The Legislature tasked the Department of Health (DOH) with promulgating rules to create a license application process growers (producers) and their dispensaries. Five were selected and, after legal challenges, additional ones were added. The following year, the state passed legislation that permitted the use of medical cannabis for patients with a terminal condition. In 2016 Florida’s residents overwhelmingly voted to pass Amendment 2 to the Florida Con-

stitution, “legalizing” medicinal marijuana for ten listed conditions or others related to the enumerated ten. Under this amendment which became effective on January 3, 2017, the DOH had six months to promulgate rules to implement the amendment, and three months after that to implement the program. The Legislature also passed legislation that clarified the amendment’s language. The DOH has since promulgated rules on a rapid basis to comply with the statutory requirements. The legislation authorized the DOH to license any prior applicant under “Charlotte’s Web” that met certain conditions including whether it had a challenge pending for not previously obtaining a license. The DOH was also tasked with

licensing additional applicants by October 3, 2017, that would result in a total of ten licenses, with three meeting the following criteria – one should be issued to an applicant who is a member of the Black Farmers and Agriculturalists Association – Florida Chapter and a class member in the Pigford case; and, for up to two, preference is given to applicants who can demonstrate participation in the citrus industry, whose facility can be converted to the processing of marijuana. All is not well as there have been lawsuits filed that challenge the constitutionality of the Black Farmers and citrus industry carve-outs (more on that in the coming article). That said, the DOH issued new rules and a new application form at the end of September, but has

Preventing Identity Theft BY JOSHUA B. ANGELL

Living in a technologically advanced, fast-paced society has many benefits for consumers, especially during the holiday season. Unfortunately, this has also given a rise in identity theft. We have seen an increasing number of security breaches and company hackings in the past decade, putting thousands of people’s personal information at risk. Consumers need to take extra precautions today in order to avoid identity theft. Here are 10 ways in which you can help prevent against identity theft: 1. Use your credit card

or pay with cash whenever possible. 2. Don’t give out your social security number unless it is completely necessary and secure it in a safe place. Don’t carry it around with you or in your wallet. Store all other personal information in a safe place at home and at work. 3. Check your three-free annual credit history report from the three major credit agencies. Verify that all activity represents your own. You can order them for free from Annualcreditreport. com. 4. If you are a credit card

holder, check to see if you receive a free updated FICO score every month. Most credit cards now offer this feature to their customers. Check to see what causes any changes in your score, if any, to monitor any possible fraudulent activity. 5. Don’t give out any personal information or respond to unsolicited requests whether by phone, mail or other online communications. 6. Avoid using public WiFi networks or computers to access personal or information-sensitive accounts, such as bank accounts, retirement

JOSHUA B. ANGELL accounts, or other accounts containing your personal address, name, information and payment information. 7. Collect your mail in a timely manner. Avoid accumulating mail in your mailbox and place a hold on your mail if you will be away for several days. Shred any credit offers, account statements, receipts or other

COLIN ROOPNARINE not opened the application period for license applications. For now, despite the increasing number of patients, and the delay in processing of patient identification cards by DOH, we wait… Colin M. Roopnarine is a partner on Berger Singerman’s Government and Regulatory Team who focuses his practice on administrative law. Roopnarine can be reached at croopnarine@bergersingerman.com, www.bergersingerman.com

documents containing sensitive information prior to recycling or tossing them. 8. Install anti-virus and firewalls on your computer and other electronic devices as necessary. Keep these programs up to date. 9. Continuously change your passwords for any database or device you use that contains sensitive and/ or personal information. Make sure to create strong passwords that would be hard for others to guess. 10. Monitor your account balances, credit card charges and other account transactions on a regular basis in order to identify any fraudulent activity. If you encounter any instance of identity theft, make sure to request a freeze of your credit reports imme-

diately and report it to the Federal Trade Commission (FTC) online at IdentityTheft.gov or by phone at 1-877-438-4338. Report your identity theft to your local police station if the identity thief is someone you know, the thief used your name with the police or otherwise a creditor or other company requires you to provide a police report for your identity theft. Joshua B. Angell, CFA, ASA, CPA/ABV, is the senior managing director of the Valuation Advisory Services and Litigation Practice Group of Ellrich, Neal, Smith & Stohlman, P.A., in Palm Beach Gardens. Angell can be reached at (561) 624-0355 or josh@ensscpa.com

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MONDAY, DECEMBER 11, 2017

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Tax Considerations for Technology Purchases BY ERIC E. SANTA MARÍA

Many businesses and consumers often look to buy the top tech gadgets and electronics equipment to take advantage of sales and discounted prices during the holiday season. Depending on the use of these electronics, purchases made before end of year may be eligible for a direct tax write-off. There are a several considerations that businesses and consumers should keep in mind. • The Internal Revenue Service does not allow tax deductions of personal, living, and family expenses. Accordingly, it is important that purchases of electronics and tech gadgets be both ordinary and

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necessary for a business purpose to be tax deductible. An ordinary business expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for the business. • Televisions, laptops, desktop computers, printers, iPads, smart phones and other tech gadgets. The Internal Revenue Service classifies most of these electronics in asset class 00.12 subject to a 5 year depreciation recovery period. • Tax write-off now or spread over five years. Tech equipment purchases can be deducted immediately or spread over the

depreciation recovery period. In 2017 businesses can take Internal Revenue Service Section §179 to expense (i.e. deduct immediately) the entire cost of the equipment to a maximum of $510,000 for the first $2,030,000 million of equipment placed in service by December 31, 2017. Businesses can also take advantage of the Section §179 expense immediately for “off-the-shelf ” software. If 2017 has been good year and the goal is to minimize tax liability before end of year, the Internal Revenue Service §179 is ideal. If a business had a difficult year, they may elect to spread the depreciation deduction over the five-year

recovery period. • Listed Property. The Internal Revenue Service classifies electronics such as iPads, computers, tablets, and smart phones under a special classification for tax purposes called Listed Property because they all lend themselves for both business and personal use. It is important to track the usage of Listed Property by keeping a log of personal and business use. The Internal Revenue Service will request written documentation to substantiate business deductions. If business use is less than 50 percent, Internal Revenue Service Section §179 will not be allowed. • De Minimis Safe

ERIC E. SANTA MARÍA Habor Election. Certain electronics, tools, and supplies determined to have a useful life of 12 months or less are eligible to be directly expensed up to $2,500 per invoice per the final tangible property regulations. This includes some electronics that were previously required to be capitalized or expensed under Section §179 tax regulations or depreciated. Eligible businesses may qualify to expense up to $5,000 per item. The De Minimus Safe Harbor election, which is filed annually with the business tax return, simplifies record keeping and allows for more current year deductions of many gadgets and supplies that historically had to be capitalized. Businesses must however, have an accounting policy in place consistent with such treatment. • Employees can use electronics to work from home. Consumers

working from home for their employers may also be able to deduct a portion of qualifying electronic purchases as employee unreimbursed business expenses on their personal tax returns. Employee unreimbursed expenses are reported on Form 2106, and deducted on the individual’s Schedule A with other itemized deductions subject to a 2% limitation on adjusted gross income. This means that only the portion of the unreimbursed business expenses above 2 percent of the individual’s adjusted gross income will be included as an itemized deduction. If the individual does not itemize, no deduction can be taken. Eric E. Santa María, CPA/ABV/CFF, CAA, is a partner specializing in accounting, tax, and litigation support services at Verdeja De Armas Trujillo LLP in Coral Gables.

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ANDREW ELLENBERG

ANDREW NEEDLE

MEDICAL MALPRACTICE, PERSONAL INJURY

NEEDLE & ELLENBERG, P.A.

1401 BRICKELL AVE., SUITE 900 MIAMI, FL 33131 305-530-0000 AELLENBERG@NEEDLEELLENBERG.COM WWW.NEEDLEENBERG.COM

1401 BRICKELL AVE., SUITE 900 MIAMI, FL 33131 305-530-0000 ANEEDLE@NEEDLEELLENBERG.COM WWW.NEEDLEENBERG.COM

Andrew Ellenberg represents individuals and families who have suffered catastrophic loss as a result of medical negligence, defective products, auto and aviation accidents, and the abuse or neglect of vulnerable adults and the elderly. Mr. Ellenberg is AV-rated by Martindale-Hubbell, the highest rating for legal ability and ethics. He has been selected for inclusion in The Best Lawyers in America©, from 2009–2018, has been selected by Florida Trend magazine as one of Florida’s Legal Elite and Florida Super Lawyers, all for his representation of plaintiffs in personal injury and medical malpractice cases. Mr. Ellenberg has been named a South Florida Business Leader “Power Player”, is rated “10-Superb” for medical malpractice by Avvo, has been included in every edition of the South Florida Legal Guide “Top Lawyers” list and also named in Florida Monthly’s “Best Legal Eagles,”.

Florida Bar Board certified in civil trial law, following graduation from Cornell and the University of Miami, Andrew Needle began practicing with one of the premier injury and malpractice firms in Florida. Distinguished both in and out of the courtroom as a lawyer, author, and lecturer, Needle is the author of “Post-Trial Motions” Florida Civil Trial Practice, Chapter 18, Eleventh Edition, as well as Representing Plaintiffs in Medical Malpractice Cases “Current Challenges in Handling Medical Malpractice Actions: Statutory Protections, Expenses, and Societal Misconceptions”, 2012. Named one of South Florida’s Top Lawyers in medical malpractice by the South Florida Legal Guide since its inception, and selected as a “Heavy Hitter” in healthcare law by the South Florida Business Journal in 2006, Needle has been included in Best Lawyers in America® since 2007 in Medical Malpractice and Personal Injury.

MONDAY, DECEMBER 11, 2017

HARRY A. PAYTON LITIGATION

PAYTON & ASSOCIATES, LLC 2 S. BISCAYNE BLVD. SUITE 2300 MIAMI, FL 33131 305-372-3500 PAYTON@PAYTON-LAW.COM WWW.PAYTON-LAW.COM

Harry A. Payton, managing member of Payton & Associates LLC, is board certified by The Florida Bar as a specialist in civil trial and business litigation. Payton represents domestic and international corporations and high net worth individuals in complex business litigation matters involving commercial real estate, commercial foreclosures; lender liability; corporate, shareholder and partnership disputes; litigation involving fine art; intra-family business disputes; probate, will and trust litigation; and professional malpractice cases for plaintiff and defendant involving attorneys, accountants, architects and engineers. Payton was appointed to the Supreme Court of Florida’s Committee on Professionalism for the 11th Judicial Circuit, and chairs the mentoring program subcommittee. Payton is AV rated by Martindale-Hubbell and receives consistent recognition as a Top Lawyer in Complex Commercial Litigation and Real Estate Litigation in the South Florida Legal Guide and Florida Super Lawyers®.

PABLO S. QUESADA

ROLAND SANCHEZ-MEDINA, JR.

ROBERT THORNBURG

CORPORATE AND BUSINESS, SECURITIES

INTELLECTUAL PROPERTY

SMGQ LAW

ALLEN, DYER, DOPPELT + GILCHRIST, P.A.

201 ALHAMBRA CIRCLE, SUITE 1205 CORAL GABLES, FL 33134 305-377-1000 PQUESADA@SMGQLAW.COM WWW.SMGQLAW.COM

201 ALHAMBRA CIRCLE, SUITE 1205 CORAL GABLES, FL 33134 305-377-1000 ROLAND@SMGQLAW.COM WWW.SMGQLAW.COM

1221 BRICKELL AVE., SUITE 2400 MIAMI, FL 33131 305-374-8303 RTHORNBURG@ALLENDYER.COM WWW.ALLENDYER.COM

Pablo S. Quesada, a founding partner of SMGQ Law, is a corporate, securities and real estate attorney, handling both domestic and international transactions, and also assisting with corporate and stockholder disputes. Quesada has represented Fortune 500 companies, as well as privately held businesses, entrepreneurs and high-net worth individuals. He has a broad range of experience in negotiating contracts, including, stock purchase agreements, stockholder and operating agreements, manufacturing, distribution and licensing agreements, real estate purchase contracts and leases, and employment agreements, among others. Quesada has achieved an AV® Preeminent™ Rating by Martindale-Hubbell, and has been recognized in by his peers for his ability and professionalism in various publications, including the South Florida Legal Guide’s “Top Lawyers.” Prior to forming SMGQ Law, Quesada served as regional counsel for VISA’s Latin America and Caribbean Region.

Roland Sanchez-Medina, Jr. is a founding partner of SMGQ who concentrates his practice in the areas of corporate law, mergers and acquisitions, securities law, divestitures, joint ventures, finance, board governance, real estate transactions, including real estate financing, tax planning and structure, and international tax planning for inbound transactions. Sanchez-Medina has achieved an AV rating from Martindale-Hubbell, which is the highest rating possible regarding legal ability and professional ethics, and has been recognized in various publications by his peers as a top lawyer, including the South Florida Legal Guide, Florida Trend’s Legal Elite and SuperLawyers. He is a frequent speaker and panel member at programs and seminars on corporate, tax and real estate matters. Sanchez-Medina also serves on the Orange Bowl Committee and on the Board of Governors of The Florida Bar.

Robert Thornburg is a registered patent attorney and intellectual property litigation specialist with extensive experience in copyright, trademark, trade secret and technology-focused litigation, patent and trademark prosecution, and domain name disputes. Thornburg serves as President of the University of Florida Law Alumni Council, on the Association of Intellectual Property Firms’ Board of Directors, as well as the Copyright Society of the USA Executive Committee. Robert has been listed in Florida Super Lawyers since 2010, designated in Best Lawyers in America since 2013, and recognized as a Rising Star in the Daily Business Review’s 40 Under 40 in 2013. Thornburg is an active lecturer on IP topics and serves as a technology law expert for Miami television and radio.

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MONDAY, DECEMBER 11, 2017

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Advising Your Clients on Philanthropy: Year-End Charitable Gift Planning in a Transitional Year BY STEPHEN C. LANDE, DIRECTOR THE FOUNDATION OF THE GREATER MIAMI JEWISH FEDERATION

The end of the year is often an opportune time to consider financial and tax planning strategies, and this year it is especially true. We are all aware that Congress is considering what may be the most sweeping changes to the tax law in 30 years. Many of the proposed changes will affect your clients as individuals, their families and businesses. They may also affect the charitable organizations we all support and rely upon to improve the quality of life in our community. The modern income tax law is about 100 years old and the charitable income tax deduction has long been one of its mainstays. The theory is that through their good works, public charities shoulder a portion of the responsibility to take care of our neediest citizens that would otherwise fall to the government. We know changes in the tax law can affect both charities’ ability to attract contributions and the support they receive from government. There is every indication we can expect to see some big changes for 2018. The details of the legislation are evolving, but these are the proposed changes that may most affect your favorite charities as of now: • While most itemized deductions may be eliminated, the deduction for charitable

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contributions survives. • The standard deduction may increase significantly, perhaps doubling to $24,000. This will have the impact of reducing the number of people that itemize deductions on their tax returns and are thus able to benefit from the charitable income tax deduction and other deductions. • The estate tax may be eliminated or its exemption levels increased over time. Your clients still have time to take action that could reduce their income tax liability for 2017. I suggest that, this year especially, you urge them to consider the benefits of year-end giving, both personal and for those causes in the community that are important to them. There will continue to be some uncertainty as to the content of the legislation and its timing, but the Greater Miami Jewish Federation is encouraging its donors to speak with you, their professional advisors, and then: Shift income and deductions where possible. Deferring receipt of income to 2018 or accelerating deductions into 2017 by prepaying a deductible expense can lower this year’s bill. Accelerating the payments or increasing charitable contributions at year-end is an effective planning strategy to reduce your clients’ tax liability and get

needed financial support to their favorite charities sooner. Utilize appreciated securities for your charitable giving. Charitable contributions of long-term appreciated securities (those held for more than one year) remain one of the most tax-efficient ways to give. The investment markets have had a good run and are hovering at or near all-time highs. Many of your clients hold investments that have increased significantly in value, so it’s a good time for them to review their investment portfolios. These capital gains present an opportunity for your clients to take advantage of tax laws that encourage the contribution of appreciated assets to charity. Gifting appreciated securities directly to charity (rather than selling the assets and donating the cash proceeds) can significantly increase the amount of money your clients have available for charitable giving while providing a larger tax benefit. Charitable contributions of appreciated securities, including stocks, bonds and mutual fund shares are also one of the most tax-efficient ways underwrite your clients’ future philanthropy. Donating appreciated securities to create or add to a donor advised fund entitles your clients to a tax deduction for the full fair market value of such gifts,

and no capital gains is paid tax on any appreciation. The IRA Charitable Rollover is permanent. The rising investment markets have surely affected your clients’ retirement assets as well, so I should mention the IRA Charitable Rollover, which allows individuals over age 70 ½ to make tax-free gifts totaling up to $100,000 from a traditional IRA account directly to qualified charities. This is a very smart way to give if a client or a client’s family member meets the age requirement. Their plan administrator can make this happen. Other charitable gift planning strategies that can reduce your clients’ tax liability: • Create a life income plan such as a Charitable Gift Annuity or a Charitable Remainder Trust. In addition to a current charitable deduction, the Charitable Gift Annuity or Charitable Remainder Trust can provide your client an income stream with favorable tax treatment. • A Charitable Lead Trust pays income to charity for a period of years and then transfers the trust property to others, including family members. It can provide a current charitable income tax deduction as well as reduce federal transfer tax. The resources of The

STEPHEN C. LANDE Foundation of the Greater Miami Jewish Federation are available to you and your clients, in complete confidence and without obligation, as you consider this and other issues related to charitable gift planning. The changing tax law will no doubt influence your clients as they seek to fulfill their charitable objectives in a tax-advantaged manner, inspire and engage the next generation of their families and create a lasting legacy. For more information, please contact Foundation Director Steve Lande at slande@gmjf. org, or at 786-866-8623, or consult JewishMiami.org.

Best wishes to you and your family for a happy holiday season. Steve Lande is director of The Foundation of the Greater Miami Jewish Federation and serves as the Greater Miami Jewish Federation’s Authorized House Counsel. Before joining the Greater Miami Jewish Federation, he directed the Jewish Federation of Greater Pittsburgh’s endowment program for 18 years. A native of Iowa, Steve earned a law degree from Drake University and practiced law in Des Moines before joining the professional staff of the Jewish Federation of Greater Pittsburgh. SLande@gmjf.org