News and Events

Kohler & Smith Co., LPA Welcomes Shamus B. Cassidy

On August 2, 2010, Kohler & Smith Co., LPA welcomed its newest Associate Attorney, Shamus B. Cassidy, to the firm.  Shamus, a 2007 graduate of Capital University Law School (magna cum laude), focuses primarily in the areas of estate planning, disability/special needs planning, probate, elder law, taxation, corporate, business, and real estate matters.

Haiti Relief Donations Qualify for Immediate Tax Relief

Those who give to charities providing earthquake relief in Haiti can claim those donations on the returns they are completing this season, according to the Internal Revenue Service.  For those taxpayers who itemize deductions on their 2009 return, all cash donations—whether made by text message, check, credit card, or debit card—made between January 11, 2010 and March 1, 2010 are eligible.

Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.  Because this tax benefit is only available to taxpayers who itemize their deductions, those who claim the standard deduction are not eligible.

 

Contributions to foreign organizations generally are not deductible.  Information on organizations eligible to receive tax-deductible donations are listed in a searchable online database available on IRS.gov under “Search for Charities.”

 

A telephone bill satisfies the federal government’s requirement that a record be kept of any deductible donations made.  For all other contributions, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution.

If you have any tax questions regarding this new IRS provision, or if you have any other tax or legal questions, please contact Kohler & Smith Co., LPA.

2010 Traditional IRA to Roth IRA Conversion Opportunity

Beginning in 2010, taxpayers will be able to convert their traditional IRA to a Roth IRA, regardless of their income level or filing status.  What's more, the tax on the taxable income generated from a 2010 conversion may be deferred until 2011 and 2012.  While it is important to recognize that a conversion to a Roth IRA does trigger immediate taxable income, there are a couple of advantages to such a conversion:

• Roth IRA distributions are tax-free if they are qualified distributions--to be qualified, they must be made after a five-year holding period has passed and after the accountholder reaches age 59.5 or on account of death, disability, or the qualified purchase of a first home; and
• Roth IRAs are not subject to the required minimum distribution rules that apply to traditional IRAs.  Therefore, a Roth IRA accountholder who reaches 70.5 does not need to begin taking distributions.  Instead, the funds can continue to grow tax free until they are needed or passed on to heirs.

An IRA to Roth IRA conversion should be considered by individuals who: can afford the tax on the converted amounts; anticipate being in a higher tax bracket in the future than they are currently in; and have a significant amount of time before reaching retirement to allow assets to grow tax-free and recoup dollars that may have been lost due to the conversion tax.

Because any such conversion involves many complex and competing tax considerations, it is important to fully analyze the advantages and disadvantages of an IRA to Roth IRA conversion.  If you are interested in this significant opportunity, or if you have any tax or legal questions, please call Kohler & Smith Co., LPA.

Marc Smith Named as Receiver for Bicentennial Plaza

Judge Timothy Horton appointed Mr. Smith as Receiver for the property, located at 250 Civic Center Drive in Columbus, on August 27, 2009.  The Bicentennial Plaza building is one of the largest multi-tenant office buildings in Central Ohio.

Click here to read more from Columbus Business First's September 1, 2009 article.

Click here to read more from Columbus Business First's September 4, 2009 article.