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Page 1

WINTER 2020 | VOLUME 36, NUMBER 1

QBI TAKE 2

Qualified Business Income Deduction Carryforward Issues for 2019

PAGE 15 529 Education Funding, Transfers and Un-Funding Traps and Tips

PAGE 20 Rental Real Estate Enterprise

2018-19

Annual Report PAGE 41


UNIQUE SKILLS

FOR

UNIQUE CPAs

May 28-29, 2020 Tampa +

Live Stream | CPE: Up to 16

CPAs working for the nonprofit sector face continuing changes in accounting standards. They also face the additional complexity of working with organizations whose missions serve unique stakeholders. This is why the annual Not-for-Profit Conference exists: to give you the skills, knowledge, and issues updates to prepare you for excellence.

FICPA.ORG/NFP

CONFERENCE HIGHLIGHTS: Cyber Security: Protecting Your Data and Best Practices — with Bob Minniti FASB Update & Leases — with Jeff Mechanick Board Reporting and Form 990/UBIT — with Ken Euwema


CONTENTS PRESIDENT/CEO Deborah L. Curry, CPA, CGMA EDITORIAL COMMITTEE David J. Hochsprung, CPA, chair Joel M. DiCicco, CPA Lynda M. Dennis, CPA David S. Holland, CPA Jonathan S. Ingber, CPA Michael S. Kridel, CPA Troy Y. Manning, CPA Ryan A. Myers, CPA Will Quilliam, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability, and editing requirements and restrictions. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit ficpa.org/letterstoeditor. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc. (FICPA), nor should statements be considered endorsements of products, procedures or otherwise. The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published quarterly by the Florida Institute of Certified Public Accountants, Inc., 3800 Esplanade Way, Suite 210, Tallahassee, FL 32311. Telephone: (850) 224-2727 or (800) 342-3197. Visit our website at ficpa.org. This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.

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QBI Take 2 — Qualif ied Business Income Deduction Carryforward Issues for 2019

FEATURES

15 20

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2020 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.

COVER STORY

DEPARTMENTS

529 Education Funding, Transfers and Un-Funding Traps and Tips Rental Real Estate Enterprise — Safe Harbor Provision for Qualifying as a Trade or Business for Purposes of Section 199A SPECIAL CONTENT

41

2018-2019 Scholarship Foundation Annual Report

2 4 6 25 34 36 38

President's Message Chair's Message News Briefs Staff Reports DOR Update CPAs in the Spotlight Marketplace

Visit issuu.com/ficpa to access and download the digital version of Florida CPA Today. WINTER 2020 | FLORIDA CPA TODAY

1


PRESIDENT'S MESSAGE

Anticipating Change — A Shift for the CPA Exam Major shifts are taking place in our business environment — occurring at exponential speed, requiring businesses and individuals to be nimbler and more anticipatory. Neglecting staying ahead of these critical shifts will force organizations into obsolescence. To survive, businesses must shift to stay even with, much less surge ahead, of the competition. And it comes as no surprise that technology is the most prevalent "shift changer" affecting our profession today. In response, research and potential revisions of the CPA Examination are underway. You may be aware of the proposed updates to the materials tested on the CPA exam. For those of you unfamiliar with this topic, I am summarizing a few of the key points. • There is a notable increase in the use of data analytics and machine robotics processing by corporations and CPA firms so that they may provide greater value in financial modeling, budgeting and increasing revenue while streamlining operations.

DEBORAH L. CURRY CPA, CGMA

To survive, businesses must shift to stay even with, much less surge ahead, of the competition. And it comes as no surprise that technology is the most prevalent "shift changer" affecting our profession today.

• Key questions under consideration: How can we best prepare our next generation of young CPAs to ensure they have the skills needed to, a) succeed in the profession of the future and, b) upon entering the work force rapidly assimilate and provide value-added business services? One method is to incorporate and test a level of technological knowledge in the CPA exam that will elevate the professions' expertise. The AICPA presented a proposal for updating the subject matter tested on the CPA Exam while preserving the focus on core knowledge and skills required of newly licensed CPAs. The AICPA first consulted with CPA firms to analyze how the rise of data analytics and technology will affect the role of newly licensed CPAs and then reexamined the core knowledge and skills essential to those entering the profession. An AICPA Exposure Draft and Invitation to Comment  was issued in December. This exposure draft proposes 46 content changes (removing or adding subject matter) but does not recommend a change to the current exam structure (16-hour, four-sections). The AICPA is planning for the updates to appear in the CPA Exam Blueprints, the document describing the material to be tested on the exam, by Dec. 31, 2020. If you would like to provide comments to the AICPA after reviewing the Exposure Draft, you may do so through April 30, 2020. Email your comments and questions to practiceanalysis@aicpa.org.

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FLORIDA CPA TODAY | WINTER 2020


5

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CASH MANAGEMENT

Learn to manage AR and AP more effectively. Find better methods to manage cash. Consider new cash forecasting techniques. Make meetings fun & productive.

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Understand how to create projected Balance Sheet and Cash Flow statements. Review advanced methods for assigning overhead. Learn how to fix a badly organized chart of accounts. Learn how to create better PowerPoint presentations.

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EMOTIONAL INTELLIGENCE

Learn why emotional intelligence is the critical success factor. Find out how to motivate the right way. Examine real-world business ethics cases. Learn better ways to deliver bad news.

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Earn respect for yourself and your team. Learn why “It’s All About Action!” Find out how to communicate your message quickly and clearly. Learn 10 tips for success and 13 signs of failure.

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Learn to think more critically. Understand how to network more effectively. Gain insights into managing compensation and bonus plans more effectively. Learn some of MS Word’s advanced features.

DAY 4

DAY 5

DEVELOPING CREDIBILITY

BECOME MORE EFFECTIVE


CHAIR’S MESSAGE

Hopes for Prosperous 2020 and Tax Season Survival Tips Happy 2020! It’s hard to believe that my year as Chair of the FICPA is already half over — or maybe a more positive spin is that it is ONLY half over and I have so much more to look forward to.

ABBY DUPREE CPA

Focus on the positives in your life and be happy, life is too short!

Thinking ahead to what the next six months will bring and some of my “hopes” for the FICPA, I am hopeful that: • The launch of the new and improved FICPA website is a grand success • The FICPA Council Strategy session in January produces great ideas for the upcoming year and provides for some good fellowship among the Council members • Our Government Affairs team has great results this legislative session that began on January 14 • The FICPA receives a LOT of applications for the Emerging Leaders program. Please encourage and support a young (35 and under) CPA that you know to apply for the next class. (Applications are due July 15, 2020.) • The FICPA Scholarship Foundation receives a LOT of applications from FICPA student members for 2020 scholarships. The applications open now through March • More members will apply to the FICPA Council, Board and/or a Standing Committee. We need you! Applications are due August 31, 2020. • Everyone will contribute at least $25 to the FICPA PAC in order to help make this election year a successful one • Each member can encourage at least one person to become a member of the FICPA. OK, I realize that might be a little aggressive, but one must aim high, right? • The recent passing of the Consolidated Appropriations Act assists many of you with some great planning opportunities — especially as you meet with clients during tax season • Each member has a smooth and stress-free tax season! Below, I’ve included a few of the things we are doing in our firm to help our staff relieve some stress during this time of year We have a very creative Firm Administrator, Tammy Creel, and she gets the credit for these stress relievers: • Bingo with prizes – spread out over a few weeks until all the prizes have been won • Easter Egg hunt with one Golden Egg – this hunt can last for days • Mini massages from licensed massage therapists • Car washes • Ice cream truck visits I ended my last column by encouraging everyone to look for the “positives” in their life. I think that is a good way to end this column as well. Focus on the positives in your life and be happy, life is too short!

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FLORIDA CPA TODAY | WINTER 2020


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NEWS BRIEFS

IRS UPDATE

IRS UPDATE

IRS issues standard mileage rates for 2020

IRS seeks applications for 2020 Electronic Tax Administration Advisory Committee

The Internal Revenue Service has issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: • 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019, • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and • 14 cents per mile driven in service of charitable organizations. • The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate, set by statute, remains unchanged. Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. See Rev. Proc. 2019-46 and Notice 2020-05 for additional information and limitations.

S A V E T H E D AT E

S O U T H F LO R I DA

CPE SUMMIT November 18-19, 2020

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FLORIDA CPA TODAY | WINTER 2020

Apply by Feb. 14 The Internal Revenue Service is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC). The ETAAC is an organized public forum for discussion of electronic tax administration issues, such as prevention of identity theft and refund fraud in support of the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. ETAAC members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation's tax industry, to fight identity theft and refund fraud. The IRS is looking for approximately 10 qualified individuals who will serve three-year terms beginning in September 2020. Applicants should have experience in such areas as state tax administration, cybersecurity and information security, tax software development, tax preparation, payroll and tax financial product processing, systems management and improvement and implementation of customer service initiatives. Applications will be accepted through February 14, 2020. Nominations of qualified individuals may be made by letter and received from organizations or the individuals themselves. Applicants should complete the ETAAC application. Apply for membership on the ETAAC. Email questions about the ETAAC and the application process to publicliaison@irs.gov.

New this year, the Accounting Show Next Era is moving to the Seminole Hard Rock Hotel & Casino in Fort Lauderdale! The new event will feature cutting-edge topics, new vendor learning labs, the industry’s best thought-leaders and a new name — The South Florida CPE Summit. Mark your calendar now as you won’t want to miss this two-day immersive event!


NEWS BRIEFS

FICPA NEWS

Florida’s Top Young CPAs Convene for Capstone Experience & Connections to Florida’s Business & Legislative Communities GRADUATES FROM THE 2019 CLASS: TALLAHASSEE

FT. LAUDERDALE

Michael White, Managing Partner, Indelible Solutions, LLLP

Travis Ouimet, Director of Accounting Juda, Eskew & Associates

JACKSONVILLE

Marie Rosier, Owner, MMR CPA

Lauren Maultsby, Senior Accountant, Carroll and Company, CPAs

FL State House Rep. Mike Gant Joins YCPAs at the Capitol.

Florida’s best and brightest young CPAs have immense technical skills but still need experience and exposure to the people and institutions that form the business climate in Florida.

Patrick FIelds, Shareholder, DuVal Fields CPA Group, PA Ryan Hayes, Audit Senior Associate, Dixon Hughes Goodman LLP

TAMPA

Christian Molineros, Director of Accounting MDLIVE, Inc

Trudian Thomas, Financial Analyst, Accounting Policies & Procedures, SBA Communications Corp Kayla Wys, Tax Manager, EY Joanna Zhang, Tax Manager, BDO USA, LLP

To give them this opportunity, the FICPA started the Emerging Leaders Program three years ago as an experience bringing together young CPAs from across the state to engage in unique networking and career development opportunities.

Nicole Cody, Auditor, Spoor Bunch Franz Nancy Fitzgibbons, Financial Reporting Associate, Spoor Bunch Franz

MIAMI

The highlight and final portion of the Program is the Emerging Leaders’ Summit. Hosted in Tallahassee, the Summit includes three days of participants networking with each other, leaders within the CPA profession, and state legislators.

Jamie Koepsel, Attorney, Williams Parker Harrison Dietz & Getzen, P.A.

David Berdugo, Manager, MBAF

“What I love most about this event is that it directly benefits and caters to our young leaders, those who are quite literally the future of Florida business. We know they are already great professionals...and we want to expand their influence sooner,” says Deborah Curry, President/CEO. The Summit includes a leadership workshop, an interactive budgeting session by Florida TaxWatch, and a comprehensive tour of the Capitol building. “It opens up doors. It opens opportunities. [The FICPA] really puts a lot of thought into this program and it’s been super beneficial in boosting my awareness and getting us thinking about how we can be more intentional about our careers,” says past participant, Eboni Moss. The Emerging Leaders Program and Summit occur annually, with applications for the 2020 Program being accepted now through July 15, visit emerging.ficpa.org.

Stefani McElroy, Senior Accountant, Spoor Bunch Franz

Alexander Admire, Senior Manager, MBAF

Ernesto Diaz, Senior Accountant, MBAF Janae Leth, Senior Manager in the Audit Dept., MBAF

Alexia Pappas, Senior Staff Accountant, Spoor Bunch Franz

Octavio Marrero, Tax Manager, APPELROUTH FARAH & CO., P.A.

Shay Sapp, Senior SALT Consultant, CliftonLarsonAllen

Benjamin Nussbaum, Finance Director, Village of Key Biscayne

Alexandria Welsh, Senior Consultant, A-LIGN

Luis Rumbaut, Audit Manager, MBAF

ORLANDO

Brent Larimer, Corporate Accountant, Wyndham Destinations Carly Luczak, Tax Supervisor,Withum Stephanie Nissen, Audit Supervisor WithumSmith+Brown, PC

APPLY NOW! emerging.ficpa.org WINTER 2020 | FLORIDA CPA TODAY

7


NEWS BRIEFS

MEMBER NEWS

MEMBER NEWS

Richard Berkowitz Appointed to Florida Council of 100

Florida League of Cities Elects CPA Isaac Salver President

Richard A. Berkowitz, JD, CPA, founding and executive chairman of Berkowitz Pollack Brant Advisors and Accountants has been named to the Florida Council of 100. The Council is a non-partisan organization of business leaders who work to promote the economic growth of Florida and improve the economic well-being and quality of life of its citizens. Berkowitz spent more than 40 years building Berkowitz Pollack Brant Advisors + CPAs into one of the largest firms in the country. He also serves as chairman of the board of Provenance Wealth Advisors, an estate planning and financial advisory firm with more than $2.6 billion in assets under advisement. A devoted community servant, Berkowitz is vice chair and treasurer of the Miami Foundation and serves on the executive committee of the Broward Workshop. He is a Founder of TechLauderdale. Past leadership positions include president of the FICPA, chairman of the Dolphins Cancer Challenge, the Community Foundation of Broward and Take Stock in Children’s state board. Berkowitz has been honored for his community service by The United Way, University of Miami, the FICPA, Leadership Broward, Leadership Miami and Junior Achievement of Broward County.

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FLORIDA CPA TODAY | WINTER 2020

Isaac Salver, CPA was recently elected president of the Florida League of Cities. Salver was elected by membership and will serve a one-year term for the statewide association representing Florida’s 400+ municipalities.

During his inaugural address, Salver announced his presidential priority for the coming year.  “My initiative can be summed up in one phrase: ‘From Readers to Leaders,’” said Salver. “I’m working with the League to create civic education resources and a children’s book… Our goal is to ultimately create a generation of people who are more aware of the importance of local government and its positive impact on their quality of life.” A Licensed CPA since 1987, Salver has been an active Home Rule advocate and public servant for 20 years. He was first elected to the Bay Harbor Islands Town Council in 1999 and has served the council in several capacities, including two terms as mayor and one as vice mayor. Salver also served on the Board of Directors for the Florida League of Cities, is a past president of the MiamiDade County League of Cities and sits on numerous local boards including The Children’s Trust.

FIRM NEWS

Caler, Donten, Levine, Cohen, Porter & Veil, P.A. (CDL) announces expansion

The certified public accounting firm of Caler, Donten, Levine, Cohen, Porter & Veil, P.A. (CDL) announces the expansion of their office in Martin County. The new office will be located at 759 SW Federal Highway, Suite 301 in the Royal Palm Financial Center in Stuart. CDL’s main office is in downtown West Palm Beach on Flagler Drive.


June 9-12 Disney’s Contemporary Resort in Orlando UNLIMITED LEARNING & NETWORKING The Mega CPE Conference is FICPA’s premier learning and networking experience. Network with over 500 accounting professionals and connect with more than 50 sponsors, vendors, and exhibitors. Choose from 50+ sessions in the following themes: • State Tax • Cannabis/Hemp • Employee Benefits • Hot Topics and more! • Tech Innovations

Four days. Disney magic. An immersive experience. Up to 24 hours of CPE.

IT’S MEGA! #MEGACPE

“MEGA OPTIONS” The Conference also hosts FICPA’s annual Women’s Leadership Summit and the Accounting Scholars Leadership Symposium (separate registration required). Plus, the event’s keynotes and vendor showcase make this the best event for Florida CPAs to learn, connect, and achieve.

FICPA.ORG/MEGA

STATE TAX

A L S O AT

C O N C E N T R AT I O N FEATURING THE BEST OF THE BEST IN STATE TAX

MARSHALL STRANBURG

Deputy Executive Director, Multistate Tax Commission, Washington, D.C.

J O R DA N G O O D M A N

Partner, HMB Legal Counsel, Chicago

The FICPA MEGA Conference 2020 offers five unique concentrations under one MEGA umbrella. Mix and match sessions or focus on one unique topic.

June 11-12 Disney’s Contemporary Resort in Orlando Trending multi-state tax cases that impact your businesses’ tax footprint.

Just one of many magical reasons to attend!

REGISTER TODAY FICPA.ORG/MEGA

WINTER 2020 | FLORIDA CPA TODAY

9


QBI TAKE 2

Qualified Business Income Deduction Carryforward Issues for 2019

By Nate Wadlinger, CPA, JD, LLM (Taxation) and Carol Vance, CPA, JD

S

ince the enactment of Tax Cuts and Jobs Act of 2017 (TCJA), the Section 199A Qualified Business Income (QBI) Deduction has been a very hot topic in the tax world. One thing that has not been stressed since the TCJA is the effect of a QBI loss being carried forward to the next year. This is because Section 199A became effective in 2018 and no losses from before 2018 needed to be considered in tax year 2018. Now that we are going into the 2019 tax filing season with possible 2018 QBI losses, this will be an extremely important issue. This article focuses on the carryforward and netting of loss rules for the QBI deduction. Before getting into the details of the carryforward, let’s review the basic idea of the QBI deduction.1 The QBI deduction was created by the TCJA and is in effect for tax years 2018 through 2025.2 The deduction is made up of two parts; the QBI portion and the qualified Publicly Traded Partnership (PTP) income and qualified Real Estate Investment Trust (REIT) dividend portion. 1  For a detailed discussion of the mechanics and issues under Section 199A, see Big Move for Small Business by Jonathan Ingber in Florida CPA Today, Fall 2018, Vol. 34 No. 4, Pages 8-15. 2  IRC §199(i).

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FLORIDA CPA TODAY | WINTER 2020

THE QBI PORTION

With the QBI deduction, many self-employed taxpayers and business owners can deduct up to 20% of their qualified business income from federal income tax (but not self-employment tax)3 as a deduction from adjusted gross income, whether they itemize or not.4 There are phase-outs based on the business type and also wage and property limits that may come into play.5 THE PTP INCOME/REIT DIVIDEND PORTION

The QBI deduction also includes a 20% deduction of qualified PTP income and qualified REIT dividends the taxpayer receives during the year.6 This amount is added to the QBI portion discussed above to provide the total QBI deduction.7 Finally, this total deduction amount is limited to 20% of taxable income determined under Section 199A.8 Now, let’s consider the carryforward rules and why they are so important.


A TALE OF TWO EXAMPLES

The regulations provide two important examples to explain how loss netting and carryforwards work in terms of the QBI deduction. These examples have been recreated below as example 19 and 2.10 Assume the following facts for Joe, an individual taxpayer, for both examples 1 and 2 that apply in both 2018 and 2019: • there are three separate QBI activities that are not Specified Service Trade or Businesses11, • each QBI activity pays $1 million of W-2 wages, • each QBI activity holds no qualified property12, • the taxpayer does not aggregate the QBI activities under Reg. 1.199A-4, • the taxpayer receives no PTP income or REIT dividends, and • the taxpayer has $3 million of taxable income (determined under Section 199A). 2018

The business activities have the following QBI in 2018: 2018 QBI ACTIVITIES

Activity

Example 1 – QBI Amount

Example 2 – QBI Amount

X

($500,000)

($1,100,000)

Y

$600,000

$600,000

Z

$200,000

$200,000

Total

$300,000

($300,000)

Because Joe’s taxable income is above the threshold amount of $207,500 in 2018, the QBI component of Joe’s section 199A deduction is subject to the W-2 wage or wage/property limitation in both years.13 This limit must be applied on a business-by-business basis since the businesses are not 9  Example 1 is based on Example 9 found in Reg. §1.199A-1(d)(4)(ix) which is the reference for all example 1 calculations and analysis in this article. 10  Example 2 is based on Example 11 found in Reg. §1.199A-1(d)(4)(xi) which is the reference for all example 2 calculations and analysis in this article. 11  Special Service Trade or Business (SSTB) is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading, dealing in certain assets or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners. The principal asset of a trade or business is the reputation or skill of its employees or owners if the trade or business consists of the receipt of income from endorsing products or services, the use of an individual's image, likeness, voice, or other symbols associated with the individual's identity, or appearances at events or on radio, television, or other media formats. The SSTB exception does not apply for taxpayers with taxable income below the threshold amount and is phased in for taxpayers with taxable income above the threshold amount. IRC 199A(d)(2) and Reg. 1.199A-5(b)(2)(xiv). 12  Qualified property is tangible, depreciable property, held by, and available for use in, the business at the close of the tax year used in the production of QBI at any time during the year, and for which the “depreciable period” has not ended before the close of the tax year. IRC 199A(b)(6)). 13  IRC §199(b)(3), (e)(2)(A).

aggregated.14 Because none of the businesses hold qualified property, only the 50% of W-2 wage limitation must be calculated.15 Since each business activity has $1 million of W-2 wages, the limit of each business activity is the lesser of 20% of QBI or $500,000 ($1 million x 50%).16 When looking at the QBI of each activity it’s important to consider the effect of the loss by X. Let’s consider the effect in both Example 1 and 2. EXAMPLE 1 — 2018

The total QBI is positive. There will be no carryforward loss in 2019 because the regulations require the loss by X to be allocated to Y and Z. The regulations require the ($500,000) loss from Business X to be allocated to Y and Z in proportion to the relative amounts of positive QBI from Business Y and Business Z, even without aggregation. Using this formula, the ($500,000) loss from X is allocated as $375,000 loss to Y ($500,000 loss x [$600,000/$800,000]) and $125,000 loss to Z ($500,000 loss x [$200,000/$800,000]). Therefore, the adjusted QBI for Business Y is $225,000 ($600,000 minus the $375,000 loss allocated from X) and Business Z is $75,000 ($200,000 minus the $125,000 loss allocated from X). The adjusted QBI in Business X is $0, because its negative QBI has been fully apportioned to Business X and Business Y. Therefore, we take 20% of each amount QBI: Activity

Adjusted QBI

x 20%

QBI Deduction from Activity (subject to limitation)

X

$0

x 20%

$0

Y

$225,000

x 20%

$45,000

Z

$75,000

x 20%

$15,000

Because these amounts are all lesser than the $500,000 wage limit calculated above for each business activity, these amounts are the deductible QBI portion for each activity.17 We combine the amounts and get $60,000.18 The final limitation is the lesser of this combined $60,000 number or 20% of taxable income determined under Section 199A, which is $600,000 ($3 million taxable income x 20%).19 Therefore, the final Section 199A QBI deduction of Joe in 2018 is $60,000. Note that there is no loss carryforward to 2019. 14  15  16  17  18  19 

Reg. §1.199A-1(d)(4)(ix),(xi). IRC §199(b)(2)(B). IRC §199(b)(2). IRC §199(b)(2). IRC §199(b)(1)(A). IRC §199(a).

WINTER 2020 | FLORIDA CPA TODAY

11


EXAMPLE 2 — 2018

TAKEAWAYS, ADDITIONAL NOTES, AND CONCLUSION

The total QBI is negative. This QBI deduction for the year will be $0 and a ($300,000) QBI loss will be carried forward to 2019 as a separate trade or business.20 No wages from 2018 will carryforward to 2019.21 These rules apply whether or not the businesses are aggregated.22

• If the QBI loss activity or sum of loss activities is less than or equal to the sum of the QBI activity income, then there will be no carryforward in the next year due to the allocation of loss between or among the income activities. • If the QBI loss activity or sum of loss activities is more than the QBI activity income, there will be a carryforward in the next year. This carryforward will be treated as a separate trade or business. Note that this is different than other rules in the tax law like Net Operating Loss (NOL) rules where the NOL would roll forward with respect to the specific trade or business that created the loss.23 • The carryforward of QBI loss does not affect the deductibility of this loss for purposes of other sections of the Code.24 • When there is a QBI activity loss and carryforward loss in a year, add these amounts together and allocate them among the QBI income activities, based on relative positive QBI income. • If Joe in Examples 1 and 2 was able and did aggregate under Reg. 1.199A-4, he would join the three QBI income activities in terms of the total QBI income or loss for the year as well as the wage and property amounts.25 The wage and property limits would be considered on an overall basis. This is the major difference in terms of aggregation vs. non-aggregation.26 • If an individual has an overall loss after adding qualified PTP income/REIT dividends, then the portion of the Section 199A deduction related to the PTP income/ REIT dividends is zero for the tax year and does not affect QBI for the year. Instead, the loss from the PTP income/REIT dividends is carried forward and used to offset PTP income/REIT dividends in the succeeding year or years for Section 199A purposes.27 The complexity of Section 199A will keep CPAs and tax preparers busy assisting business owners in maximizing the benefits of these deductions.

2019

Each of the business activities have QBI as follows in 2019: 2019 QBI ACTIVITIES

Activity

Example 1 – QBI Amount

Example 2 – QBI Amount

X

($240,000)

($240,000)

Y

$400,000

$400,000

Z

$300,000

$300,000

2018 Carryforward QBI Loss

$0

($300,000)

Total

$460,000

$160,000

Example 1 — 2019

Just like in 2018, the total QBI is positive. There will be no carryforward loss in 2020, and X’s loss will be allocated to Y and Z under the same rules applied in example 1 2018. The same limits as mentioned above in 2018 need to be considered, but they will not apply due to W-2 wages and taxable income being very high in proportion to adjusted QBI x 20%. Joe’s QBI deduction for 2019 will be $92,000. Note that there is no loss carryforward to 2020. Example 2 — 2019

The total QBI is positive. There will be no carryforward loss in 2020 because the regulations require the sum of the loss by X and the 2018 carryforward loss, or ($540,000), to be allocated to Y and Z under the same rules applied in example 1- 2018. The same limits as mentioned above in example 1- 2018 need to be considered, but they will not apply due to W-2 wages and taxable income being very high in proportion to adjusted QBI x 20%. Joe’s QBI deduction for 2019 will be $32,000. Note that there is no loss carryforward to 2020.

CAROL A. VANCE ESQ. CPA is a tax and law instructor II at the COB University of South Florida Sarasota/Manatee. She is a practicing FL attorney and FL CPA, representing high net worth entrepreneurs and their businesses. Vance also is Vice Chair of the FICPA Federal Tax Committee. NATHAN WADLINGER ESQ. CPA is a lecturer in tax at Florida State University. He provides tax services at Thomas Howell Ferguson CPAs and is a member of the FICPA Federal Tax Committee.

20  Reg. §1.199A-1(c)(2)(i). 21  Reg. §1.199A-1(d)(2)(iii)(B). 22  Reg §1.199A-1(d)(4)(x),(xii).

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23  24  25  26  27 

IRC §172. Reg. §1.199A-1(d)(4)(ix),(xi). Reg. §1.199A-1(d)(4)(x),(xii). Reg. §1.199A-1(d)(4)(x),(xii). Reg. §1.199A-1(c)(2)(ii).


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529 Education Funding, Transfers and Un-Funding Traps and Tips By Carol Vance CPA, JD and Nathan Wadlinger CPA, JD, LLM (Taxation)

U

nfortunately, the rising costs of education has outpaced all other familial expenses including healthcare and has risen eight times faster than real median wages over the past 30 years.1 Fortunately, we have favorable tax vehicles with Qualified Tuition Programs under Internal Revenue Code Section 529, more commonly referred to as 529 plans and hereinafter referred to as 529 plans, that are considered assets of the donor, as opposed to the student, to assist in funding that education. The primary benefit associated with 529 plans is that the funds invested in these accounts grow tax-deferred until distributions are taken out of the 529 plan tax-free, assuming the funds are used for qualifying education expenses. This article discusses some important issues related to 529 plans, specifically funding and un-funding the plans, transferring assets, and various tips and traps. 1  Forbes 7/14/18, Business Insider 7/20/15, CPI report Bureau of Labor Statistics 12/18

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STATE PREPAID TUITION PROGRAMS

Section 529(b)(1)(A) allows any donor to gift, with after income tax cash, to a prepaid qualified tuition program in any state. These accounts provide tuition credits used to waive part or all of the tuition, and perhaps room and board for the designated student beneficiary. If your beneficiary receives a full scholarship or never attends a state college, these prepaid tuition funds may be withdrawn or used for any eligible educational institution2 or may be transferred to another qualified beneficiary.3 No investment benefit accrues to this post tax fund and therefore, no tax is due upon a distribution.4 529 TRUSTS

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In addition to prepaid state tuition programs’ donors may gift cash to IRC section 529(b)(1)(B) trusts for the benefit of a future student. Five years of gifting may be utilized in advance to fund this trust. A gift tax return must be filed for each of the five years to report the use of the annual gifting. Should the donor die during that five-year gifting period, the unreported gifts will be added to the donor’s gross estate.5 Practically, it is possible for both parents and grandparents or any other interested, generous third party to gift to both types of 529 plans simultaneously. The parents could fully fund the prepaid college program and the grandparents could “superfund” as much as $75,000 each for a total of $150,000 for a newborn grandchild, allowing for maximum investment growth to occur until the child attains college age. 2  As defined in section 481 Higher Education Act of 1965: accredited public, private, non-profit, proprietary college, university, vocational postsecondary school. 3  IRC 529(e)2 Member of family as defined in IRC 152(d) (2)A-G: spouses, children including stepchildren, siblings including step siblings, parents including step-parents, aunts, uncles, and spouses thereof and cousins. 4  IRC 529(c)(6) 5  IRC 529(c)(4)c


Purchasing and maintaining separate receipts for qualified higher education expenses is critical to comply with 529 trust distribution rules. Tuition, fees, books, supplies, equipment such as computers, peripheral equipment, software and internet access, as well as special need services used primarily during any years of enrollment, are eligible for 529 trust distributions. DISTRIBUTIONS — K-12

Beginning in 2018 most states will allow donors to use 529 trust assets up to $10,000 annually per student to cover K-12 public, private, or religious school tuition.6 These distributions may be paid directly to the school or may be reimbursed to the donor during the calendar year of the disbursement. DISTRIBUTIONS — POSTSECONDARY

Purchasing and maintaining separate receipts for qualified higher education expenses is critical to comply with 529 trust distribution rules. Tuition, fees, books, supplies, equipment such as computers, peripheral equipment, software and internet access, as well as special need services used primarily during any years of enrollment, are eligible for 529 trust distributions. The code explicitly excludes sports, games or hobby software, unless it is predominantly educational in nature.7 These expenses may be paid directly from the 529 trust account or reimbursed from the trust to the payor in the calendar year incurred. Half-time to full-time students may also use 529 trust funds to pay or reimburse for room and board, while attending school, as charged by or determined 6  IRC 529(c)7 and IRC 529(e)(3)(A)iii 7  IRC 529(e)3

by the eligible educational institution8 during each calendar year. Distributions will be tax free and avoid the 10% additional penalty tax9 so long as they do not exceed the amount of qualified expenses paid each year.10 Note that updates to SECURE ACT & 529 from H.R. 1994 Title III Section 302 stipulate that IRC § 529 Distributions made after Dec. 31, 2018 may include fees, books, supplies and equipment required for participation of a designated beneficiary in a Secretary of Labor registered and certified apprenticeship program. Up to $10,000 of qualified education loan principal and interest (exclusive of student loan interest deductible under IRC § 221) may be paid for the beneficiary or his or her siblings (defined in IRC § 152(d) (2)(B)) as qualified higher education expenses. The loan repayment distribution permitted is a 529 plan limit, not an annually permissible distribution. ABLE TRANSFERS

529 account transfers may be made to an ABLE11 beneficiary, specifically a beneficiary that became blind or disabled before age 26 and is a member of your family. Contributions are 8  IRC 529(e)(3) B and 472 Higher Education Act of 1965 (20 U.S.C. 108711) 9  IRC 530(d)4(A) 10  IRC 72(e)9 11  Achieving a Better Life Experience Program

OF NOTE:

SECURE ACT section 529 updates SECURE ACT section 529 updates from H.R. 1994 Title I sections 107(a), 113,114 and Title IV section 401 (in respective order) related to individual income tax provisions. IRC section 219(d) is repealed allowing taxpayers over age 70.5 to continue to contribute and deduct payments to an IRA pursuant to all other limitations under IRC 219. Taxpayers may withdrawal up to $5000 from a retirement plan during the first year of a new birth or adoption of a child under the age of 18 or a person who is physically or mentally incapable of self-support without incurring IRC section 72(t) penalties. Special provisions exist to allow this distribution to be repaid to the retirement plan. Required Minimum Distributions (RMD) from Qualified Plans may be delayed until age 72 unless the taxpayer attained age 70.5 during or prior to 2019. The April 1, 2020 deadline will still apply to taxpayers who attained age 70.5 in 2019. Post Death RMD’s from defined contribution plans require that some distributions after the death shall be distributed and taxed to non-eligible designated beneficiaries by the end of the tenth calendar year following the year of the participant’s death. Designated beneficiaries are those named by the participant and may include the surviving spouse, minor children during minority, disabled, chronically ill or a beneficiary not more than 10 years younger than the deceased participant.

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Given the opportunity to enjoy tax free growth on these accounts, CPAs should advise their clients as to how to best utilize the 529 funding, transfers and un-funding to preserve the tax advantages without triggering tax or penalties. sophomore year to use grandparent distributions, thus avoiding FAFSA inclusion for financial aid purposes.

similarly limited to the $15,000 per year gifting limit, accrue earnings tax free and may be used for housing, legal fees and employment training. These 529 ABLE accounts will not restrict the beneficiary’s access to Medicaid, Supplemental Security Income SSI benefits.12 Careful transfers are advised since upon the death of the beneficiary, all excess ABLE funds are available to reimburse Medicaid benefits received, whereas the 529 accounts are not subject to the same state Medicaid repayment policies.13

• The 529 trust investment choices and restrictions permitted on annual investment fund transfers are typically limited by the state administrators and under federal law, but any earnings accrue tax free. All new contributions may use any available investment choice. If taxable distributions are unavoidable and kiddie tax does not apply to the beneficiary, it may be prudent to make that distribution to the beneficiary and therefore include it in the beneficiary’s income at a lower tax rate. The 10% penalty tax may be avoided due to death or disability of the beneficiary, or if the beneficiary attends a military academy, or is reimbursed for tax free scholarship or grant received.14

FAMILIAL TRANSFERS

Rollovers and beneficiary changes are permitted to relieve excess funds, death, disability, scholarship or simply skipping higher learning. Rollovers may be to a different plan sponsor or to a different beneficiary’s account. The new designated beneficiary in any case must be a family member, as broadly defined in IRC 529(e)2.

• If a taxpayer has insufficiently funded the 529 account, (s)he may utilize his or her IRA to pay education expenses for the taxpayer a, spouse, child or grandchild. The earnings on the distribution will be included in income but the 10% penalty tax will not apply, even if the taxpayer has not attained age 59.5. However, before this qualified account is utilized, individuals may want to seek advice from a tax attorney regarding the creditor protection afforded that IRA in their state.

TIPS

The below is a list of tips regarding 529 plans. • Typical Uniform Gift to Minors savings accounts are completed gifts that belong to the student and will impact financial aid eligibility, whereas 529 plans with parent owners will have a less restrictive impact on financial aid. A fouryear degree seeking student may wait until the spring of his or her 12  ABLE Act, section 103 13 IRC529A(f)

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14  IRC 530(d)4(B)

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TRAPS

The below is a list of traps regarding 529 plans. • Distributions from 529 that are not qualified or reimbursed timely for eligible expenses are subject to income tax on the fund earnings, calculated pursuant to IRC 72 and subject to a 10% penalty tax pursuant to IRC 530(d)(4)A unless an exception applies. Refunds of eligible expenses received from the eligible educational institution must be recontributed to the 529 account within 60 days of receipt in order to avoid gross income inclusion and penalties.15 The recontributed amount may not exceed the amount of the refund. • Beneficiary transfers may be subject to gift tax if younger generations are chosen.16 • Invest the 529 trust conservatively; losses are not deductible. • The qualified education expenses paid with 529 funds may not also be used as qualified education expenses for any education tax credits. Given the opportunity to enjoy tax free growth on these accounts, CPAs should advise their clients as to how to best utilize the 529 funding, transfers and un-funding to preserve the tax advantages without triggering tax or penalties. CAROL A. VANCE ESQ. CPA is a tax and law instructor II at the COB University of South Florida Sarasota/Manatee. She is a practicing FL attorney and FL CPA, representing high net worth entrepreneurs and their businesses. Vance also is Vice Chair of the FICPA Federal Tax Committee. NATHAN WADLINGER ESQ. CPA is a lecturer in tax at Florida State University. He provides tax services at Thomas Howell Ferguson CPAs and is a member of the FICPA Federal Tax Committee. 15 529(c)(3)D 16 529(c)(5)B


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Rental Real Estate Enterprise — Safe Harbor Provision for Qualifying as a Trade or Business for Purposes of Section 199A By Paul C. Dunham, CPA & Gary A.H. Laursen, CPA, JD, LL.M (Taxation) INTRODUCTION

The Tax Cuts and Jobs Act (enacted December 22, 2017, Pub. L. 115-97) added Section 199A which provides certain taxpayers with a deduction for up to 20% of their qualified business income. The purpose of this article is not to explore all of the provisions of Section 199A or its underlying regulations, but rather to discuss the safe harbor provisions contained in Rev. Proc. 2019-38 [Trade or Business] (issued September 24, 2019) that can be used to qualify a rental real estate activity as a trade or business. This revenue procedure generally adopts and seeks to clarify Treasury’s safe harbor position for rental real estate activities as first provided in Notice 2019-07 [Section 199A Trade or Business Safe Harbor Rental Real Estate; a notice on a proposed revenue procedure], promulgated in February 2019 with the final regulations. One of the essential components of qualifying for the Section 199A deduction is the fact that the taxpayer must be engaged in a trade or business. The term “trade or business” is not meaningfully defined in the Internal Revenue Code or Regulations. In order to help define such term “trade or business”, taxpayers will often look to case law, particularly the decisions of the United States Supreme Court which held in Commissioner v. Groetzinger1 (480 U.S. 23; 107 S.Ct. 980; 94 L.Ed. 2d 25; 58 AFTR 2d 87-532 (1987)) that an activity arises to the level of a trade or business if it is 1  The definition of an “ordinary and necessary deduction” supplied by Associate Justice Benjamin N. Cardozo may be equally applied to the definition of a trade or business. “Here, indeed, as so often in other branches of the law, the decisive distinctions are those of degree and not of kind. One struggles in vain for any verbal formula that will supply a ready touchstone. The standard set up by the statute is not a rule of law; it is rather a way of life. Life in all its fullness must supply the answer to the riddle. Welch v. Helvering, 290 U.S. 111 (1933)

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engaged in continuously and regularly for the purpose of making a profit. This is a very broad standard and the facts of the case did not involve rental real estate. Further, with regards to the conduct of rental real estate activities, courts have provided a mixed view of what constitutes a trade or business with regards to such rental real estate activities. The purpose of this article is to discuss the safe harbor provisions as provided for in Rev. Proc. 2019-38 in determining whether a rental real estate activity rises to the level of a trade or business for purposes of the Section 199A qualified business income deduction. If a taxpayer does not qualify for the safe harbor provision, then they must peruse the case law and their particular facts and circumstances in order to determine whether their rental real estate activity rises to a level of a trade or business for purposes of the Section 199A deduction. Rev. Proc. 2019-38 is clear that the safe harbor provisions, as provided therein, solely apply for purposes of Section 199A.


GENERAL COMMENTS

RENTAL REAL ESTATE ENTERPRISE

If the safe harbor provisions are met, the rental real estate enterprise (defined later) will be treated as a single trade or business, as defined in Section 199A(d), including the application of the aggregation rules contained in Treas. Reg. Sec. 1.199A-4. Relevant Passthrough Entities (RPEs), as defined in Treas. Reg. Sec. 199A-1(b)(10), may also use the safe harbor.

The definition of a rental real estate enterprise is instrumental in determining whether the safe harbor requirements are met. The revenue procedure provides that solely for purposes of the safe harbor, a rental real estate enterprise is defined as an interest in real property held for the production of rents and may consist of an interest in a single property or interests in multiple properties. The taxpayer or RPE that relies on Rev. Proc. 2019-38 must hold each interest directly or through an entity disregarded as an entity separate from its owner under any provision of the Code.

Failure to satisfy the requirements of the safe harbor does not preclude a taxpayer or the Service from otherwise establishing that an interest in rental real estate is a trade or business for purposes of Section 199A. In order to assist the tax preparer in evaluating the safe harbor provisions of Rev. Proc. 2019-38, a summary of the requirements can be segregated into the following topics: • Excluded Rental Real Estate Arrangements • Rental Real Estate Enterprise • Safe Harbor Hours and Record Keeping Requirements • Qualifying and Nonqualifying Rental Services • Procedural Requirements • Effective Date A discussion of each of the topics follows. EXCLUDED RENTAL REAL ESTATE ARRANGEMENTS

Not all rental real estate activities qualify for the safe harbor provisions under Rev. Proc. 2019-38. Following is a list of certain arrangements that do not qualify for the safe harbor provisions: • Real estate used by the taxpayer (including an owner or beneficiary of an RPE) as a residence under Section 280A(d). • Real estate rented or leased under a triple net lease. For purposes of the revenue procedure, a triple net lease includes a lease agreement that requires the tenant or lessee to pay taxes, fees, and insurance, and to pay for maintenance activities for property in addition to rent and utilities. • Real estate rented to a trade or business conducted by a taxpayer or an RPE which is commonly controlled under Reg. Section 1.199A-4(b)(1)(i). • The entire real estate interest, if any portion of the interest is treated as a Specified Service Trade or Business (SSTB) under Reg. Sec. 1.199A-(5)(c)(2) (which provides special rules where property/services are provided to an SSTB).

In general, taxpayers and RPEs may either treat each interest in similar property held for the production of rents as a separate real estate enterprise or treat interests in all similar properties held for the production of rents as a single real estate enterprise. The production of rents are similar if they are a part of the same rental real estate category. The two types of rental real estate categories are residential and commercial. Thus, commercial rental real estate held for the production of rents may only be part of the same enterprise with other commercial real estate, and residential properties may only be part of the same enterprise with other residential properties. Once a taxpayer or RPE treats interests in similar commercial properties or similar residential properties as a single real estate enterprise, they must continue to treat interests in all similar properties – including newly acquired properties, as a single real estate enterprise when the taxpayer or RPE continues to rely on the safe harbor. A taxpayer or RPE that chooses to treat its interest in each residential or commercial property as a separate real estate enterprise may choose to treat its interests in all similar commercial or all similar residential properties as a single rental real state enterprise in a future year. An interest in mixed-use property may be treated as a single rental real estate enterprise or may be bifurcated into separate residential and commercial interests. Mixed-use property is defined as a single building that combines residential and commercial units. An interest in a mixed-use property, if treated as a single rental real estate enterprise, may not be treated as a part of the same enterprise as other residential, commercial, or mixed-use property.

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SAFE HARBOR HOURS AND RECORD KEEPING REQUIREMENTS

The determination to use the safe harbor provisions are made annually. Each rental real estate enterprise will be treated as a single trade or business if the following requirements are satisfied during the taxable year, with respect to the rental real estate enterprise: • Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise. If a rental real estate enterprise contains more than one property, this requirement may be satisfied if income and expense information statements for each property are maintained and then consolidated; • For rental real estate enterprises that have been in existence for less than four years, 250 or more hours of rental services are performed per year, with respect to the rental real estate enterprise. For rental real estate enterprises that have been in existence for at least four years, in any three of the five consecutive taxable years

that end with the taxable year, 250 or more hours of rental services are performed per year, with respect to the real estate enterprise; and • The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents regarding the following: • All hours of services performed; • A description of all services performed; • Dates on which such services were performed; and • Who performed such services. If services with respect to the rental real estate enterprise are performed by employees or independent contractors, the taxpayer may provide a description of the rental services performed by such employee or independent contractor; the amount of time such employee or independent contractor generally spends performing such services for the enterprise; and time, wage or payment records for such employee or independent contractor. Such records are to be made available for inspection at the request of the IRS.

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QUALIFYING AND NONQUALIFYING RENTAL SERVICES

In order to satisfy the “250 or more hours” requirement noted above, rental services may be performed by owners, including owners of an RPE, or by employees, agents, and/ or independent contractors of the owners. The following is a matrix of the types of rental services that can be used towards the 250-hour requirement (that is, qualifying services) and those that cannot be used towards the 250hour requirement (that is, nonqualifying services). RENTAL SERVICES MATRIX

Qualifying Services

Nonqualifying Services

Advertising to rent or lease the real estate;

Financial or investment management activities such as arranging financing; procuring property; and studying and reviewing financial statements or reports on operations;

Negotiating and executing leases;

Improving property (that is, planning, managing, or constructing long-term capital improvements) under Reg. Sec. 1.263(a)-3(d);

Verifying information contained in prospective tenant applications;

Hours spent traveling to and from the real estate.

Collection of rent; Daily operation, maintenance, and repair of the property, including the purchase of materials and supplies; Management of the real estate; and Supervision of employees and independent contractors.

PROCEDURAL REQUIREMENTS

Once the taxpayer or RPE determines that taxpayer or RPE meet the “hours and recordkeeping” requirements noted above and that taxpayer or RPE desire to use the safe harbor provision, the taxpayer or RPE must attach a statement to a timely filed original return (or amended return for the 2018 taxable year only) for each taxable year in which they are relying on the safe harbor. An individual or RPE with more than one rental real estate enterprise that relies on the safe harbor may submit a single statement but the statement must list the required information separately for each rental real estate enterprise. The statement must include the following information:

With the passing of Section 199A and the potential 20% deduction on qualifying business income, the issue of what constitutes a trade or business for rental real estate activities has once again been brought to the forefront. A description (including the address and rental category) of rental real estate properties that are included in each rental real estate enterprise; • A description (including the address and rental category) of rental real estate properties acquired and disposed of during the taxable year; and • A representation that the requirements of the revenue procedure have been satisfied. EFFECTIVE DATE

The revenue procedure applies to taxable years ending after December 31, 2017. Alternatively, taxpayers and RPEs may rely on the safe harbor set forth in Notice 2019-07 for the 2018 taxable year. The contemporaneous records requirement will not apply to taxable years beginning prior to January 1, 2020. FINAL OBSERVATIONS AND CONCLUSION

With the passing of Section 199A and the potential 20% deduction on qualifying business income, the issue of what constitutes a trade or business for rental real estate activities has once again been brought to the forefront. Treasury has issued Rev. Proc. 2019-38 to bring clarity and to provide a clear road map as to how rental real estate activities can rise to a level of a trade or business for purposes of qualifying for the 20% Section 199A business income deduction. Many taxpayers who fall squarely within the requirements of the safe harbor will find the revenue procedure as good news and useful, and yet others who do not fit squarely within the safe harbor requirements will continue to argue for trade or business treatment using case law and facts and circumstances positions. PAUL C. DUNHAM is a tax managing director for CBIZ MHM, LLC. in Clearwater, Florida. He is a member of the FICPA Committee on Federal Taxation. GARY A.H. LAURSEN is a Florida attorney at law and Florida CPA. He is a tenured associate professor of accounting and law at the Lynn Pippenger School of Accountancy, the Muma College of Business, at the University of South Florida in Tampa. He is a member of the FICPA Committee on Federal Taxation and a Florida university professor member of the Florida Board of Accountancy CPE Committee.

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STAFF REPORT

FICPA Top 3 Legislative Session Issues…So Far. The 2020 Legislative Session began January 14. Following are the FICPA’s Top 3 Legislative issues to date. 1. PUBLIC ACCOUNTANCY BILL

Senate Bill 1140 by Sen. Joe Gruters, CPA House Bill 867 by Rep. Cyndi Stevenson, CPA

• Clarifies ‘licensure by endorsement” requirements • Allows CPE reciprocity for nonresident Florida CPAs • Creates a “retired” status for CPAs 55 years or older • FICPA Action: The FICPA supports the legislation.

2. DEREGULATION OF PROFESSIONS AND OCCUPATIONS

Senate Bill 474 by Sen. Ben Albritton

• Known as the “Occupational Freedom and Opportunity Act”, the bill seeks to “Deregulate” several of the professions regulated by the Department of Business and Professional Regulation. • Specific to CPAs, the bill removes CPE requirements for individuals seeking licensure by endorsement. • The impact to the profession is minimal and doesn’t impact mobility. This bill is identical to last

year’s bill filed by the same Senator. We expect the House bill to include similar provisions. 3. LEGISLATIVE REVIEW OF OCCUPATIONAL REGULATIONS

House Bill 707 by Rep. Paul Renner

• Creates an “Occupational Regulation Sunset Act” and outlines a process in which the legislature will review the “costs and benefits” of each occupational regulatory program. Prior to the sunset date, the legislature will review each occupation to determine “whether to allow the program to

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FLORIDA CPA TODAY | WINTER 2020


expire, renew the program without modifications, renew the program with modifications, or provide for other appropriate actions”. • Specific to CPAs, the sunset date proposed in the bill is set for July 1, 2023. • FICPA Action: The FICPA is learning more about the review process and meeting with the bill sponsor. See IMPACT Report (impactreport.ficpa.org) to receive updates on this issue.

At Lighthouse Life, we believe that seniors should benefit from what is rightfully theirs—their life insurance policies. Life settlements help the financial lives of qualified seniors by providing them with significantly greater resources in retirement than if they lapse or surrender the policy.

FICPA BOARD APPROVES 2020 STATE LEGISLATIVE POLICIES

Each year, the FICPA Committee on State Legislative Policy sets the Institute’s legislative agenda for the upcoming year and crafts its “Legislative and Regulatory Policies”. The FICPA Council approved the 2020 Legislative Policies Oct. 31, 2019. Significant amendments were made to this year’s policies and are listed below. To read the 2020 Legislative Policies in its entirety, visit www.ficpa.org/SLP. 1. S upport CPE reciprocity for nonresident Florida CPAs 2. S upport the creation of “Retired CPA” status for “inactive” Florida licensees at least 55 years of age, as described in the 8th Version of the Uniform Accountancy Act and pursuant to the safeguards in 473.301 F.S. 3. S upport additional specificity for required ethics courses to include a majority of Florida Laws and Rules content

To read the 2020 Legislative Policies in its entirety, visit www.ficpa.org/SLP.

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WELLS FARGO ADVISORS CHRISTOPER M. THOMPSON CFP ® CRPC ® First Vice President-Investment Officer Fundamental Choice Portfolio Manager

In order to support CPA firms, Wells Fargo Advisors would like to introduce our STRATEGIC PARTNERSHIP PROGRAM designed to broaden and strengthen the existing relationships you have with your clients. Your client may potentially benefit from the service of two trusted professionals while gaining access to the extensive services and resources of a full-service investment firm at no extra cost. When clients that you recommend for our professional money management services enroll in one or more of Wells Fargo Advisors investment advisory products, our Strategic Partnership offers your firm:   

A non-exclusive program – no commitment or obligation Compensation for client relationships Income growth potential

We welcome the opportunity to speak with you in depth about the program and the benefits it can provide to both your firm and your clients. Please contact Chris Thompson, CFP ®, CRPC ® if you have any questions about our program: 904351-7688 or toll free 1-800-342-0689 or email Christopher.thompson@wellsfargoadvisors.com. Advisory programs are not designed for excessively traded or inactive accounts and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services, including fees and expenses. The minimum account size for these programs is between $25,000 and $2 million. Investment and Insurance Products: NOT FDIC Insured

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WINTER 2020 | FLORIDA CPA TODAY

27


STAFF REPORT

Front and Center: Firms stand with the Florida CPA/PAC For 115 years, the FICPA has represented the CPA profession in Florida. Advocacy and engagement in the political process are cornerstones of the organization throughout its history. The Florida CPA/PAC was created to strengthen these efforts and to ensure that individuals best suited to representing policy issues important to the CPA profession are elected to state office. Through its work each election year, the Florida CPA/PAC increases awareness and builds support for the CPA profession among the state’s elected leaders. The 2020 elections will be no different from any other. Candidates running for office, regardless of party affiliation, will undergo an extensive vetting process to gain the support of the PAC. Engaging in this process ensures that the profession continues to have high visibility and strong representation within the political landscape. Advancing the work of the Florida CPA/PAC and continuing its success on behalf of the profession requires dedicated individuals and firms making an investment each year. This year, the 15 firms participating in the annual “Top 250” fundraising campaign are recognized for their steadfast commitment to the efforts of the Florida CPA/ PAC. Their support bolsters the many contributions from individuals made during the year and cements the overall goal of keeping the profession at the forefront of the state’s leaders. The CPA profession continues to thrive in Florida because of the commitment shown by the members of this year’s “Top 250” campaign. Thank you again to all the individuals and firms that are supporting the Florida CPA/PAC’s efforts.

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FLORIDA CPA TODAY | WINTER 2020

Top 250 CPA/PAC Contributors PLATINUM CLUB ($5,000 OR MORE CONTRIBUTION) BLAIN L. HECKAMAN

Kaufman, Rossin & Co. Miami

ANTONIO L. ARGIZ

MBAF – Morrison, Brown, Argiz & Farra, LLC Miami

GOLD CLUB ($2,000 OR MORE CONTRIBUTION) JEFFREY E. BARBACCI, CPA

Thomas Howell Ferguson P.A. CPAs Tallahassee

JEFFREY M. TUSCAN

Tuscan & Company, PA Fort Myers


“I’ve always strongly believed in the Florida CPA/PAC and the work it does on behalf of the profession. Throughout my career, I’ve seen how being engaged in the political process makes a difference professionally and personally. We’ve been fortunate to have a strong business environment in the state, but we cannot take this for granted. The tide can change overnight and we must be vigilant in our efforts to maintain the CPA as the trusted advisor. The Florida CPA/PAC is key in keeping our message in front of our elected leaders.” —Tony Argiz, managing partner MBAF

SILVER CLUB ($1,000 OR MORE CONTRIBUTION) PERCY J. LEGENDRE

Bashor & Legendre, LLP Tampa

MARK BRECHBILL

Mark Brechbill, PLLC Stuart

LEE BELL

Saltmarsh, Cleaveland & Gund, CPAs Tampa & Pensacola

DEREK BLAKESLEE

Sines Blakeslee Madyda, CPAs, PA Winter Garden

W.G. SPOOR II

Spoor Bunch Franz St. Petersburg

BRONZE CLUB ($500 OR MORE CONTRIBUTION) ABBY DUPREE

Carroll and Company, CPAs Tallahassee

KRISTIN BIVONA

GellerRagans Orlando

DAVID J. THOMAS

Holyfield & Thomas, LLC West Palm Beach

KIMBERLY JUDA

Juda, Eskew & Associates, PA Plantation

CARLOS PEREZ-ABREU

PAAST, P.L. Coral Gables

GEORGE M. STONE

Stone, Parker & Company, CPA, PA Port Richey

JOIN THE PAC ficpa.org/paccontribute Please note: contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/ PAC is supported solely by the voluntary contributions of members of the FICPA and others.

WINTER 2020 | FLORIDA CPA TODAY

29


STAFF REPORT

2019 CPA/PAC Individual Contributors The Florida CPA/PAC recognizes and thanks these FICPA members for their individual contributions. Their support helps make it possible for the PAC to engage in elections for pro-CPA candidates running for the Florida Legislature each election year. Most importantly, due to their commitment to the profession, these supporters have ensured the PAC will have the resources needed to help re-elect the three CPAs currently serving in the legislature. Again, we thank these members for their investment in the PAC’s success. TRENDSETTER/ PACESETTER Katherine M. Maynard Jaret P. Rice William H. Hurst Jr Kenneth M. Daniels John L. Brantley Margaret G. Edmiston John Sundeman James A. Halleran Patrick J. Kelly Keith L. Jones Christopher M. Todd Jennifer B. Gunter Jeffrey E. Barbacci Stephen M. Kalifeh II Julian D. Dozier Kelby H. Tardi Abigail F. Dupree Charles G. McDuffie Delia F. Finnerty Deborah L. Curry James F. Thielen Glenn A. Bedonie Michael G. Dupree Sheldon F. Bernau Keith A. Jowers II Alan M. West George E. Shierling Katherine A. DeFilippo John K. Freeman Randall Wilson James H. Wade Jr Linda G. Parks Thomas E. Riley George H. Billings Jr Kristin A. Bivona Richard L. Pilhorn Lena G. Combs Wendy Y. Terry Michael E. Batts Tarsha R. Jacobs Thomas F. Reilly William J. Hyatt Joe Lopez Maria A. Thomas Anthony L. Gregory Anthony E. Marcus Todd M. Russell Key G. O'Keefe Yvonne M. Clayborne Jorge H. Jordan Raul O. Serrano Jr Wilbert Santos Johanna M. Eddy

30

Yvette N. Aubin Amada Lopez-Cantera Catherine H. Lorie David P. Rosenbaum Glenn H. Gopman Domingo A. Alvarez Ronald Thompkins Joseph A. Epstein Charles F. Brandon Joseph C. Moffa Charles Krblich Gary J. Margolis Barbara J. Jagusztyn Evelyn F. Parkes David J. Thomas III Reynolds J. Cochrane Michael S. Brault Peter V. DeSanctis Henri J. DesPlaines William H. Durkin Andrew J. Mason Paulette M. Holder Daniel D. Raulerson Douglas Perreault Jeffrey M. Aguiar Scott G. Price Robert V. Grieb Geoffrey K. Mosher Jr Jose E. Valiente Vi H. Nguyen Anthony M. Bragano W. G. Spoor II Michael Halfast Jose E. Del Rio Lindsey C. Hardee William G. Tapp David R. Ramos Casey A. Fletcher Sylvia L. Fletcher Alisa L. Sherman Steven R. Wright Patricia A. More Lawrence J. Kendzior Shawn M. Williams James A. Chouinard Michael R. Pender Jr Tommye E. Barie David J. Hochsprung Sheryll A. Goedert Michael J. Kierzynski David A. Dorsey Paul T. Horgan G. Michael Stone Laura J. Violante Marianne E. Grabowski Kimberly V. Dyson

Melvin L. Sams IV Harry C. Harrell Jacob C. Shumacker III Nancy L. Juron Derek Blakeslee Gerald A. DiBartolomeo Jr Douglas M. Sonier David A. Ralicki Kevin J. Herzberg Sarah K. Funk

COMMITTEE 100 George G. Fox Leon W. Faris Kathlyn C. Jordan Terry L. Seaton R. E. Tonkinson Linda D. Myers Jason K. Lafser Richard S. Ingram Jr Nicole B. Andrews Mark J. Schou Matthew E. Edelman Michael W. Lombardo Joseph K. Bing Michelle L. Jackson Robert O. Johnson Lee Draper III John I. Bishop Jr RH Hunnings Cynthia W. Stevenson Steven R. Richards Paul N. Brown Brian W. Manuel Ronald E. Jackson Tara J. Stone Nancy L. Watson Timothy D. Kane Irvin N. Gleim Alan G. Nast William M. Galloway Donna E. Collins Laura F. Rainey Cheri Swain Randall T. Coleman Joel A. Knopp Thomas V. Durkee Kathryn L. Ennis Erik A. Halluska David S. Holland Marlyn D. Felsing Mark D. Schafer Edward A. Neal Ryan A. Myers Ann G. Blakeslee

FLORIDA CPA TODAY | WINTER 2020

James K. Duerr Edwin Rivera Hilary A. Eisbrenner Daniel Henn Adel J. Gonzalez Nancy B. Swift Linda K. Johnson Kenneth M. Rios Richard L. Shapiro Peter Howley Daniel H. Hurtado Jonathan S. Ingber Michael D. Futterman Howard B. Lucas Phillip S. Sroka Erick S. Magno Michael H. Novak George F. Vina Ronit Canet Steven B. Kreinik Felipe R. Ruiz Ignacio J. Abella Caridad Vasallo Rosie N. Mendoza William T. Robinson Anthony J. Palacio Bruce M. Berger Steven E. Fuller Terrell W. Witcher Keith M. Bennett Zvi Rafilovich Joe Berkovits Mary F. Cheaney Daniel B. Grossman Yolanda R. Nader Alan M. Wagner Daniela C. Thomason Eric W. Filkins Tracey J. Kinker Gebert Joseph A. Paul Alvin L. Brown Shawne W. Blair Ira M. Herschbein David M. Rosenblum David H. Daniels Jillian C. McSpadden Mark R. Mutchnick Briggs P. Stahl Mike U. Akwue Richard W. Reeder Morgan G. Watson Charles L. Hutchinson Steven M. Platau Denise L. Bouchard Anne Marie Hicks Alan C. Fisk

John J. McKnight Jr Michele M. Hoover Reina L. Schlager Cynthia S. D'Artagnan Charles A. Treviso Robert H. Gibson Susan J. Keeton Amie N. Fox Timothy Gruters Kristen M. Crawford Kenneth D. Stoff James W. Warmus Stephen E. Okiye

SUSTAINING Karla J. Bodden Fernando G. Castineira David J. Goodman Steven K. Borden Tammy R. Velasquez R. Kevin Cross Stewart H. Carlin Lawrence H. Whitfield Donna L. Mcginnis Charles W. Smithers Jr Rose P. Shelley John S. Olivari Johnny P. Svajko Mary Ann Wilson Neal J. Von Stein Timothy P. Raines Brian A. Hall Tyson P. Walters Bonnie H. Smith Steven J. Johnson Jennifer L. Bucior Tony C. Starace David F. Strange Thomas Cox Jr Sharon C. Richardson Bill Bogan Jr Roosevelt Brooks Barbara S. Withers William E. Bane Regina W. Baniakas Sean M. Gerold Richard A. Romans David C. Crowder Ashley K. Vines Yohana M. Tuguta Mark E. McDonough Sally A. Scala Raskin Shah Khushdyall B. Loaknath Brent A. Larimer Harry E. Vadney

Kenneth O. Dudley Jay N. Edinger Monica S. Wellmaker Kathryn F. Barton Debra K. Lockwood David G. Fung-On Michelle D. McCann Gary M. Cooper Nestor L. Guillen Lydia C. Desnoyers Carlos M. de La Osa Ana M. Toca Bernardo C. Tacoronte Sherrill W. Hudson Kenneth R. Henry Jacob E. Nae Jorge A. Jimenez Clifford B. Ain Jason H. Klein David J. Fasano Barry J. Misthal Kenneth B. Sandler Mark J. Zand Kimberly A. Juda Ana I. Blanchard Michael F. Coiro Donna M. Sotillo Robert S. Brown Seth M. Lipson Nanette N. Winzell Joseph A. Genovese Birgit Hugel David A. Hexter Jorge A. Suarez Jr Gary G. Smith Roberta N. Young Carolyn C. Sweeney Elizabeth Garrido Sharon L. Roma Laura A. Stevenson Edward M. Kaplan Deborah P. Mason Kenneth T. Marsh Earl D. McMillan Sr Charles M. Sincell III Meagan C. Mane Alyssa L. Belcher Peter J. Steffens Osama S. Kayali Jon Aviles Deborah P. Weber Troy Kimbrough Phillip W. Price Jr John C. Guarino Robert M. Melby Keith E. Newman


STAFF REPORT

Lisa L. Smithson Elaine M. Wahl James M. Luffman Martha E. Cronk Stewart W. Hurst G Tierso Nunez II Thomas E. Jennings Robert R. Wott Alina Mizerniuc Juliana M. Kierstein Aubrey Bourgeois Carl I. Nickel Peter S. Burgess Alison N. Wester Deric V. Cablish Robert J. Ritzenthaler Andrew P. Tyack Laura A. Plum Joseph R. Gruters Kristine W. Taylor Lisa H. Seiffer Angela Wittholt Justin D. Callow Charles D. Riggs III William C. Ross Cassandra A. Searle Sirkka S. Firley William C. Fowler Jr. Edward B. Rosenbaum Anna L. Halaburda Elliot D. Stein

ACTIVE Arlene S. Thronebury Mark I. Rutkowski Elisa M. Williams Alberto Salva-Javier Jeffrey M. Berenson William S. Schwarz Brad M. Kreinces Charles A. Lota Dennis W. Bartlett Ralph J. Anderson Jr Alan Dworkin Adam A. Urban Merrill I. Rosen Raymond Giovanniello James T. Keefe Lorraine P. Wolch Raymond F. Schultheis Hugh Whyte Lisa J. Cosentino Frank C. Lordi Sr Mitchell J. Keiser Lawrence M. Cohen Mary S. Rodriguez Stephen K. Foreman Audrey S. Bullard William B. Kortum Susan C. Knapp Jerry J. Murray Donald J. Kitaif Sheryl S. Kitaif Angela M. Poole Charles D. Lewis Shermon C. Burgess Keith E. Johnson Gwendolyn M. Ogden

Dennis C. Harms Julius F. Harms Adam M. Robinson Lawrence L. Jaffe Jerry R. Kaufman David L. Dougherty Jessica A. Coates Rex D. Ware Clarence L. Raker Kimberly A. Fox William R. Perry Virginia L. Yeagle Patricia K. Hagan Kathryn M. Leavins Jerome P. McCauley Dr Valrie Chambers Russell L. Kelton Stephen R. Nelson Christopher L. Miller Ronald J. Person Edward K. Cranford Michael F. Hester Jennifer N. Smith Harold F. Keene David Olivencia YuTien Chi-Wagner Shawn P. Duerr Leslie A. McElhinney Barbara Pierce Betty G. Gonzalez Donna L. Britton Barth Satuloff Casper J. Jacoby IV Alberto F. Arredondo Eduardo A. Guernica Stanford A. Paul Steven R. Rich Gloria M. Arcia Elizabeth C. Margolis Nayarit Briceno John B. Holder Marlene C. Morato Tamra R. Downen Joseph A. Gitto Jr Michael R. Adair Corinne S. Slemenda Richard C. Kendall Jr Daryl L. Hall Albert Abramowitz Carlos Rivas Fanego Marco Montilla John W. Cooney Richard Aguilar Arturo Paoly Valentin Lopez Nora E. Pernas Thomas Mingo III Christopher C. Ortega Mario E. Toca Myrna M. Gutshall Andrew S. Robertson Bayardo N. Aguilar Jr Milton G. Fisher Richard J. Browdy Norma Fernandez-Lucena Luis E. Davila R A Miller

Norman Levine Raymond F. Marin Robert M. Wolf Joel A. Schwartz Yovanny D. Hernandez Tellez Sr Kenneth M. Haller Isaiah M. McCoy James W. Bryan Jonathan J. Davis Shiva L. Tookhan Steven Silverman Jorge J. Lopez Bradley A. Hacker Min Azahares Lawrence S. Burke Pamela B. Hathaway Stephen M. Schwartz William K. Caler Jr Alex J. Alijewicz Robin M. De Santi Jason M. Altman Patricia M. McDougle John G. Gould D Douglas Hill Howard Zolin Robert S. Cheskes Marc M. Tolman Jennifer J. Whitelock Daniel Z. Averbook Jose L. Alookaran Ray-lyn Barnett Constance C. Wiberg Leslie A. Inman Michael E. Wheeler John W. Burke James H. Dixon Jr Mark Sherwin Solon F. O'Neal Jr Matthew Parker Cheryl A. Salgado Allen C. Wohlwend John W. Schilthuis Janet S. Baldwin Harold P. Sullivan Claudia C. Copeland Marianne Micco Gail Markham

Joni L. Norton Karen L. Mosteller Tamara L. Cindrich Victoria A. Loyola Kelsey A. Griffin Jeffrey S. Brown Robert Wilkinson Kelly R. Dee Lucinda H. Stebbins Joseph J. Buongiorno Sr Michael E. Creekmur Joseph A. Blitzko Richard D. Smith Karen L. Wiltsie Claudia K. George Stephen B. Fox George I. Augustin Cara L. Priess Terri S. Kane William L. Trice Mario A. Iezzoni Christopher T. Weaver Lisa A. Swanson John E. Hanson Herbert J. Greenlee Jr Thomas Karim Michael S. Terroni Leon A. Elwell Patrick W. Smith II Keith B. Pitts Joel I. Levy William R. Burke Howard R. Simon Thomas B. Wagers Sr. Dan D. Warren Alan M. Spertell

OTHER Latifah R. Poole Kathleen M. Witkowski Kenneth H. Slack Rob Johnson Jenna Gray Carol E. Eklund Carol E. Dozier Jill L. Carlton James B. Delaney Renee S. Sams Andrew S. Hetzel

Scharrad K. Cartwright Colette C. Sellers Brenda R. Wegrzyn Maryann K. Siler Emem Ikpeinyang Paul W. Craft Johnny F. Session Michael L. Johnson Sr. Leona Mazur Bonnie B. Holloway Carrie A. Bailey Julia N. Noble Thiago Azevedo Robert F. Thomson II W. Neal Carris Aaron B. Stitzel Donna M. Heddlesten Willie Howard Jr Raul Alvarez David A. Kofsky Misty L. Weinger Ana Kairis Dominique Rizo Svetlana V. Hayes Diane M. Minch Thomas R. McDonald Alfredo A. Jacomino Eduard A. Baltar Rachel A. Storch Imre Borsanyi Michael L. Brown Eric B. Glinsky Francisco J. Villegas Jennifer Niebla Stephanie F. Bestulich Albert Corrada Alberto F. Guzman Jose A. Menendez Maria Del Calvo-Hevia Jack M. Dresner Lynda T. Rimart Yanick J. Michel Clara E. Arango Thomas F. Jennings Jr J. Scott Vermaas Michelene Brown, Virginia Beverly S. Allison

Alexander D. Long Tricia A. Lee Golomb Christina L. Worley Diana L. Ortega Reyes Luisa K. Bosso Yves S. Corioland Herman E. Clark Michael J. DeMarie Ioanna Kalymialaris Chelise Z. Davis Milton H. Barbarosh Alejandra Gutierrez Nicole A. Barr Gloria M. Moran Trudian S. Thomas Cyprianna Jackson Robert S. Prann Rodriguez Edward S. Williams Rodelia O'Shaughnessy Edgar Sandoval Cedrick L. West Sophia C. West Catherine C. Ahrend Sam A. Lazzara Michael E. Wells George P. Thornton Venecia A. Webster Andrew R. Webber Judith D. Smith Vincent R. Coello Daniel W. Reponen Trey M. Bruce John F. Connor Lusy Garcia James B. Gay Jennifer L. Ryan Eugene J. Caruso William R. Demers Alex Antoine Anthony J. Molinari William C. Moorman Richard C. Fopiano Jon D. Ryan Meagan G. Camp Rebecca S. Doll Glen A. Milkus

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WINTER 2020 | FLORIDA CPA TODAY

31


STAFF REPORT

Scholarship Foundation Quick Takes Upcoming Scholarship Foundation Events Near You Join us for fun-fundraising events coming to your area soon! All proceeds benefit scholarships for Florida accounting students. 31ST ANNUAL 1040K RUN

March 29 Las Olas Centre, Downtown Ft. Lauderdale

SCHOLARSHIP APPLICATIONS OPEN NOW

Applications for 2020 scholarships are being accepted through March 4 for awards of up to $5,000. Applying online is quick and easy. Please help us spread the word. For eligibility and application details, visit scholarships.ficpa.org and remember, you can’t get a scholarship if you don’t apply! P.S. Students meeting eligibility requirements may also apply for a $3,000 Lewis Davis Scholarship award. Deadline for these awards is February 11. Check website for details.

THANK YOU YEAR-END DONORS!

Thanks to our many November and December donors for helping us reach our year-end goal of an additional $10,000! Through your generosity, all proceeds raised will be added to our 2020 scholarship funding. On behalf of future CPAs and deserving Florida accounting students, we thank you! INAUGURAL ANNUAL REPORT PUBLISHED

Learn more about the FICPA Scholarship Foundation and FICPA programs for future CPAs by viewing our first Annual Report, located in this magazine. We are proud to share the impact that our generous donors helped us accomplish during the 2018-19 fiscal year. Check out our report on page 41. JAN DOBSON, CAE, APR, SF sr. director

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FLORIDA CPA TODAY | WINTER 2020

DAY AT THE

[HORSE] RACES

NEW IN 2020! DAY AT THE [HORSE] RACES

May 1 Tampa Bay Downs, Tampa 15TH ANNUAL SUNCOAST SCRAMBLE

June 4 East Lake Woodlands Country Club, Oldsmar 6TH ANNUAL LEARN@SEA CRUISE TO THE CARIBBEAN WITH THE FICPA SAILFISH CHAPTER

May 1-4 Port Canaveral

GOLFING FORE EDUCATION

May 8 Eagle Creek Golf Club, Orlando FOR MORE INFORMATION VISIT

WWW.FICPA.ORG/SF-EVENTS


LEARNING MADE LOCAL

May 28-29, 2020 NEW LOCATION!

Florida State Conference Center, Tallahassee + Live Stream CPE: Up to 17

The Florida State University Accounting Conference brings together CPAs from around the region to learn and network. Choose to participate in-person or via an online live stream while exploring key issues and industry updates. Learning is tailored to give local CPAs and those connected to the FSU community the information they need to stay ahead of the game. FEATURED TOPICS: Comprehensive review of GASB & insurance-related topics • Cannabis session Legislative & economic updates • Leadership & diversity in the workplace

FICPA.ORG/FSUAC


DOR UPDATE

The DOR is Prepared to Serve You By Valerie Wickboldt, director of communications, Florida Department of Revenue

The Department also has 21 local service centers conveniently located around the state. The local service centers primarily handle collection and enforcement inquiries, but they can also address general tax law questions. When a taxpayer or their representative has a question about an account, a tax rate, or how the tax law applies to a transaction, the Department of Revenue (Department) stands ready to assist. The Taxpayer Assistance Contact (TAC) Center is the Department’s call center for general tax inquiries. It is a great place to start when a question arises. The TAC center’s team of tax professionals can address a wide range of taxpayer questions. For example, the center can answer questions about a bill or notice that the taxpayer receives and assist the taxpayer with using the Department’s eServices portal for filing tax returns and paying taxes. The TAC center can also provide taxpayers with information about account balances, interest rates, reemployment tax rates, and how to obtain copies of forms, previously filed tax returns, and consumer certificates of exemption.

34

FLORIDA CPA TODAY | WINTER 2020

The Department also has 21 local service centers conveniently located around the state. The local service centers primarily handle collection and enforcement inquiries, but they can also address general tax law questions. Whether presented by phone or in person, a service center tax professional can research tax law questions and provide a rule, statute, or other published document that addresses the inquiry. For questions received by the TAC center or local service center involving complicated or novel tax questions, or relating to a particular transaction for which the taxpayer wishes to receive a written response, the taxpayer’s inquiry may be referred to the Department’s Technical Assistance and Dispute Resolution (TADR) office. A complicated or novel question is one involving a new industry or business model; a detailed fact pattern; or is one that needs legal interpretation.


The TADR office makes determinations as to the taxability of transactions based on current state tax law and its relation to specific facts. These determinations may result from a disputed agency action, an inquiry by a taxpayer or their representative, or an inquiry by a Department employee. No matter the avenue a taxpayer uses to contact the Department, the inquiry will be routed to a tax professional who is best suited to answer the question. For contact information for the TAC center, a local service center, or the TADR office, please visit the Department’s Contact Us webpage at floridarevenue.com/contact. The Department also encourages taxpayers and their representatives to sign up to receive real-time electronic updates such as Tax Information Publications and due date reminders by visiting floridarevenue.com/ dor/subscribe.

For contact information for the TAC center, a local service center, or the TADR office, please visit the Department’s Contact Us webpage at floridarevenue.com/contact.

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WINTER 2020 | FLORIDA CPA TODAY

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CPAS IN THE SPOTLIGHT

CLERMONT

PENSACOLA

ST. AUGUSTINE

CITY OF CLERMONT

ANGLIN REICHMANN & ARMSTRONG

Joe Van Zile, the City of Clermont’s finance director retired in December and was recognized for his service by the city’s manager, Joe Van Zile mayor and council during a recent council meeting. He earned the Certificate of Achievement for Financial Reporting for 31 consecutive years and managed the city’s $148.3 million annual budget.

Anglin Reichmann Armstrong participated in a Serve Day at its Pensacola offices, visiting the Pensacola Humane Society to create dog treats, give TLC to shelter cats and make puppy chew toys.

SANFORD

HBK CPAS & CONSULTANTS

Keith A. Veres, CPA, CGMA, CEPA has earned the Exit Planning Institute’s Certified Exit Planning Advisor (CEPA) Keith A. Veres designation. He is principal in the Fort Myers office of HBK and serves as the firm’s director of corporate finance.

Congratulations to the Winter 2020 CPAs in the Spotlight! For more news about FICPA members, visit CPAs in the Spotlight at ficpa.org/cpaspotlight. Please email submissions for CPAs in the Spotlight to communications@ficpa.org.

36

FLORIDA CPA TODAY | WINTER 2020

Joe Mazur

Abare, Kresge and Associates CPAs has promoted Matt Roche to director of accounting services, and has hired Alex Rodgers, formerly an intern, as a full time tax staff accountant.

STUART MARI HUFF C.P.A., P.A.

SEMINOLE STATE COLLEGE OF FLORIDA

FORT MYERS

ABARE, KRESGE AND ASSOCIATES CPAs

Seminole State College of Florida welcomes Joe Mazur as its vice president for business operations/chief financial officer.

Mari Huff C.P.A., P.A. has hired Cory Music as a staff accountant and Michael J. Stevens, CPA as a Tax Manager. Mari Huff C.P.A., P.A. would like to congratulate Daniel Ranchurejee on receiving his CFE – Certified Fraud Examiner.

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Mike Yuhas

Lindsey Gregory

A Legacy Gift will Inspire Hope and Promote Lifelong Health by Providing the Best Care for Every Child.

Thomas Howell Ferguson P.A. CPAs congratulates Mike Yuhas and Lindsey Gregory for receiving their Certified Public Accountant (CPA) license. Working in Tallahassee as a staff accountant in the tax services department, Mike received his Master of Acctg in Taxation from FSU. Lindsey Gregory received her Master of Acctg and Taxation from FSU and works in Tampa as a staff accountant in the assurance services department.

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Zachary “Lucky”, 11, was diagnosed with Kyphosoliosis requiring

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NicklausCHF-366 Florida CPA Today Jan 2019-1.indd 1

11/19/18 9:58 AM

FLORIDA JUDICIAL QUALIFICATIONS COMMISSION

Harry Duncanson has been reappointed to the Florida Judicial Qualifications Commission, subject to Senate confirmation. Harry has served on the commission since January 2011; his new term expires December, 2024.

OUT OF STATE WOUCH MALONEY

Wouch Maloney has hired Lisa J. Cosentino, CPA, CFE, CIA, FLMI as principal of business advisory services. In this role, Cosentino Lisa J. will enhance the firm’s Cosentino capabilities in advising companies in the insurance, construction, manufacturing, wholesale and services industries. She is a CPA licensed in Pennsylvania and Florida. WINTER 2020 | FLORIDA CPA TODAY

37


MARKETPLACE

Classified Ads For information on rates and classified ad policies, visit ficpa.org/marketplace. PRACTICE FOR SALE

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FLORIDA CPA TODAY | WINTER 2020

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2018-19 Annual Report


MESSAGE FROM FOUNDATION BOARD PRESIDENT

Impact. That’s been the aim of the FICPA Scholarship Foundation since its inception in 1959, and I’m proud of the work that we’ve done to achieve that goal. Serving as President of the Scholarship Foundation Board allows me to see the full scope of the impact our organization has on the Florida accounting community. From our longstanding events like the 1040K Run and Ocean Reef Retreat, to new initiatives like the Tampa Bay Scholarship Night, the Scholarship Foundation continues finding ways to bring hope to the next generation of CPAs in Florida. Thank you to all our Trustees and donors who make our work possible. I appreciate each of you, and look forward to making an impact on students and the Florida accounting community together, for years to come. Eugene W. “Bill” Moore President FICPA Scholarship Foundation Board of Trustees

MESSAGE FROM THE PRESIDENT/CEO OF FICPA

Reflecting on another successful year, I am proud of the FICPA Scholarship Foundation’s progress in supporting the next generation of accounting leaders. Thanks to your support, the Foundation made a lasting impact on many of Florida’s accounting students this year. The Foundation awarded more than $165,000 in scholarships this year – supporting students to ensure the strong future of our profession. It is my hope that this year’s report will inspire you: either to make your first contribution (or your next); to join us at a Foundation event; or simply to spread the word about the work we are doing. Your support has an immediate, tangible impact on students who will one day lead our profession to new heights. It is my privilege and honor to be involved with the Foundation’s work to elevate and enrich our next generation, and I hope you will consider being a part of it, too. Deborah L. Curry, CPA, CGMA Secretary-Treasurer, FICPA Scholarship Foundation President/CEO, FICPA

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2018-2019 FICPA Scholarship Foundation Annual Report


REPORT Highlights Mission Statement

Extraordinary Donors

Financial Positions

How to Get Involved

Participating Schools

Event Highlights

Strategic Plan

By the Numbers

Scholarship Recipient Stories

Endowment Salute

PAGE 4

PAGE 6

PAGE 8

PAGE 9

PAGE 12

PAGE 14

PAGE 18

PAGE 20

PAGE 24

PAGE 25

FICPA.ORG/SF

3


MISSION STATEMENT

The power of a scholarship is

hope

Established in 1959, the FICPA Scholarship Foundation has provided millions of dollars in scholarships supporting Florida accounting students. Through the generous donations of FICPA members and community donors, the Foundation continues to annually award scholarships of $2,000-$5,000 each to assist Florida’s future CPA leaders. VISION

To be the leading organization providing scholarships to Florida’s accounting students. 4

2018-2019 FICPA Scholarship Foundation Annual Report

MISSION

To provide scholarships to accounting students in the state of Florida.


FICPA Scholarship Foundation Board of Trustees 2019-20 PRESIDENT Eugene W. Moore, PENSERVCO, Inc PRESIDENT-ELECT William C. Quilliam, Florida Southern College VICE-PRESIDENT Carshena T. Allison, BCA Watson Rice LLP Elizabeth D. Manso, Elizabeth Manso, CPA, PA SECRETARY TREASURER Deborah L. Curry, Florida Institute of CPAs IMMEDIATE PAST PRESIDENT Alan M. West, University of Florida TRUSTEES

The Scholarship Foundation gives students the ability to do something they could not otherwise do. Fueling the profession with talented new CPAs we would not otherwise have.

Silvana Capaldi, Ispirare Group Elizabeth T. Carlson, University of South Florida Jason A. Chorlins, Kaufman, Rossin & Co, PA David A. Cumberland, Kerkering, Barberio & Company Mamie L. Davis, Mamie L. Davis, PA Ashley M. Fagan, KPMG, LLP George A. Gulisano, Florida Skin Center Lazaro Gutierrez, Morrison Brown Argiz & Farra, LLC C. Michael Halfast, Risk Avoidance Managers, Inc William L. Houff, Carr, Riggs & Ingram, LLC Celina L. Jozsi, Florida Southern College Monte E. Kane, Morrison Brown Argiz & Farra, LLC Candy L. Kessel, Suplee, Shea, Cramer & Rocklein, PA Jason H. Klein, Jason H. Klein PA Gary J. Margolis, Callaghan & Margolis, C.P.A.’s George K. McNemar, BKHM, PA Steven Morrison, CohnReznick LLP Christopher Nelson, RGP - Central Florida Brandon S. Perry, Raposa Perry Young, LLC Angela M. Poole, AMP Expert Solutions, LLC Charles D. Riggs III, Morgan Stanley Noema E. Santos, State College of Florida Richard L. Shapiro, Bergman Hirsch Spilfogel & Tyman, CPAs Richard D. Smith, CPA G M. Stone, Stone, Parker & Company, CPA, PA Kenneth J. Strauss, Berkowitz Pollack Brant Advisors Paola D. Suarez, South FLA Business Banking-Chase Karen P. Vergara, Allgen Financial Advisors

FICPA.ORG/SF

5


FINANICAL POSITIONS

Statements of Financial Position

June 30, 2019 and 2018

ASSETS Cash and Operating Investment Pool Endowment Investment Pool Contributions Receivable, Net Other Assets TOTAL ASSETS

2019 2018 $941,993 $937,948 $1,600,322 $1,462,817 $90,429 $88,735 $12,741 $10,741 $2,645,485 $2,500,241

LIABILITIES AND NET ASSETS Deferred Revenues Accounts Payable and Accrued Expenses TOTAL CURRENT LIABILITIES

$19,470 $161,097 $180,567

$18,815 $142,000 $160,815

NET ASSETS Without Donor Restrictions With Donor Restrictions TOTAL NET ASSETS

$552,741 $1,932,649 $2,485,390

$508,863 $1,830,560 $2,339,423

Total Liabilities and Net Assets

$2,665,957

$2,500,238

Statement of Activities

6

REVENUES FICPA In-Kind Support Contributions & Gifts Fundraising Events, Net Investment Gains, Net TOTAL REVENUES AND GAINS

2019 2018 $252,090 $249,795 $87,656 $66,324 $76,197 $79,813 $58,925 $52,193 $474,868 $448,125

EXPENSES Grants & Scholarships Operating, Administrative & General TOTAL EXPENSES

$147,700 $283,289 $430,989

$162,157 $289,465 $451,622

CHANGE IN NET ASSETS Without Donor Restrictions With Donor Restrictions CHANGE IN NET ASSETS

$43,877 $102,090 $145,967

($3,499) $74,083 $70,584

Net Assets, Beginning of Year Net Assets, Ending of Year

$2,339,423 $2,485,390

$2,268,839 $2,339,423

2018-2019 FICPA Scholarship Foundation Annual Report


BY THE NUMBERS

Awards History Summary NUMBER OF QUALIFIED APPLICANTS NUMBER OF SCHOLARSHIPS AWARDED

119 81 64

2016

116 77

72

64

52

2017

2018

2019

TOTAL SCHOLARSHIP AWARDED

$144,438

$87,750

$162,157

$147,700

2020 Budget

$167,000 71

SCHOLARSHIPS ALLOCATED FICPA.ORG/SF

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Florida Schools Participating in the FICPA SF Scholarship Program 1

AVE MARIA UNIVERSITY

2 BARRY UNIVERSITY 3 BETHUNE COOKMAN 4 FLAGLER COLLEGE – ST AUGUSTINE 5 FLAGLER COLLEGE – TALLAHASSEE 6 FLORIDA A&M 7 FLORIDA ATLANTIC 8 FLORIDA GULF COAST 9 FLORIDA INSTITUTE OF TECHNOLOGY 10 FLORIDA INTERNATIONAL 11 FLORIDA SOUTHERN COLLEGE 12 FLORIDA STATE – PANAMA CITY 13 FLORIDA STATE – TALLAHASSEE 14 HODGES UNIVERSITY 15 INDIAN RIVER COLLEGE 16 JACKSONVILLE UNIVERSITY 17 KEISER UNIVERSITY 18 NOVA SOUTHEASTERN UNIVERSITY 19 SOUTHEASTERN UNIVERSITY 20 ST. LEO UNIVERSITY 21 ST. THOMAS UNIVERSITY 22 STETSON UNIVERSITY 23 UNIVERSITY OF CENTRAL FLORIDA 24 UNIVERSITY OF FLORIDA 25 UNIVERSITY OF MIAMI 26 UNIVERSITY OF NORTH FLORIDA 27 UNIVERSITY OF SOUTH FL – ST. PETE 28 UNIVERSITY OF SOUTH FL – TAMPA 29 UNIVERSITY OF SOUTH FL – SARASOTA-MANATEE 30 UNIVERSITY OF TAMPA 31 UNIVERSITY OF WEST FLORIDA

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2018-2019 FICPA Scholarship Foundation Annual Report

The FICPA Scholarship Foundation supports the future of the Accounting Profession. It encourages students with scholarships, assisting them through their journey toward becoming a CPA. Without these scholarships, deserving students might give up with a great loss toward continuing the profession.” — Dr. Elizabeth T. Carlson, University of South Florida, Sarasota-Manatee, Trustee, FICPA SF Board


2019-2020 FUNDRAISE GOAL #1

Strategic Plan

MORE MONEY

Increase monies available for student scholarships.

INSPIRE GOAL #2

MENTORING FUTURE CPAs

Trustees engaging with future CPAs; creating personal relationships with students, their organizations & schools.

EDUCATE GOAL #3

MORE SCHOLARSHIP APPLICANTS

Increase the number of qualified student applicants receiving scholarships.

LEAD GOAL #4

LEVERAGING RESOURCES

Leverage FICPA and the Foundation’s programs to prepare the next generation of CPAs & improve fundraising

DEVELOP GOAL #5

MORE DONORS

Increase brand awareness & generate new donations using social media

FICPA.ORG/SF

9


ABOUT

Donors & Scholarship Recipients Without your generous donations, the FICPA Scholarship Foundation would not be the leading source of statewide accounting scholarships for Florida accounting students. Thanks to the generosity of our donors, volunteers and Trustees – like the F. Gordon Spoor family, the Bond Foundation and Carroll and Company – the FICPA Scholarship Foundation continues to support the best and brightest of Florida’s accounting students and future CPAs. We know giving is not done to receive recognition but it’s the Scholarship Foundation’s privilege to thank you. We are honored to partner with people and companies that care about the CPA profession and to endeavor to use their time and resources to support the next generation of our future CPAs and leaders. YOU INSPIRE US DAILY. THANK YOU!

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2018-2019 FICPA Scholarship Foundation Annual Report


FALL 2019 SCHOLARSHIP RECIPIENTS

Foundation Awards

74 Fall Scholarships During the fall 2019 semester, the FICPA Scholarship Foundation awarded 74 scholarships to accounting students from 26 Florida universities. This is in addition to three scholarships awarded at the 1040K Run in April for a total of 77 Recipients. Congratulations to the following fall semester recipients. Barry | Trevor Holden Bethune-Cookman | Chakia Grate Flagler St. Augustine | Ryann Coppedge Flagler Tallahassee | Renee Coburn FLA A&M | Wicliff Fleurizard FLA Atlantic | Evelyn Abad, Clara Arango, Karlena Burch, Austin Dahlstrom FLA Gulf Coast | Stacy DiNardo FLA Inst. of Technology | Nicholas Driscoll, Ryan Fink, Shannon Kelley FLA International | Loidys Scott, Ingrid Hernandez, Daniel Weiland FLA Southern | Daniel Knapp, Edgar Sandoval, Madelyn Snodgrass, Sarah Yannick, Charles Gotsch, Hunter Harildstad

U. FLA | Ana Castro, Elliott Karr, Collin Kosuch, Andres Padilla, Jake Pagano, Rachel Moore U. Miami | Marshelle Davis U. N. FLA | Nathaniel Kauffman, Crystal Menza, Nicole Ordway, Houston Wilson U. S. FLA – Sarasota/Manatee | Elizabeth DeJong, Katie Kroos-Roberts U. S. FLA – St. Petersburg | Scott McMaster, Heather Shamblin, Suzanne Smith U. S. FLA – Tampa | Christopher Champlin, Hanna Gonsalves, Ethan Moses, Sharleen So U. of Tampa | Kristine Davis U. W. FLA | Claudia Griswell, Tatiana Kakliauskas, Christian Watkins

FLA State | Will Amouzou, Stephen Atkins, Alejandro Barnichta, Joseph Bianco, Julia Blair, Audrey Coleman, Bradford Heckman, Michael Scola, Jamiel Shillingford Hodges | Loyda Fernandez Indian River | Jason Drake, Cynthia Fulmer, Becky Wich Jacksonville U | Jacqueline Hodskins Southeastern | Jacqueline St. John St. Leo | Jacob Wolstenholme, Theresa Kimball, Gregory Miller Stetson | Mark Hodae, Ivan Veramkovich U. Central FLA | Malcom Brown, Ashley Callahan, Douglas Kersey, Eleni Pampoukis, Samir Fikry, Angela Pitino, Michele Roby, Caitlin Mingonet

Learn more about 2020 scholarships, qualifications and application deadlines at scholarships.ficpa.org. FICPA.ORG/SF

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SCHOLARSHIP RECIPIENT STORIES

In Their Words: Stories from Our Scholarship Recipients

I worked about 80 hours per week just to try to save up enough money to go back to school. … If you’ve ever donated in your life, no matter how small it is, I hope you know that you are a blessing and you are impacting the lives of many people around you.” — Sharlene So, scholarship recipient WATCH THE FULL VIDEO: FICPA.ORG/SHARLENE

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2018-2019 FICPA Scholarship Foundation Annual Report


I have a 4.0 in the Master’s program, [but] I would not have been able to sign up without some type of help. … It helps create a community, a sense of family.” — Jackie Bryant, student, Stetson University WATCH THE FULL VIDEO: FICPA.ORG/JACKIE

The Foundation gave me a check but it [also] gave me more time for my studies, and the opportunity to create a lot of memories that I would not otherwise have had.” — David Cumberland, CPA, CGMA, manager - Kerkering Barberio, FICPA Scholarship Foundation previous scholarship recipient, past president & Board trustee WATCH THE FULL VIDEO: FICPA.ORG/DAVID

I remember every single person that covered that small increment that I couldn’t cover and for me that was the FICPA. That helped me out, it really made a difference.” — Leighann Davis, CPA, operational audit analyst, Saddle Creek Logistics Services WATCH THE FULL VIDEO: FICPA.ORG/LEIGHANN FICPA.ORG/SF

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DONORS

DEREK BLAKESLEE

Bond Foundation Funds Three Accounting Scholarships

Derek Blakeslee and his wife Ann serve on the board of the Bond Foundation, Inc, a private grant making foundation founded in 1997 from the estate of Blakeslee’s mentor, Walter Bond. Three extra scholarships were awarded during the fall 2019 semester by the FICPA Scholarship Foundation thanks to a generous financial gift from the Bond Foundation. Bond board member Derek Blakeslee has been a CPA for 31 years and a loyal member of the FICPA since the date he passed the CPA exam. An ardent supporter of the profession, Blakeslee also is a member of the Florida CPA/ PAC and long-time Scholarship Foundation donor.

FICPA Scholarship Foundation scholarships make a huge impact on accounting students’ lives and help to ensure the future of our profession. Scholarship recipients benefit in two ways. First, the scholarship funds provide an immediate boost financially as they complete their education. Second, their employment opportunities are bright as employers value the great qualities which these top students have.” — Dr. Will C. Quilliam, Accounting Department Chair, Florida Southern College, President-Elect, FICPA SF

14

The Bond Foundation, based in Winter Garden, charitably awards over $350,000 annually to various programs, primarily in the Central Florida area. The Bond Foundation board includes three CPAs. Collectively they determined that creating three named scholarships ($2,000 each) through the FICPA Scholarship Foundation to be a powerful way to promote the FICPA while helping future CPAs offset the rising costs of tuition. The 2019 Bond Foundation scholarships were awarded to Rachel Moore, a student at the University of Florida (Derek’s Alma mater); Will Lomawu Kossi Amouzou from Florida State University (Ann’s alma mater), and Michele Roby from the University of Central Florida (the alma mater of another Bond Foundation CPA board member). 

2018-2019 FICPA Scholarship Foundation Annual Report

The Bond Foundation board plans to continue supporting the FICPA Scholarship Foundation and the FICPA for many years to come; both individually and through its Foundation. “I wish more people would realize how helpful this funding is for students and how supporting the FICPA Scholarship Foundation helps our CPA brand,” said Blakeslee. Most importantly, Derek knows that his financial support is having a positive impact on the next generation of CPAs. Through the Named Scholarship Program, individual and corporate donors may designate which school(s) will receive their scholarship(s). Donors are invited to personally present their named scholarship award(s) to deserving fourth or fifthyear accounting students. “The Named Scholarship Program is a wonderful way for donors to get directly involved with the students, without the responsibility of evaluating applicants, explained Jan Dobson, FICPA Scholarship Foundation sr. director. “Once a donor chooses the school, our Foundation takes care of matching the funds with a deserving Florida accounting student.”


DONORS

Family Honors F. Gordon Spoor with Endowed Scholarship

Incoming FICPA Chair W.G. Spoor, along with his siblings James “Rusty” Spoor, Mathew L. Spoor, and Danielle Cole were looking for a special birthday present for their dad and longtime CPA, Gordon Spoor. They decided on a gift that will honor their dad into perpetuity – an FICPA Scholarship Foundation Endowed Scholarship. The F. Gordon Spoor Endowment will fund a half scholarship each year for a deserving 4th or 5th-year accounting student at the University of South Florida, St. Petersburg or Tampa campus. Gordon Spoor, CPA, PFS, CGMA is principal at Spoor Bunch Franz in St. Petersburg. He founded Spoor + Associates in 1974, after graduating from USF and is a past member of the FICPA Scholarship Foundation’s Board of Trustees.

“Endowments change lives – and the future of the profession,” said SF President Eugene “Bill” Moore. “Planned giving gifts like this one from the Spoor children to their dad are a double-win, providing a lasting tribute and helping tomorrow’s leaders of the profession.” For information about the Named Scholarship Program, Endowments and other ways to give, please contact scholarships@ficpa.org or visit www.ficpa.org/SF.

An active FICPA member since 1980, Gordon was awarded the FICPA Presidential Service Award for his efforts as the lead representative on the FICPA’s Florida Uniform Principal and Income Act task force. Gordon served on the FICPA Board of Governors, is a multiple winner of the outstanding CPE speaker award, and has a long committee service record including chairing the State Legislative Policy and Federal Taxation Committees. He also is an AICPA member and was a member of the AICPA Tax Executive committee from 2012-16.

FICPA.ORG/SF

15


DONORS

Carroll and Company Honors Retiring Principal with Endowment

In 2017, as Rick Carroll was contemplating retirement, members of his firm were contemplating an exceptional way to honor their extraordinary leader. Frederick “Rick” Carroll III, CPA founded his Tallahassee firm in 1990, growing it to be one of the area’s largest full-service accounting firms. Carroll and Company’s Managing Partner and FICPA Chair Abby Dupree explains it best. “Rick was, and still is my mentor. He instilled confidence. When you’re a young staff person you’re scared to make decisions. He always encouraged me.”

Scholarships ensure that accounting students who encounter financial difficulties are able to complete their education and enter the CPA profession. Scholarships also encourage academic excellence by supporting those who have a robust grade point average in accounting courses and a record of educational accomplishments. The future of the profession relies on its ability to attract talented individuals. One way to accomplish this goal is by providing financial support and helping students complete their studies.”

“Yes, we could have held a retirement party, but we can have a party any day of the week – it didn’t mean that much to Rick. We started talking about establishing an Endowed Scholarship in Rick’s name, one that would provide a scholarship for a deserving accounting student, into perpetuity, at his alma mater, Florida State. Unsure of the endowment process, we contacted the FICPA Scholarship Foundation to get a better understanding of how it works and how much we needed to collect to make a difference.” Abby and her team learned that establishing an endowment is not a complicated process.

— Dr Amy Santos, Department Chair, Business and Technology, State College of Florida, Trustee, FICPA SF Board

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2018-2019 FICPA Scholarship Foundation Annual Report

“We surprised Rick with it, I think he was almost brought to tears. It meant so much to him that something named in his honor would help accounting students become the next generation of CPAs. We spent some time figuring how we do this. We sent letters to clients and friends encouraging them to please consider this charitable contribution to the endowment. For us all, encouraging accounting students to go the extra step, to become a CPA…was a powerful way we could make a difference while honoring Rick’s service. Rick has served on the FICPA’s Board, at the local chapter and state levels for most of his career. His community service is equally impressive, including serving at various levels on the Boards of the local hospital, blood center, hospital foundation, county school foundation, Board of Accountancy (and more). “The endowment is a wonderful gift that will provide a scholarship every year, forever. It will be there when Rick Carroll isn’t. He’s extremely honored, I know he is,” said Dupree of her mentor. For more information on establishing an endowment, visit www.ficpa.org/sf or contact Sr. Director Jan Dobson, jan@ficpa.org.


GET Involved

FICPA.ORG/SF

17


HOW TO GET INVOLVED

HOW TO Get Involved

Our success isn’t possible without you. Help expand the Scholarship Foundation’s reach and effectiveness by contributing in any of the following ways ATTEND VOLUNTEER SPONSOR DONATE

Attend or sponsor an event at FICPA.org/sf. Discover all the ways you can give at FICPA.org/sf-giving.

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2018-2019 FICPA Scholarship Foundation Annual Report


EVENT HIGHLIGHTS

31st Annual 1040K Run

ANNUAL 1040K RUN THE BIGGEST END-OF-TAX-SEASON PARTY IN SOUTH FLORIDA As the end of tax season draws near, CPAs, students, and businesses from around South Florida gather to celebrate at the Scholarship Foundation’s 1040K Run. The event features 10k and 5k races, plus a one-mile fun run/walk for kids and families. Proceeds from the event are awarded to deserving South Florida accounting students in memory of Lewis Davis, Miami-Dade County’s first African-American CPA, community leader, and co-founder of the Greater Miami-South Florida Chapter — National Association of Black Accountants, Inc. In 2019, we presented $9,000 in scholarship awards to three local students. WAYS TO GET INVOLVED: Sponsor, run, volunteer at the race. NEXT EVENT: March 29, 2020

Learn@Sea Cruise

Las Olas Boulevard, Ft. Lauderdale.

SAILING TOWARDS A BRIGHTER PROFESSIONAL FUTURE This recap was contributed by Ellen Holloway, FICPA Sailfish Chapter Treasurer The fifth annual FICPA Sailfish Chapter Learn at Sea Cruise took place May 9-12 aboard the Royal Caribbean megaship Harmony of the Seas. The getaway included a one-day stop in sunny Nassau plus a day cruising the beautiful Caribbean waters. Net proceeds were donated to the FICPA Scholarship Foundation. Since inception chapter’s Learn@Sea Cruise has donated nearly $12,000 to the Foundation. Our fun group of 42 included 18 CPAs. The Chapter provided four hours of CPE, including two hours A&A by Mark Sellner, CPA, JD, LLM and two hours TB by Michael A. Lampert, ESQ. The group enjoyed a festive Mexican Fiesta cocktail party generously sponsored by TD Bank. The chapter also thanks Jim and Gerry Keefe for their generous Lido sponsorship. The 6th Annual Learn@Sea Cruise takes place May 1-4, 2020 aboard Royal Caribbean Mariner of the Seas. Contact Ellen Holoway (eholoway1964@gmail.com), Sailfish Chapter Treasurer, for additional information. WAYS TO GET INVOLVED: Register online to attend the cruise NEXT EVENT: May 1-4, 2020

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2018-2019 FICPA Scholarship Foundation Annual Report

Cape Canaveral


EVENT HIGHLIGHTS

Golfing Fore Education

TOURNAMENT SCRAMBLE FOR A CAUSE Golfers and friends of the FICPA Scholarship Foundation enjoyed a day of fellowship and fun to raise funds for accounting scholarships through the Mia A. Thomas Endowment at MetroWest Golf Club. Thank you to our sponsors and players for supporting the 4th Annual Golfing Fore Education. WAYS TO GET INVOLVED: Attend or sponsor the event NEXT EVENT: May 8, 2020

Orlando

Day at the [Horse] Races NEW-2020! Tampa Bay Downs, Tampa

Suncoast Scramble Golf Tournament

Friday, May 1

FIFTEEN YEARS OF LOCAL LEARNING AND IMPACT One of the Foundation’s most valuable resources are our local networks and connections. The strength of those connections is perhaps most visible at the annual Suncoast Scramble Golf Tournament, which is co-hosted by the FICPA’s Suncoast Chapter. This year marked the 15th edition of the event, which features a morning CPE session followed by lunch, networking, and a golf tournament to decide the winner of the coveted Florida CPA Champions Cup. In 2019, the event raised nearly $20,000 to assist future leaders of the CPA profession. WAYS TO GET INVOLVED: Sponsor, attend CPE and/or golf, volunteer at the tournament. NEXT EVENT: Thursday, June 4

Oldsmar

FICPA.ORG/SF

21


EVENT HIGHLIGHTS

Family Retreat & Golf Tournament at Ocean Reef

VACATIONING FOR A CAUSE Since its inception, the Family Retreat and Golf Tournament at Ocean Reef has raised more than $100,000 for deserving Florida accounting students. Held on beautiful Key Largo at the five-star Ocean Reef resort, the event features four full days of family-friendly fun and relaxation: • Golf Tournament • Family luau and movie nights

• Diving, snorkeling, and fishing • Kid-friendly and adult pools

Ocean Reef offers a unique chance for FICPA members and key business leaders from around the industry to meet each other, build relationships, and unwind with their families. The 2019 edition of the Retreat and Golf Tournament took place July 25-28. We were proud to host more than 200 attendees! WAYS TO GET INVOLVED: Sponsor, donate silent auction items, attend, volunteer during the event. NEXT EVENT: J uly 23-26, 2020 Ocean Reef Club, Key Largo Golf Tournament: July 24, 2020

Tampa Bay Scholarship Night

CELEBRATING YOUNG CPAS AND ACCOUNTING STUDENTS In October 2018, the Scholarship Foundation hosted the inaugural Tampa Bay Scholarship Night, where we recognized local accounting students who had been awarded Foundation scholarships and celebrated their achievements with the local community. The evening was made magical as every student was personally introduced by their sponsor and each shared their moving thanks and academic story with the audience. Nearly 200 students, sponsors and families attended the event, which featured scholarship presentations, a keynote speech from Frederick Ellis Fisher (namesake of the University of Florida’s Fisher School of Accounting), and a red-carpet atmosphere. WAYS TO GET INVOLVED: Sponsor, donate silent auction items, attend, be an event volunteer. NEXT EVENT: 3rd Annual Tampa Bay Scholarship Night: October, 2020 Tampa

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2018-2019 FICPA Scholarship Foundation Annual Report


EVENT HIGHLIGHTS

Accounting Scholars Leadership Symposium & Emerging Leaders Program

INVESTING IN OUR FUTURE The FICPA and Scholarship Foundation believe in the investment in the next generation of CPAs. There are several programs for students and young professionals that boost awareness of the opportunities and support available for students on their journey to becoming a CPA. Once a member is certified as a CPA, the FICPA offers programs and resources to aid in their development and career advancement. EMERGING LEADERS PROGRAM AND SUMMIT The FICPA Emerging Leaders Program is a selective leadership development opportunity for young CPAs looking to grow in their careers and impact their communities. The Emerging Leaders Program consists of five elements: a leaders kick-off, two regional events, a service project, and the Emerging Leaders Summit. The Summit is open to all young professionals. The 2019 Emerging Leaders Program Class consisted of 27 program participants from across the State of Florida. More information can be found online at emerging.ficpa.org. ACCOUNTING SCHOLARS LEADERSHIP SYMPOSIUM This invitation-only FICPA program takes accounting students on a three-day, deep dive into what it means to be a CPA. Held in Central Florida and in conjunction with the FICPA Mega Conference in June, the Symposium offers students a chance to meet and network with practicing CPAs, hone their interview and resume skills, and learn from leaders in the field by visiting local firms and companies. The 2019 program hosted 32 students. Learn more at www.ficpa.org/ASLS. ACCOUNTING SHOW NEXT ERA STUDENT TRACK The FICPA Accounting Show Next Era Student Track drew hundreds of CPAs from across the state to learn and network together in South Florida. As a student member, you can attend the one-day Student Track and meet potential employers, participate in sessions specially curated for students, and mingle with other FICPA members. Learn more at www.ficpa.org/AS.

FICPA.ORG/SF

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WE ARE

STUDENT PROGRAMS — BY THE NUMBERS

Making an Impact

3,265

Student Members in 2019

$147,700

57

awarded in scholarships in 2019 to

77 students

universities that have a student or educator with an FICPA membership

207

CPA candidate Members

* 27

Recognized as an Emerging Leaders Program Scholars

853

New Florida CPAs in 2018

* 32

Accounting Scholars Leadership Symposium participants *2018-19

24

2018-2019 FICPA Scholarship Foundation Annual Report

* 22

participants in the Accounting Show Student Track


ENDOWMENTS

Scholarship Foundation Endowments CHANGE LIVES — AND THE FUTURE OF OUR PROFESSION. Endowments secure the future of accounting education in Florida for generations to come. Setting up a Scholarship Foundation Endowment ensures that you or someone you choose to honor will leave an impact on tomorrow’s accounting leaders. Our Endowments are all unique, vitally important, and serve as testaments to the generosity and accomplishments of the donors who establish them. To learn more about our endowments or how to start your own, visit FICPA.org/SF-Endowments.

We gratefully acknowledge our Endowments and Benefactors. Their generous investments will continue giving to the CPA profession for future generations. Each Endowment is unique make your contribution today to help grow these specific funds.

Thank you so much for your generosity! Contributions like yours aid students to support their financial education needs. I feel honored and grateful for being a recipient of the FICPA scholarship for the fall semester of the 20192020 academic year. My intention is to complete the program, sit for the CPA exam, and continue with my FICPA membership. — Sharlene So, Scholarship Recipient

Kathryn B. Anderson, CAE Endowment

Michael R. Pender, Jr., CPA Endowment

Tommye E. Barie, CPA Endowment

Martin M. “Marty” Prague Endowment

Brigade Bookkeeping Endowment

George E. Shierling Platinum Endowment

Gerald J. Cavanaugh Endowment

F. Gordon Spoor, CPA Endowment

Frederick “Rick” Carroll, III Endowment

Ben A. Stevens, Jr. Endowment

Jason A. Chorlins Endowment

John Perry Thomas, CPA Endowment

Douglas James Davis Endowment

Mia A. Thomas, CPA, CGMA Endowment

Irvin N. Gleim Endowment

Lloyd A. “Buddy” Turman Endowment

George A. Gulisano Endowment

James Wilcox Endowment

Robert R. Harris, CPA/CFF Endowment

FICPA North Dade South Broward Chapter Education Endowment

Orvis M. Kemp Endowment James M. “Jim” Lane, CPA Endowment

Legends Endowment


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Florida Institute of Certified Public Accountants 3800 Esplanade Way, Suite 210 Tallahassee, FL 32311

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Becoming a strategic advisor for your organization.

F I C PA

C O N F E R E N C E Formerly the CPAs in Industry Conference

MARCH 26 – 27, 2020 TAMPA + LIVE STREAM

T WO WAYS TO AT T E N D

CPE: UP TO 17 DON’T MISS OUR ETHICS COURSE ON WEDNESDAY, MARCH 25! Separate registration required.

FICPA.ORG/IC

As a CPA or CFO in business & industry, you are charged with creating the financial health of your company and must rely on more than your finance skills to succeed. The FICPA CFO & Controller Conference provides unique tools for corporate CPAs and CFOs, helping you to be the best in your profession. HOT TOPICS • Cybersecurity Threats • Industry FASB Update • Business Continuity • Social Media Crisis Management • Forensic/Fraud topics • Robotics for Accounting

Profile for Florida Institute of CPAs

Winter 2020 - Florida CPA Today | Volume 36, Number 1  

What's Inside: QBI Take 2: Qualified Business Income Deduction Carryforward Issues for 2019 529 Education Funding, Transfers and Un-Fundin...

Winter 2020 - Florida CPA Today | Volume 36, Number 1  

What's Inside: QBI Take 2: Qualified Business Income Deduction Carryforward Issues for 2019 529 Education Funding, Transfers and Un-Fundin...

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