Monday, December 22, 2014

Tax Extenders Legislation - Congress Passes; President Signed

On Tuesday December 16th, the Senate approved a “Tax Extenders” bill previously approved by the House of Representatives.  President Obama signed this bill on Friday December 19th.  The legislation extends for one year a number of tax deductions and credits that had expired on January 1, 2014.

We expect that the following provisions included in the legislation will be relevant for many KOS clients:

  • First-year bonus depreciation of 50% is available for qualified property placed in service before January 1, 2015.  This applies to property the original use of which commences with the taxpayer but not to most real property. 
  • For 2014 the section 179 election can be made to expense up to $500,000 of new or used tangible personal property placed in service in the taxpayer’s trade or business.  A phase-out kicks in when additions of eligible property exceed $2 million for the year. It had previously been reduced to $25,000 for 2014.
  • The research credit and work opportunity credit are extended.
  • The up-to-$250 above-the-line deduction for educator expenses is extended.
  • The exclusion for up to $2 million of debt-discharge income arising from home mortgage debt is extended.
  • The deduction for state and local sales taxes is extended.  (Taxpayers that itemized can deduct the greater of state income taxes paid or sales taxes paid.)
  • Individuals who are older than 70 ½ can make direct transfers of up to $100,000 from their IRA to charities.  Under the provision the amount transferred from the IRA is not included in taxable income nor is the amount treated as a deductible charitable contribution.  But by reducing adjusted gross income this approach can reduce the itemized deduction haircut, the portion of Social Security benefits subject to tax, and may even reduce Medicare insurance premiums.

The above does not list all of the items affected by the extenders legislation.  If you have any questions or seek further clarification please contact your KOS professional.

Monday, December 15, 2014

Kessler Orlean Silver & Co., P.C. (KOS) and Ruzicka & Associates, Ltd. Announce Merger

December 15, 2014
Kristin Kentra, Marketing Director


Kessler Orlean Silver & Co., P.C. (KOS) and Ruzicka & Associates, Ltd. Announce Merger

Two firms join forces to expand scope of services offered to clients

Kessler Orlean Silver & Co., P.C. (KOS) is pleased to announce that it has merged in Ruzicka & Associates, Ltd. of Northbrook, IL effective December 1, 2014. Ruzicka & Associates, Ltd. and its three principals have moved into the KOS offices in Deerfield, IL and operate under the KOS name.

Founded 38 years ago, Ruzicka & Associates, Ltd. provides a full range of accounting and tax services with a strong specialty niche servicing not for profit (NFP) clients. KOS has a long history of providing innovative accounting solutions to business owners, executives and managers, private investors and professionals. The merger will enhance KOS’s presence in the not-for-profit arena and provide Ruzicka’s clients access to a wider range of tax, accounting and business consulting capabilities.

Anne, Carl and Tony Ruzicka strongly believe that this combination positions their clients to be served with an even broader range of expertise. “We know that our combined resources will benefit our clients, KOS clients and all prospective clients,” stated Anne.

“Our firms share a common culture and a desire to provide superior service and expertise to our clients,” KOS Managing Partner Jeff Arnol said in a statement. “This enhances both of our existing niche sectors and strengthens new business opportunities. We look forward to working together to provide excellent service and deep expertise to current and future clients.”

In addition to expanding niche specialty areas for both firms, the merger also provides clients with additional depth of experience in core services such as audit, tax, accounting and business advisory services. The Ruzickas and Arnol both commented that the management teams of both firms will remain intact and will continue their management and leadership roles within the new firm.

The KOS offices are located at 1101 Lake Cook Road, Suite C, Deerfield, IL 60015 and the main number is 847-580-4100. For more information, please visit their website at