Member of Russell Bedford International, a global network of independent professional service firms.
Member of Russell Bedford International, a global network of independent professional service firms.
MSA | Senior of Accounting Services
Technology is advancing at an exponential rate. To put this into perspective, it took 2.4 million years for our ancestors to discover and control fire for basic needs, yet only 66 years passed between the first airplane flight and having humans landing on the moon. Knowing this, if your accounting software looks and feels like it was designed in the early 2000s, it’s probably time for an upgrade. Here’s why:
These are just a few of the ways outdated accounting software can hold your business back from achieving growth and success. As you begin researching your next upgrade, you’ll likely discover even more areas for improvement. Now, let’s explore why modern accounting solutions are so effective.:
Upgrading to modern accounting software isn’t just about keeping up with the times. It’s about making your life easier, saving money, and setting your business up for long-term success.
Client Accounting Advisory Services (CAAS) at Cray Kaiser can help you modernize your accounting systems. We take the time to understand the story behind those numbers. Our goal isn’t to only provide data but to empower you with the knowledge and understanding needed to make confident, strategic decisions. With CK’s CAAS, you’ll have a trusted partner helping you navigate the transition to modern accounting software. You can learn more about our services by visiting our CAAS page.
In Cray Kaiser’s Employee Spotlight series, we highlight a member of the CK team. We couldn’t be prouder of the team we’ve grown and we’re excited for you to get to know them. This month we’re shining our spotlight on Emily Zeko
As a Senior Tax Accountant, Emily is a key player on the CK tax team. She spends her days preparing and reviewing tax returns, assisting with tax planning, and responding to federal and state tax notices. As a generalist, Emily has experience with a wide range of tax returns, from individuals to passthrough entities and corporations. While she’s well-versed in many areas, she has a growing passion for international tax and hopes to make it her area of expertise as she continues to gain experience.
Emily joined Cray Kaiser in October 2024, eager to grow her skills and strengthen her expertise across diverse clients. But what truly set CK apart for her was the welcoming, friendly atmosphere she experienced during her interview. “Everyone I met was incredibly kind, and the environment was so positive; it made me excited to be part of this team.”
When asked which of CK’s core values resonates with her most, Emily immediately chose Integrity. “In the tax profession, there are moments when we might feel pressure to make morally gray decisions to satisfy clients. I believe that maintaining a strong ethical code is essential in everything we do.”
For Emily, the most meaningful moments in her career come when she gets to meet clients face to face. “In tax preparation, it’s easy to get caught up in the numbers and forget that there are real people behind them. Meeting clients in person, hearing about their businesses, or even seeing their operations firsthand is always a powerful reminder of why our work matters.”
For anyone just starting in the accounting field, Emily offers this advice: Be kind to yourself when it comes to the CPA exam. “It’s completely normal to struggle with studying after a full day of work. I had to take time off to pass my exams, and that’s okay. Everyone’s journey is different. What matters is finding what works for you.”
Now, let’s get to know the lighter side of Emily – straight from her own words!
Do you have a special talent or hobby?
I love to sing! I was in choir up until college, and I miss it dearly. My forte (no pun intended) was blending and harmonizing.
What’s your favorite vacation spot?
Disney World in Florida. I’m very in touch with my inner child, and nothing beats the magical feeling of being there!
What’s on your music playlist?
I’m a diehard Swiftie! Taylor Swift’s music has a song for every mood. I also love current pop music, especially anything with influences from ’70s funk.
What’s the last book you read?
I’m currently reading Les Misérables. I love the musical and wanted to dive deeper into the original story. It’s been refreshing to read something older and so rich in history.
As we celebrate International Women’s Day, we take this opportunity to honor the incredible women of Cray Kaiser. Their dedication, expertise, and leadership drive our firm’s success and make a lasting impact on the accounting profession.
International Women’s Day has been observed since the early 1900s. It’s a day to recognize the social, economic, cultural, and political achievements of women worldwide and to advocate for gender equality.
We’re proud that women make up 54% of our team with 67% of the Firm being women-owned. Their contributions across accounting, tax, and advisory services bring diverse perspectives and innovative solutions to our clients every day.
International Women’s Day is a powerful reminder of the importance of gender equality and the need to continue fostering an environment where women can thrive and lead. At CK, we are committed to empowering women by providing opportunities for growth, mentorship, and leadership at every level.
Today, and every day, we celebrate the achievements and resilience of women around the world. Join us in recognizing the remarkable women who shape our industry and inspire future generations.
Senior Tax Accountant
Is your business fully leveraging available tax credits? The Returning Citizens Credit is a valuable incentive that could reduce your tax liability while supporting workforce reintegration for formerly incarcerated individuals.
The Returning Citizens Credit, initially introduced in Illinois in 2006, as the “ex-felon tax credit” is a tax benefit designed to encourage businesses to hire formerly incarcerated individuals. Originally businesses were eligible for a 5% tax credit on wages paid to eligible employees, with a cap of $1,500 per individual.
Beginning in 2025, the program was renamed the “Returning Citizens Credit” and expanded to provide a more substantial benefit: businesses can now receive a tax credit equal to 15% of wages paid to eligible employees, up to a maximum of $7,500 per individual per year. This adjustment aims to further incentivize employers to provide opportunities to those reentering society.
To qualify for the Returning Citizens Credit, an individual must meet the following criteria outlined in the Illinois credit code 5380.
The process of claiming the Returning Citizens Credit varies depending on your business’s structure. The credit is reported on the following forms:
When claiming the credit, a business will need to provide the following information for each qualifying returning citizen:
Once the credit is correctly calculated and the respective form is completed, it will be reflected on schedule K-1p for partners or shareholders, IL-1120 for C- Corporations and IL-1040 for individual tax returns.
Qualifying wages for the credit are those subject to unemployment tax under IRC Section 3306. Additionally, wages must be paid within one year of the employee’s hire date to qualify for the credit.
It’s important to note that you can only claim the wages paid during the tax year in which you are filing for the credit. If you claim the credit for multiple years, you’ll need to include the amount of the credit claimed in the previous years, as the maximum credit per returning citizen is capped.
The Returning Citizens Credit is a tool for businesses looking to reduce their tax burden while offering a second chance to those who have been incarcerated. By understanding the eligibility criteria, qualifying wages and the necessary steps to claim the credit, you can ensure that your business can take advantage of this opportunity. The qualified tax professionals at CK can help you navigate the process and optimize your business’s tax benefits. You can call us at 630-953-4900 or contact us here.
Tax season is upon us, and at Cray Kaiser, that means two things: extra efforts and the fiercest office rivalry this side of the accounting world. While our team spends their weekdays crunching numbers, lunchtime on Saturdays is reserved for a different kind of competition. Welcome to Season 3 of CK Nation – a high-stakes battle between Team Assurance and Team Tax, where spreadsheets take a backseat to sportsmanship (and sometimes sheer luck).
CK Nation isn’t just about bragging rights. Oh, no, it’s more than that. It’s about survival. When the calculators are put down and the coffee pots are refilled, our accountants, auditors, and tax professionals engage in epic lunchtime showdowns. Every Saturday, these two powerhouse teams face off in challenges designed to test their skill, precision, and ability to function on a diet of takeout and caffeine. Game on!
Will Team Assurance audit their past performances and give themselves a glowing review? Or will Team Tax claim the ultimate deduction, writing off their opponents’ chances entirely? No one knows for sure but with fierce competition, nonstop puns, and the ever-watchful eyes of our dynamic ref duo (one tall, one questionable, both equally ruthless), there’s no room for funny business. Every match is a battle for bragging rights!
Every year brings a fresh season of wild, heart-pounding challenges, but past competitions have included some true greats. There’s Cards, where players master the high-stakes art of flicking playing cards into a distant trash can. Top Gun takes paper airplane precision to legendary heights – so intense that even Maverick and Goose might think twice. And then there’s Field Goal, where the delicate craft of finger football meets tiny uprights and big bragging rights. Of course, we also honor the classics like Hot Potato, Chopsticks, and Bowling because some games never go out of style.
But here’s the twist: teams never know what game they’ll face next. Each challenge is kept top secret, adding to the suspense and strategy. Every Saturday brings a spectacular surprise, turning players into quick-thinking competitors ready to conquer whatever comes their way!
At stake? The illustrious, highly sought-after CK Cup. Forget championship rings or gold medals – this trophy represents the pinnacle of tax-season athleticism. Only one team will claim the honor of hoisting the CK Cup at season’s end. Will it be a meticulous strategist of Assurance or a tax-savvy tactician from Team Tax? The battle rages on.
One thing’s for sure: when April rolls around, there will be one winner and one office full of high fives and celebration, knowing we thrived through another tax season – not just with spreadsheets, but with a bit of fun along the way.
Stay tuned for more updates, and may the best team win!
CPA | CK Principal
The death of a spouse is a profoundly challenging time, both emotionally and financially. Amidst the grieving process, surviving spouses must also navigate a complex array of tax issues. Understanding these tax implications is crucial to ensuring compliance and optimizing financial outcomes. This article explores the key tax considerations for surviving spouses, including filing status, inherited basis adjustments, home sale exclusions, notifications to relevant agencies, estate tax considerations, and trust issues.
If you have a team of trusted advisors – accountants, attorneys, insurance, and/or financial professionals – these individuals are adept at advising clients during this trying time. They have experience in dealing with these difficult issues and can advise in a non-partial way. Let them help you as you grieve your loss.
Ideally, determining the key advisors should not be a difficult process. In some cases, prepared individuals may have created a crash card to assist their families upon their passing. The crash card may help you identify advisors and to know where important documents are stored.
It is imperative for the surviving spouse to notify the Social Security Administration (SSA) of the spouse’s death to adjust benefits accordingly. Usually, the funeral home will notify SSA, but to be safe, the surviving spouse should also contact SSA. Similarly, any payers of pensions or retirement plans must be informed to ensure the proper distribution of benefits and to avoid potential overpayments that would have to be repaid.
To prevent future complications, it is essential to change the title of jointly held assets to the survivor’s name alone. This includes real estate, vehicles, and financial accounts. It is also an opportunity to determine whether ownership should be held individually or in trust. Properly updating titles ensures clear ownership and facilitates future transactions.
Surviving spouses should also review and update their own beneficiary designations on life insurance policies, retirement accounts, and wills.
Many couples establish living trusts to manage their assets. Upon the death of one spouse, the trust may split into two separate trusts: one revocable and one irrevocable. The irrevocable trust typically requires a separate tax return. Understanding the terms of the trust and its tax implications is crucial for compliance and effective estate planning.
In the year of a spouse’s death, and provided the surviving spouse has not remarried, the surviving spouse has several filing status options. The option most often used is to file a joint tax return with the deceased spouse. This option is generally more favorable than filing as a single individual, as it allows for higher income thresholds and deductions. If the surviving spouse chooses not to file jointly, they may file as married filing separately or, if they qualify, as head of household.
If the surviving spouse has not remarried and has a dependent child, they may qualify as a “Qualifying Surviving Spouse” for up to two years after the year of the spouse’s death. This status offers benefits similar to those of filing jointly.
When a spouse passes away, the surviving spouse may receive an adjustment in basis for the inherited assets, which can significantly affect future capital gains taxes. The extent of this basis adjustment depends on how the title to the assets was held:
The rationale behind these basis adjustments is to align the tax basis of inherited assets with their current market value, thereby reducing the potential capital gains tax burden on the surviving spouse. This adjustment reflects the change in ownership and the economic reality that the surviving spouse is now the sole owner of the asset.
To establish the inherited basis, obtaining a qualified appraisal of the assets as of the date of death is often necessary. This appraisal serves as documentation for the basis and is crucial for accurately calculating capital gains or losses upon the future sale of the assets.
Surviving spouses may benefit from the home gain exclusion, which allows for the exclusion of up to $500,000 of gain from the sale of a primary residence, provided the sale occurs within two years of the spouse’s death, and the requirements for the exclusion were met prior to the death. This exclusion can be a valuable tool for minimizing taxes on the sale of a home, although in most cases, any gain within the two years is likely to be minimal because of the basis step-up provision. After the two-year period has elapsed, the exclusion drops to $250,000.
If the deceased spouse’s estate exceeds the federal estate tax exemption, an estate tax return may be required. Even if the estate is below the exemption threshold, filing an estate tax return can be beneficial to elect portability. Portability allows the surviving spouse to utilize the deceased spouse’s unused estate tax exemption, potentially reducing estate taxes upon the surviving spouse’s death. Not only federal estate tax laws should be considered, but state estate tax laws as well.
In addition to the primary tax considerations, surviving spouses must also be aware of how tax attributes are treated following the death of a spouse. Tax attributes include various tax-related characteristics such as net operating losses, capital loss carryovers, and passive activity losses. This can be complicated based on whether the attributes are related to a specific spouse or jointly.
The tax issues facing surviving spouses are multifaceted and require careful consideration. By understanding filing status options, inherited basis adjustments, home sale exclusions, and other critical tax matters, surviving spouses can navigate this challenging period with greater confidence and financial security.
Contact CK’s office at 630.953.4900 for professional tax assistance to ensure compliance and optimize financial outcomes during this difficult time. Our trusted team of advisors will be there to guide you every step of the way.
Senior Tax Accountant
If you’re running a small or medium-sized business, you know that cash flow is everything. Keeping up with payroll, replenishing inventory, and funding growth can feel like a never-ending balancing act. But what if there was a hidden way to free up cash?
Enter tax credits. These aren’t just numbers on a financial statement; they’re tools that can give your cash flow the boost it needs. Let’s explore how you can unlock these hidden advantages and give your cash flow a much-needed boost.
Unlike tax deductions, which only reduce taxable income, tax credits directly cut down your tax bill. That means more money stays in your business, strengthening your financial position and fueling growth. Here are some key credits to consider:
Why It’s a Win: Hiring new employees doesn’t just build your team, it can also boost your cash flow. The WOTC rewards businesses for hiring individuals from specific target groups, such as veterans, individuals from low-income areas, and long-term unemployment recipients.
How It Works: You may be able to claim a tax credit for a percentage of an employee’s wages during their first year on the job. This can help offset hiring costs while reducing your tax liability.
How to Qualify: Hire employees who meet WOTC eligibility, submit a certification request during the hiring process, and maintain precise hiring and detailed payroll records.
Why It’s a Win: Innovation pays off, literally. If your business is developing new products, improving processes, or advancing technology, you may qualify for the R&D tax credit.
How It Works: You can claim a percentage of qualifying R&D expenses, including any wages and supplies involved with the research. This directly reduces your tax bill, making it a valuable incentive for businesses pushing the envelope in their industry.
How to Qualify: Keep detailed records of your R&D activities, including project descriptions, expenses, and outcomes to support your claim.
Why It’s a Win: Startups and smaller businesses don’t have enough income to benefit from the R&D tax credit, but there’s a workaround. The payroll tax credit allows eligible businesses apply up to $250,000 of their R&D credit toward their payroll taxes instead.
How It Works: This option provides cash flow relief right away rather than waiting to offset future tax liability.
How to Qualify: Meet startup eligibility criteria (typically having less than $5 million in gross receipts) and ensure your R&D activities meet the requirements. Accurate documentation of expenses is key.
Why It’s a Win: Certain industries, such as renewable energy, manufacturing, and tech—benefit from specialized tax credits to encourage innovation and sustainability. These credits reward activities like energy efficiency improvements, eco-friendly initiatives, and technological advancements.
How They Work: Whether you are upgrading to energy-efficient equipment or investing in new technologies or adopting eco-friendly practices, these incentives help cut your tax bill and boost your cash flow.
How to Qualify: Research the credits available in your industry and ensure compliance with all relevant requirements to make the most of these opportunities.
Claiming tax credits is just the beginning. Once you secure them, they can be a powerful tool in your financial strategy. Use the extra cash inflow to invest in growth opportunities, pay down debt, or build a financial cushion for the future. By incorporating tax credits into your planning, you are setting your business up for stability and success.
Tax credits could be the key to unlocking new financial opportunities for your business. If you’re ready to explore which credits apply to you, Cray Kaiser is here to help. As experienced advisors, we specialize in helping businesses navigate the complexities of tax credits.
In this second installment of our series on navigating business mergers and acquisitions, Deanna Salo, Managing Principal at Cray Kaiser Ltd., shares valuable insights on preparing your business for a successful transition. Whether you’re planning to pass your company to the next generation, sell to a third party, or position your business for future growth, preparation is crucial. Join us as we delve into the foundational practices that set the stage for a smooth and strategic process.
Transcript:
My name is Deanna Salo, and I’m the Managing Principal here at Cray Kaiser, Limited CPAs and Advisors.
The next point is probably where people get really close to signing something, and that’s a letter of intent, also known as an LOI. My next part here is to talk about what really needs to be in that letter of intent. Our clients receive letters of intents from prospective buyers and they can be very vague. And in the vagueness, they may feel that it’s giving each party a balance of opportunity to future, to negotiate in the future on these various points. I see the letter of intent, the LOI, as the framework of your purchase agreement. So I believe the letter of intent does need to be far more specific in terms of what it needs to include and I believe they need to include the following items.
The purchase price and the purchase structure definitely is the first line of every letter of intent. I’m going to give you X dollars for your company and this is going to be an asset purchase or it’s going to be a stock purchase. The difference between an asset purchase and a stock purchase is probably its own audio blog at its own time, but often people understand when they go into selling their business that those are the two structural options that they have in terms of how the purchase of their company may be transacted.
How much is going to be paid in cash? Sometimes if I’m going to be selling my company for X dollars, I may get a certain percentage of it in cash at closing, and the rest of it might be paid to me over time in an earn out with interest or with not interest with a promissory note. So being very specific as to what is the dollar amount for sure, what is the structure of the deal for sure, and then more importantly is how much am I going to get at close. So if the buyer needs to finance this purchase, you as the seller need to know that very early in the conversations.
An escrow, similar to selling a house, there might be an escrow requirement. Most deals that I’ve seen in the last five to six years, they all have escrows. And an escrow is effectively a certain percentage of the purchase price that’s held in a separate account in the name of the buyer and the seller for a certain period of time, until such time is all of the post-closing adjustments have been handled by the post-closing activities. It’s really to keep money aside for some of those loose ends of the deal, and then at the end of the period, the escrow is finally released to the seller. Another important part of the escrow is to understand how long do I have to wait for this escrow to be released. We see anywhere from six months to twenty-four months on these escrows. So it’s really important for the buyer to understand that the seller needs to know how long is that escrow going to need to be in place.
The networking capital requirement is also a very important part of a definition in a letter of intent. Networking capital is really current assets, less current liabilities. If you can picture the first day of operations of the new buyer with your company. They open on day one and they need operating assets to operate. They need receivables to be coming in and they certainly still might have some of your net payables that they need to pay out. So understanding how much of the networking capital component requirement will be of the buyer is another important part of the LOI in terms of specifying what that would be. Most times we just see that there will be a networking capital requirement, and most times the buyer may not yet be ready to understand what that amount might be because they haven’t completed their due diligence. But I would say that at the very least, it should say that there is going to be a networking capital component, and it will be agreed to by both parties. So this way, you as the seller, make sure that you have a voice to that final amount of what might be needed in that networking capital component.
The letter of intent should also be very specific as to how much time the buyer has to complete their due diligence. You know as a seller time can be in your favor and time can be your worst enemy. With economic conditions changing so very quickly, if the buyer takes way too long to do their due diligence within the LOI framework, you may have economic conditions that will hamper the company’s ability and might actually reduce the value of your company. So making sure that the buyer has a specific period of time, we’ve seen it as few as forty-five days to complete their due diligence, all the way up to ninety days to complete their due diligence. Understand that letter of intent is an exclusivity arrangement between you and the buyer meaning at the time you sign the LOI, you are precluded from talking to anyone else. While an LOI is not binding, it does keep you both kind of on the same course to be honoring that LOI and being good stewards of the process to ensure that it gets completed in the right amount of time.
One of the other things that I see in LOIs that sometimes is missed is the transaction costs, professional fees. Professional fees should be taken on and each of the parties, the buyer and the seller, should take care of their own bills. As the seller, you can’t control how much attorney costs, advisory costs, will be generated by the buyer. And conversely, the buyer doesn’t have any control of the seller’s professional services from their accountants and attorneys. Ensuring that the transactional costs are paid for by each of their own parties and kept separate also commits to the letter of intent that should this deal not get done, meaning either party decides to walk away, that each party takes care of their own transaction costs at the end of the transaction.
The Non-Compete Agreement. Most times, the buyer will want to make sure that the seller, once they sell their company, they can’t turn around the next day and go open up a competing company down the block. So a non-compete is a very common additional bullet point in the letter of intent to suggest there will be a non-compete agreement, there will be a dollar amount assigned to the non-compete, and the seller will be precluded from operating in this industry for a certain sum of time. Perhaps a year, two years, three years, but it should be commented on that you as the seller will be committed to a non-compete. There’ll be a compensatory amount assigned to it and that you don’t want to have this non-compete to be for five or ten years. You want it to be a reasonable amount of time because if something goes wrong, you sell the company, the buyer is not really doing well with your company and you see it happening, you may want to open up your company again and having the non-compete understanding in the letter of intent protects both parties from doing the right thing during that period of time after the closing of the sale of your business.
Each company has key executives in their company, we wouldn’t get to where we are without having key personnel and ensuring that your key personnel are taken care of, I think is one of the head-to-heart conversations that most of our clients have. You know when you’re selling a business it’s a very emotional process and you’ve worked your lifetime to create the value, to create the place that you’ve created for your employees and your customers and your vendors and making sure that your key personnel are taken care of is very important to most sellers. So in the letter of intent, it’s another important part to have that the key executives in the company will be executing their own employment agreements with the buyer. So this ensures that you as the seller have a place for each of your key employees in the new company.
So we’ve talked a lot about mergers and acquisitions today mostly on the acquisition side and getting ready to be sold. Again, I think it’s important for any company in their strategic planning process to have many of these tools in their toolbox, being ready for a transaction, whether you’re going to buy a company or whether you’re positioning yourself to close, getting your financial warehouse in check, and getting ready operationally with your organizational structure to ensure that you have all the pieces laid out, the footprint of your company, understanding what should be included in a letter of intent, whether you’re buying again or selling your business, and making sure that your people at the end of the day are going to also be taken care of through employment agreements and be part of the team even in the in the new company if you’re selling your company.
All of this process there’s lots of phases to this process and at Cray Kaiser you know we’re here to help our clients again to and through their transactions at whatever point in their life cycle they’re at and if you need any further assistance on that please feel free to give us a call. Cray Kaiser is here for you during any part of this transaction.
In Cray Kaiser’s Employee Spotlight series, we highlight a member of the CK team. We couldn’t be prouder of the team we’ve grown and we’re excited for you to get to know them. This month we’re shining our spotlight on Raimonda Kesler. Raimonda is returning to Cray Kaiser after spending some time working for another CPA firm. Listen to her audio blog and learn more about why she came back to the CK team.
Transcript:
My name is Raimonda Kesler and I am an Assurance Senior here at Cray Kaiser. As an Assurance Senior, I manage audits and reviews for non-public companies, which definitely keeps me on my toes and engaged with a variety of clients. I also havethe responsibility of supervising and mentoring our staff, which is very fulfilling to help them grow and develop their skills. There’s more to my role. I am part of a dedicated team here at Cray Kaiser that’s focused on evaluating and improving our processes. We are always looking for ways to improve our efficiency and prioritize the tasks that truly offer more value to our clients.
As I am settling back into my role at Cray Kaiser, I’m reminded of what makes this place so special. The culture here is all about teamwork and support. It’s very refreshing to work in an environment where everyone genuinely cares about each other’s success. I miss the brainstorming sessions here at Cray Kaiser, being able to bounce off ideas of my colleagues and learn from their experiences, something I’ve really missed. I’m also excited about all the new initiatives Cray Kaiser is rolling out. It’s very inspiring to be a part of a company that values innovation and is constantly looking for ways to improve. I can’t wait to dive in into some of these projects and contribute my own ideas.
The five core values that guide us here at Cray Kaiser are education, integrity, people, care, and trust. A couple of years ago, I felt that integrity was the most important core value. It really resonated with me because integrity forms the foundation of everything we do. However, as I’ve grown and evolved in my role, I come to realize that care is now the value that’s sent out the most. While integrity is still incredibly important, I believe that care encompasses so much more. Caring for each other and our clients allows us to fulfill our other values like trust and integrity in a much deeper way. When we genuinely care, we create a culture where everyone feels valued and motivated to do their best work.
My journey in public accounting has been a bit unconventional. I earned my accounting degree and my CPA license while juggling the responsibilities of being a mom to two little girls. It was truly a family effort. Everyone played a role in making this happen. I couldn’t have done it without my husband, Jack. He supported and encouraged me all the way. I’ve worked in public accounting for the last seven years, taking various roles along the way. I started my CPA career here at Cray Kaiser, where I spent five years learning and growing within the firm. After that, I spent two years at a large CPA firm where I gained new experiences and insights. However, at the end, I realized that my heart belongs here at Cray Kaiser, and I’m thrilled to be back.
If you are starting your journey in public accounting, my top piece of advice is to never stop learning. This field is always evolving, so staying updated on industry trends and regulations is essential. Don’t ever hesitate to reach out for mentorship from more experienced colleagues, whether it’s through email, a quick phone call or just stopping by the office. We’ve all been there. We’ve all been beginners and someone helped us along the way. Remember, we wouldn’t be where we are today without that support.
So my life motto is if you’re not falling, you’re not learning. This wise advice comes from my father-in-law who used to share it with his five kids when they were learning how to water ski. I have embraced this motto in my own life and it really resonates with me. For me, it’s a reminder that you have to step out of your comfort zone to truly learn something new. Sometimes that means you might stumble along the way, so it’s important to learn how to fall softly.
My family absolutely loves water sports. We really believe in working hard and playing hard and our vacation reflects that. Almost every trip that we take involves some kind of water sport, water activity. One of our absolute favorites is spending time at the lake house. There, it’s all about skiing, eating delicious food, catching up, and always, and of course, getting some sleep. It’s basically a fun cycle of ski, eat, sleep, and repeat. There’s just something special about being on the water. It’s these moments that create unforgettable memories for our family.
So last summer my family, my husband, and my daughters and I watched Inside Out 2 together. My daughters were very young when we watched the first, the original movie about nine years ago. So it was fun to revisit the story with them now. As parents, we could really appreciate how the sequel beautifully explored the complexity of growing up and the emotional challenges that come with it.
I’m a total bookworm, and I have to say that the story of Edgar Sautel by David Roblesque is definitely one of my favorite this year. I absolutely love this story. The way it explores the bond between Edgar and his dogs is incredibly moving and really pulls at your heartstrings. The writing is beautiful too. The vivid descriptions made me feel like I was right there in the world of Sautel. Plus the dynamics of family relationships along the themes of loyalty and betrayal kept me completely hooked. Overall, it’s just a fantastic book.
CPA | Tax Supervisor -SALT
Beginning January 1, 2025, Illinois legislation requires lessors of tangible personal property (TPP) to charge Illinois sales tax on rental charges. Previously, TPP acquired for leasing purposes in Illinois was taxed to the purchaser, and leases of TPP were not taxed to the rental customer. Under the new law, lessors must apply Illinois sales tax to rental charges based on the sourcing rules outlined in the Illinois Retailer’s Occupation Tax (ROT).
Determining the Appropriate Tax Rate
For leases requiring recurring periodic payments for TPP delivered by the lessor to the customer, each periodic payment is sourced to the primary property location as provided by the lessee. For all other leases, including leases that do not require regular periodic payments, and any lease in which the customer takes possession at the lessor’s place of business, the sales tax rate is determined as provided under the Retailers’ Occupation Tax Act for sales at retail (86 Ill. Adm. Code 270.115). For additional details, see Illinois Informational Bulletin FY 2025-15 (FY 2025-15, Illinois Sales and Use Tax Applies to Leased or Rented Tangible Personal Property).
Exceptions to the New Law
Several exceptions to this legislation remain unchanged :
City of Chicago Exception
The City of Chicago already imposes its own local tax on non-titled use of TPP – the Personal Property Lease Transaction Tax, which increased from 9% to 11% as of January 1, 2025. To prevent double taxation, the state has excluded the City of Chicago from the ROT on leases of TPP. Notably:
Sales Tax Impact on TPP Purchases
Effective January 1, 2025:
Need Assistance
Navigating the complexities of sales and use tax can be challenging. Cray Kaiser is here to help. If you have any questions or need guidance, please contact us or call us at 630-953-4900.
