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MOSS ADAMS LLP

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Address

3700 Old Redwood Hwy Ste 200
Santa Rosa
CA, 95403
United States
Phone
707-527-0800
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Jeff Gutsch

We make it our business, to support yours.

Moss Adams LLP has been in business for more than 104 years. The 11th largest accounting and consulting firm in the United States, Moss Adams is the largest headquartered in the West. With more than 27 locations in Washington, Oregon, California, Arizona, New Mexico, Kansas, and Texas, our staff of over 2,600 includes more than 260 partners, we are ready to serve you.

Our Wine Industry Group
Moss Adams’ commitment to providing business solutions to vineyards and wineries of all sizes starts with the professionals who make up our team. Each specialist has proven business and finance expertise coupled with deep knowledge and experience in the wine industry.

We offer a wide variety of accounting, tax, and business consulting services tailored to meet the specific needs of today's wineries and vineyards.

Find out why more than 300 wine industry clients trust our team, from start-up to maturity. We're more than an just an accounting firm to our clients. We're a trusted advisor.

More than just an accounting firm.


Moss Adams offers a variety of services beyond assurance and tax compliance, including:

  • Budgeting and Forecasting
  • Business Consulting
  • Business Succession
  • Business Valuation
  • CFO services/Ownership Transition
  • Cost Segregation
  • Employee Benefit Plan Audits
  • Estate Planning
  • Family Office Management
  • Human Capital Planning
  • Individual Income Planning
  • Industry Benchmarking and Performance Metrics
  • Insurance Management
  • International Trade Consulting
  • Investment Management
  • IT Consulting
  • Operational Efficiency and Cost Reduction Assessment
  • Outsourced Accounting
  • R&D Tax Studies
  • State and Local Tax Services
  • Strategic Business Planning
  • Succession and Transition Planning
  • Sustainability Reporting
  • Wealth Managment

Visit www.mossadams.com/wine for more information or contact us at wine@mossadams.com to find out how we can assist your organization.

Download(s):

How does Moss Adams Bring More West to business?
How does Moss Adams Bring More West to business?
Firm leaders Chris Schmidt, Dave Follett, and Rebecca Pomering give an overview of why we're redefining our brand and what it means.

News Archive


Fire Relief - Tax Information
08 November, 2017

2017 has been one of the worst years for natural disasters, not only for the state of California, but for the beautiful wine country we all love. Nearly every member of the industry has either been personally or professionally effected. Although the industry is still sorting through insurance claims and assessing what this means to future vintages, the state and federal governments are offering various forms of tax relief to individuals and businesses impacted by the California wildfires.

Property Tax Relief from CA Wildfires

Qualified Disaster Relief Payment Criteria

Contact wine@mossadams.com if you have any questions or would like additional information. 


Top 10 Challenges that Keep Wine Executives Up at Night
27 September, 2017

The rewards and challenges of growing, making, and selling wine can be numerous for grape growers, winery owners, and executives.

At every stage of a winery or vineyard’s business cycle—from planning and financing to improving quality and production to brand management, sales, and distribution—there are different challenges and opportunities. Taking action and creating a comprehensive plan to address these concerns can help mitigate their adverse effects. Here are some key areas to consider:

Operational Review and Strategic Planning

Winery owners and executives who are busy tackling the day-to-day details of running a winery are left with little time and few resources to devote to organizational team structure, management and personnel capabilities, operating and accounting processes and controls. However, identifying and solving organizational problems and their related causes can improve business choices and efficiency, clarify direction, increase focus, and help assess results with an eye to the future.

Benchmarking and Assessing Performance

Determining how a company’s performance stacks up against its competition—or against its own business goals—provides valuable concrete insights into where a company leads and where it falls behind. Timely, relevant data can help vineyards and wineries stay abreast of industry trends, measure key performance indicators and use that information to leverage and improve their operations’ performance.

Brand Management and Competitive Analysis

A company’s brand is its mark of distinction—and what sets it apart from competitors. Establishing and adhering to a brand management strategy that conveys commitment to delivering a great-quality product and a memorable experience is key to building a company’s reputation and a healthy, loyal base of customers and suppliers.

Improving Wine Quality and Planning Production Volume

Wine quality and production volume goals can collide when a company is trying to grow, cut costs or boost cash flow. It’s important to have wine quality and production volume goals that are in sync and—should either need adjusting—work to develop an enhancement program based on a strategic plan and long-term goals.

Systems Assessment and Integration

Technology is changing, rapidly. Many wineries and vineyards are demanding more than their current software programs can deliver. Businesses can reduce worry by breaking down what they’re looking for based on a company’s size, structure and long-term plans. Business intelligence systems, such as Adaptive Insights, can pull and integrate data from existing accounting, sales, and production systems to deliver a 360-degree view of a company’s performance and provide the ability to look forward and estimate grape and barrel requirements, financing, and personnel needs. Employing an integrated system can save costs and help wineries gain a competitive edge.

Securing Financing

To secure financing, owners and executives need to assess financing requirements and identify available sources. Then, they will have to weigh the available options with an understanding of the requirements and the information needed to apply. It’s important to compare interest rates, fees, and other associated costs to determine which financing option offers the best fit for a company’s needs.

Sustainable Business Improvements

Sustainability can drive innovation by introducing new design constraints that help optimize how key resources—energy, water, materials, and waste—are used in wine production. It can also reveal areas where innovation would pay off especially well. A suggested starting place is to assess whether there’s the potential to boost efficiency and cut costs across these resources—and whether the potential gains are worth the investment.

Production Costs and Inventory Management

Wineries and vineyards that know the true cost of growing and making wine, and that track the depletion rates of their wine into the market, are able to make better pricing, promotion, and inventory management decisions. These are all essential to managing working capital, cash flow, and debt service requirements—helping budgets stay on track.

Vineyard Development and Care

Developing and maintaining a vineyard involves an extensive commitment of time and money. Careful planning and familiarity with site assessment, regulatory hurdles and development costs, farming costs, and tax benefits are key. Developing a plan with the company’s end goal in mind—high-quality fruit and wine from a healthy, profitable vineyard—can help businesses maintain their success.

Direct-to-Consumer Sales

Direct-to-consumer (DTC) sales represent the most vital growth opportunity for many wineries. Deregulation, the internet, and evolving technologies afford a promising and sometime confusing landscape of new sales avenues and ways to directly engage prospective wine buyers. As businesses develop or expand a DTC plan, it’s important to keep in mind the scalability of the project, the systems, skills and staffing required.

We’re Here to Help

To learn more about how to develop a plan that proactively addresses the challenges your winery faces, contact your Moss Adams professional.


Active Business Planning and Insights for Wineries and Growers - Available on Demand
05 September, 2017

As a winery or grower, your ability to effectively manage and analyze mission-critical information can mean the difference between the mere survival of your business and effective growth.

During this webcast, we look at one of the latest business planning software applications, Adaptive Insights, and how it can specifically help wineries and growers create a more comprehensive, cost-effective, and continuous planning process.

Whether you’re considering opening a tasting room, changing distribution channels, or acquiring another winery, vineyard, or related business, identifying ways to improve your planning and decisions making processes can help increase profitability—so you can continue to invest in your future.

Watch Now

Speakers

Bill Vyenielo, Senior Business Consultant–Wine Industry, Moss Adams

Bill has been working with clients in the wine industry for more than 25 years, and has been solving operational challenges for vineyard and winery clients since 2006. He works with owners and managers to help them successfully develop and manage their winery operations and build their brands, providing guidance in strategic planning, sales and marketing, and winery and vineyard development. Prior to joining Moss Adams, Bill held executive management positions leading and running estate winery operations ranging from start-ups and turnarounds to highly successful winery businesses. Earlier in his career, he was a lender and appraiser with Farm Credit.

Loren Den Herder, CPA, Consulting Director, Moss Adams

Loren has provided business process and information technology consulting services since 1993. He is a leader of the firm’s Business Solutions Group, a business software development group within Moss Adams Consulting focused on delivering leading-edge technology solutions for clients across a variety of industries. Loren’s experience includes business process improvement design and delivery, systems integration, project management, and Program Management Office (PMO) leadership. His principal background focuses on improving business results through process design, business intelligence (BI) reporting, multi-platform systems integration, and system design. Loren’s business data expertise has provided improved business results for companies across numerous industries and business functions. His projects often include the implementation of management tools to help ensure that process improvement recommendations deliver the expected outcomes. Loren also has experience leading engagements utilizing both traditional and agile delivery methodologies. He has been certified by the Project Management Institute as an Agile Certified Practitioner (ACP). 


Active Business Planning and Insights for Wineries and Growers
29 August, 2017

A Family Winemakers of California Webcast presented by Moss Adams.

As a winery or grower, your ability to effectively manage and analyze mission-critical information can mean the difference between the mere survival of your business and effective growth.

During our next webcast, we’ll look at one of the latest business planning software applications, Adaptive Insights, and how it can specifically help wineries and growers create a more comprehensive, cost-effective, and continuous planning process.

Whether you’re considering opening a tasting room, changing distribution channels, or acquiring another winery, vineyard, or related business, identifying ways to improve your planning and decision making processes can help increase profitability—so you can continue to invest in your future.

We hope you’ll join us.

START TIME: August 31, 2017 9:00 AM PST
DURATION: 1 hour
LOCATION: Online
CONTACT: Kelly Walsh, Moss Adams, 949-221-4000
COST TO ATTEND: Complimentary

REGISTER

Speakers

Bill Vyenielo, Senior Business Consultant–Wine Industry, Moss Adams

Bill has been working with clients in the wine industry for more than 25 years, and has been solving operational challenges for vineyard and winery clients since 2006. He works with owners and managers to help them successfully develop and manage their winery operations and build their brands, providing guidance in strategic planning, sales and marketing, and winery and vineyard development. Prior to joining Moss Adams, Bill held executive management positions leading and running estate winery operations ranging from start-ups and turnarounds to highly successful winery businesses. Earlier in his career, he was a lender and appraiser with Farm Credit.

Loren Den Herder, CPA, Consulting Director, Moss Adams

Loren has provided business process and information technology consulting services since 1993. He is a leader of the firm’s Business Solutions Group, a business software development group within Moss Adams Consulting focused on delivering leading-edge technology solutions for clients across a variety of industries. Loren’s experience includes business process improvement design and delivery, systems integration, project management, and Program Management Office (PMO) leadership. His principal background focuses on improving business results through process design, business intelligence (BI) reporting, multi-platform systems integration, and system design. Loren’s business data expertise has provided improved business results for companies across numerous industries and business functions. His projects often include the implementation of management tools to help ensure that process improvement recommendations deliver the expected outcomes. Loren also has experience leading engagements utilizing both traditional and agile delivery methodologies. He has been certified by the Project Management Institute as an Agile Certified Practitioner (ACP).


[Alert] California State tax law changes
30 June, 2017

New legislation changes how California State taxes are administered and adjudicated starting July 1, 2017. We cover how these changes could affect you and your business in our Alert.

Click here to read the Alert.


Last Days to Participate in Moss Adams Wine Industry Financial Benchmarking Survey
07 June, 2017

These are the final days to be a part of the Moss Adams Wine Industry Financial Benchmarking Survey. This Survey is the most comprehensive wine industry survey that includes both financial and operational benchmarks, plus:

  • You'll recieve a free copy of the final report. Receive it before nonparticipants can purchase it—a $495 value.
  • Get a complimentary personalized benchmark report. Measure your business against validated, reliable industry statistics in an easy-to-understand, personalized report—exclusively for participants.
  • You'll be supporting the work you love. Participation by the wine industry is crucial in compiling significant data all participants can benefit from.

The Survey closes on Thursday, June 15th.

Start the survey: https://www.mossadams.com/industries/wine/wine-industry-surveys/2017-wine-industry-financial-benchmarking-survey

OR

If you've started the survey, contact Kelly Walsh at kelly.walsh@mossadams.com for your personalized link.

Don't miss out!

 


Moss Adams Announces Financial Benchmarking Survey for the Wine Industry
03 April, 2017

Santa Rosa, Calif., April 3, 2017 — Moss Adams LLP, one of the largest accounting and consulting firms in the nation, has announced the opening of the 2017 Wine Industry Financial Benchmarking Survey for input.

The confidential results, available in September, will be a useful tool for West Coast wineries and growers to measure their businesses against industry leaders and prepare their strategies for the years ahead. Survey results will provide insights on a range of topics, from sales and production data to operating and financial metrics by region.

“This survey provides valuable comparative financial information for an industry that has few benchmarks,” said Jeff Gutsch, Wine Industry Group leader at Moss Adams. “Too often this type of information is either difficult to come by or difficult to present in a meaningful way without jeopardizing confidentiality.”

The survey will be open for input from April 3 through April 30. Wineries and vineyards who participate will receive a complimentary copy of the final report along with customized financial benchmarks. Nonparticipants will be able to purchase a copy of the final report for $495.

A copy of the 2013 Wine Industry Financial Benchmarking Survey can be found at www.mossadams.com/winesurvey.

For more information, please contact: William Vyenielo | Sr. Business Consultant | (707) 508-3821

Sponsors

Moss Adams LLP is one of the largest accounting, tax, and consulting services firm in the nation. Moss Adams is the business partner of choice for more than 300 wineries and vineyards. Our Santa Rosa and Napa offices serve as the headquarters of the firm’s wine industry practice.

American AgCredit was founded in 1916 and is the 6th largest Farm Credit lending cooperative in the U.S. with assets in excess of $7.3 billion, and more than 18% of that portfolio in wine grapes and wineries. As part of the Farm Credit System, American AgCredit specializes in providing financial services to farmers and ranchers throughout California, Nevada, Kansas, Oklahoma, Colorado, and Northern New Mexico – as well as to capital markets and agribusiness operators across the country.

Heffernan Insurance Brokers offers tailored Risk Management strategies that guide CFO’s on how to identify how much risk their company should transfer and/or retain. Cutting edge strategies are explored during a Proprietary Risk Management Audit process that CFO’s are saying is not only unprecedented, but a pathway to helping clients increase their pretax profits.

Turrentine Brokerage is the leading provider to growers, wineries and financiers in the brokering of winegrapes from all California regions and wines in bulk from California and around the world. A reputable source for exclusive and superior market information with over 40 years of service and the industry’s most experienced team of brokers and analysts.


2016 Year-End Tax Planning Guide
08 December, 2016

As the season for year-end tax planning approaches, more of the same means that taxpayers will, at the very least, know what to expect. While there’s been little legislative change this year, recent IRS proposal regulation 2704 could have significant impact for individuals and business owners, if adopted. That said, sound tax planning is essential to effective wealth management, and in today’s tax environment you’ll still want to consider a variety of strategies so you’re well-positioned regardless of tax rule outcomes.

HOW TO USE THIS GUIDE

We encourage you to evaluate your options and outline tax planning strategies with your Moss Adams professional sooner rather than later. While it can be tempting to put off thinking about taxes until the last minute, some of the tactics discussed here take time to implement, and your window of opportunity grows smaller as the tax year-end approaches.

In addition to referencing this guide during tax planning season, it can also be a helpful year-round tool. Staying actively involved in these and other underlying areas of tax planning will keep you in a position to preserve and create longer-term wealth for yourself and your family.

Finally, the strategies discussed in this guide are based on current federal tax law. State taxes should also be considered since the tax laws of many states differ from federal tax laws. In light of the evolving tax code, we suggest you visit www.mossadams.com to stay abreast of any changes.

Read the full guide on our website or download the pdf.

CONTACT US

(800) 243-4936 | taxplanning@mossadams.com


California extends tax increase for individuals through 2030
09 November, 2016

Description: California voters approved the extension of the temporary tax increase on individuals, which was due to expire in 2018. Proposition 55:

  • Extends the tax rates instituted by Proposition 30 through 2030
  • Didn’t extend the temporary sales tax rate increase that expires in 2017

Our Alert highlights the current margin tax rates for single and joint filers as well as heads of households. 

 

Read more here: http://www.mossadams.com/articles/2016/november/california-voters-extend-individual-tax-increase


High-Tech Sustainability: Wineries Turn to High-Tech Solutions for Sustainable Business
03 October, 2016

In the wine business, a brand’s reputation is often tied to its history—which you can only create if you’re still in business in the years and decades to come. That means doing all you can today to make your business sustainable for the long term.

That point is especially relevant for the 96 percent of US wineries that produce fewer than 50,000 cases per year while contending with distributor consolidation, labor shortages, evolving consumer preferences, and the increasing scarcity of water and other critical resources. There’s a clear theme to how many wineries and vineyards are making themselves more efficient: technology.

MANAGING YOUR ENVIRONMENTAL IMPACT

US consumers are increasingly spending on sustainably produced products and the companies that make them. This movement continues to gain momentum, and its effect is compounded when you add the viral nature of product success today. But marketing aside, ecologically minded winery businesses also strive to conserve resources and be more cost-efficient on principle.

Water

Many wineries are performing water-use audits to analyze how many gallons they consume and where, then using the results to find new ways to reduce, reuse, and recycle the water. Some are installing catchment systems so rainwater can be recirculated, treated, and used; others are tapping treated wastewater from municipalities. Though not potable, this water can safely be used for vineyard and landscape irrigation and other uses, reducing potable water consumption.

Two other new technology solutions for water management and sanitization: the Tom Beard Company’s barrel-washing equipment and BlueMorph’s UVC technology.

The Tom Beard Company’s barrel-washing units are specially designed to recycle and reuse water in the last wash cycles. Using them, Jackson Family Wines in Sonoma County reduced its consumption of water for washing barrels by two-thirds and trimmed the amount of time required to wash barrels by about 40 percent.

Jackson Family and other wineries have also cut water use by more than 20 percent in the tank-cleaning process using BlueMorph’s technology, which sterilizes tank interiors with a specific wavelength of ultraviolet light instead of chemical sanitizers and water. Per Bluemorph, the savings can be over 80 percent if fully adopted and implemented. Trials have proven this technology is significantly more effective at sanitizing stainless steel tanks than traditional cleaning and sanitizing methods. In addition to eliminating microorganisms that spoil wine, the BlueMorph’s UV technology can also:

  • Reduce wineries’ heating bills by approximately 70 percent
  • Eliminate the need for chemicals in the sterilization process
  • Remove the scalding hazard posed by steam and hot water to employees
  • Reduce the time and labor required to wash a tank by about 75 percent (three minutes for a 3,000-gallon tank or 30 minutes for a 25,000-gallon tank)

Wineries are often surprised to learn that these technologies may not be cost-prohibitive. While the results depend on a winery’s size and winemaking processes, the savings in water, labor, time, chemicals, and energy can offset the cost of this equipment in as little as one year and generally less than three.

Pesticides

Another environmental issue is the use of pesticides. New technology is changing the story here too. One promising example is called thermal plant treatment (TPT) from AgroThermal Systems.

The initial idea was to blow hot air into the leaf canopy to control small insects and mildew with heat rather than with pesticides and fungicides. Trials in Oregon, New Zealand, and Napa, Sonoma, and Monterey Counties showed a significant decrease in the need for sprays but also multiple unexpected benefits among heat-treated blocks:

  • A 23 percent higher yield than control blocks
  • Repeatedly higher rankings in blind taste tests
  • Healthier leaf canopies and a more uniform fruit set (especially in cooler areas)
  • A 40 percent increase in the number of berries, a 40 percent increase in bunch weight, and one to two additional tons per acre in yield

How it works: Rather than applying a pesticide or fungicide spray every 10 to 14 days, a trailered TPT unit emits directed blasts of hot air (200 to 300 degrees Fahrenheit), raising the temperature under the leaf canopy by 12 to 25 degrees for about 15 seconds—enough to kill most small insects, insect eggs, and mildew. Growers can use TPT throughout the growing season to encourage more uniform bud break and control insects and disease. If the goal is a more uniform fruit set, growers can make two or three passes during bloom.

The resulting increase in tonnage can offset the cost of TPT equipment within one year. Though TPT requires less chemicals and water than pesticide, it does require burning propane to generate the heat, so there are some environmental trade-offs.

REDUCING COSTS THROUGH BIG DATA

Pinpointing where resources are needed is an important part of efficient, sustainable business. In addition to neutron probes and other devices that measure the presence of available water in the soil, newer technologies are helping farmers gauge the health and resource requirements of their plants on a practically molecular level.

For water management, technology by Fruition Sciences enables growers to measure the water demands of individual vines, while technology developed by Oregon-based Tule Technologies provides evapotranspiration data on acres of plantings at once. Vineyards today can use GPS-enabled technology to generate maps containing layer upon layer of data aggregating soil type, mineral content, drainage patterns, sun angle, and other factors. This helps them manage resources as well as design new, more drought-tolerant vineyards that produce higher-quality grapes and better yields.

Mobile farm management and farm data record applications such as the cloud-based iCropTrak are making it easier for growers to document and monitor all aspects of their farming operations. Many vineyards are also establishing weather monitoring stations with expanded capabilities to record minute-to-minute data on temperature, humidity, wind direction, and speed. These stations provide data directly back to scouts and field managers through smartphones and other wireless technology to announce frost warnings, system failures, and required adjustments. The data reveals important year-to-year trends, the effects of variation in soil and climate on the timing of key phenological stages, such as bud break, bloom, and harvest.

Aerial technology (drones included) provide growers with a bird’s-eye view of their vineyards. These show uniformity of growth, detect areas under stress from disease, and help assess when a picking crew might have the next load of grapes ready to send to the winery. Colorful NDVI (normalized difference vegetation index) maps, which show areas of high and low vegetation density, provide visual cues on how to improve uniformity of growth within a vineyard and how to harvest vineyard areas for optimal grape quality.

Some of these technologies even collect multiple types of data in a single pass through a field, which cuts costs, reduces wear on equipment, and lessens soil compaction.

SAVINGS THROUGH AUTOMATION

Automating work can help mitigate the effects of labor shortages. Used in vineyards and wineries, optical sorting equipment at harvest can remove material other than grapes (MOG) and reject unripe, sunburned, and overripe grapes based on color sensitivity criteria you can calibrate.

Typically, this technology (which starts around $75,000) can sort five to 10 tons an hour compared with a team of 10–12 workers, who can sort about a ton per hour. Winemakers report that the quality of the sorted fruit is often more uniform—and because this technology allows wineries to get more work done in a day, they can react more quickly to sudden changes in the weather and get the fruit safely “into the barn.” As a second benefit, employees can go home at a more reasonable time, so they’re more rested, less prone to injuries and mistakes, and better at making decisions. The ultimate result: a better-quality wine.

Marketing and sales functions are another focal point for automation. Now that direct-to-customer sales are a serious option in 43 states, wineries are upgrading their IT systems and other technologies. As they transition from a paper-based to a digital world, wineries are capturing orders, interacting with customers, and monitoring real-time inventory levels with the data streaming from mobile technologies. This brings greater efficiencies by reducing the time and cost of materials required to place and process orders and eliminating many of the manual steps winery employees used to do by hand. Better still, electronic orders may reduce the customer wait time between order and delivery, freeing up employees to perform more fulfilling, customer-facing work.

Last, new business intelligence software, such as Adaptive Insights, is shedding light on wineries’ year-to-year trends and allowing them to quickly reforecast projections. This can be invaluable when wineries are faced with a sudden change in the economy, a strike, or an unexpected weather event affecting the crop. By uploading current, budgeted, and historic data into the platform, the visual representations of the data can help winegrowers and managers make faster, better, more informed decisions.

STAY AHEAD OF THE CURVE

The technology wineries are using today can seem like science fiction to an outsider. But more and more, our climate—both business and environmental—is making it such that the wineries using this futuristic technology today are indeed the wineries that will thrive long into the future.

Disclaimer: This article does not constitute an endorsement of Moss Adams LLP by the companies referenced herein, or an endorsement of such companies by Moss Adams LLP.  Companies and products are described based on publicly available information and other user information.


Bill Vyenielo has worked with wine industry clients for more than 25 years. He helps owners and managers successfully develop and manage their winery operations and build their brands, providing guidance on strategic planning, sales and marketing, and winery and vineyard development. He can be reached at his office at (707) 508-3821, by cell at (707) 889-0396, or by e-mail at william.vyenielo@mossadams.com.


The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Moss Adams LLP. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.


Green Solutions for Wine and Agribusiness Webcast
27 April, 2016

US consumers are increasingly favoring sustainable products and are supporting the companies that make them. In addition to monetary benefits, sustainability is also becoming a matter of business survival. Generation after generation, it’s important that growers and producers take meticulous care not to deplete their soil, water, and other resources.

Attend this webcast to learn about the latest technology and business practices being used in wine and agribusiness operations to promote sustainability, conservation and longevity.

Time: May 5, 2016 10:00 AM PST

Cost to Attend: Complimentary

SPEAKERS

Jeff Dieleman, CPA, Partner, Moss Adams LLP 

Jeff has more than 20 years of experience providing auditing, accounting, and advisory services to clients in the food processing and agriculture industry. Jeff's experience with internal controls provides him the opportunity to serve as a resource for companies looking to reduce their exposure to fraud and embezzlement. He is currently completing his certification for the CFE (Certified Fraud Examiner) designation.

Register


Tax Opportunities for Wineries and Vineyards
30 March, 2016

As the tax rates on top earners continue to rise, many winery and vineyard owners are looking for new ways to reduce what they’re required to pay in taxes.

The good news is there are many tax planning opportunities for wine businesses at the state and federal levels, and if you’re willing to invest some time into researching and implementing them, you can significantly reduce your overall exposure. Let’s look at a few of the ways wineries and vineyards can reduce what they owe, both early on and as they continue to grow.

ENTITY STRUCTURE PLANNING

Good structuring is critical whether you’re starting a wine business from scratch or purchasing an existing business—not only from a tax perspective but also from a legal and business perspective. The entity type you choose depends heavily on your long-term goals for the business, and each comes with pros and cons.

On the tax side, C corporation structures are less common due to the double taxation that occurs. Limited liability companies (LLCs) have traditionally been the most popular vehicle, but S corporations are gaining ground as a result of the Affordable Care Act. Unlike an LLC, the flow-through income from an S corporation to an active shareholder isn’t considered self-employment income; as a result, it isn’t subject to self-employment tax or the additional 0.9 percent Medicare tax that went into effect in 2013.

On the other hand, LLCs can provide more flexibility to allocate losses to those members that funded the business, allowing them to use those allocated losses to offset their other taxable income. This can be a great planning tool at the inception of a vineyard or winery business, since in its first five years it may generate only losses as its vineyards come into production and its wine is aged.

As an example, take a winery owned by two partners, and say partner A has contributed 100 percent of the capital. If the winery is an LLC and the operating agreement is structured accordingly, all its losses can be allocated to partner A. Alternatively, if the winery is an S corporation, its losses are allocated according to the number of shares owned by each shareholder, regardless of who funded the business. So if the two are equal owners, shareholder B will be allocated 50 percent of the losses, and those losses would be deductible only to the extent the shareholder has basis.

Above all, consider your end goals: Do you plan to transition your wine business to a second or third generation? Or do you plan to grow it and sell it in a few years? Estate planning may be simpler with an LLC, but another entity type may be better suited to an outside sale or the transfer of an existing license. Spend time with your attorney and CPA well in advance of formation to determine which structure works best for your long-range plans and tax exposure.

ACCOUNTING METHODS

At the most fundamental level of tax planning, your overall accounting method—cash or accrual—is important.

Vineyards, as farming operations, are generally permitted to use the cash method regardless of size if the activity is held by a sole proprietor or through a flow-through entity. This assumes the vineyard activity doesn’t meet the tax shelter rules defined in Internal Revenue Code Section 448. The most common situation that would prohibit a vineyard from using the cash method is when more than 35 percent of the losses from the activity are allocated to “limited partners” or “limited entrepreneurs.” Additionally, if a vineyard is held within a C corporation, certain revenue thresholds could preclude the vineyard from using the cash method. The standard threshold for C corporations is $1 million; a higher $25 million threshold applies if the entity qualifies as a family corporation.

Wineries generally must use the accrual method due to the creation of inventory, although there’s a small-taxpayer exception that allows some to use the cash method. To meet this requirement, the winery’s average annual gross receipts for the prior three tax years must be less than $1 million. If a winery can meet the small-taxpayer exception, it may want to consider using the cash method as well as accounting for inventories in accordance with Revenue Procedure 2001-10. This allows a winery to treat as inventory only raw materials (grapes, glass, corks, purchased bulk wine, etc.). All other costs, such as labor and custom crush fees, are expensed as they’re paid.

The cash and accrual methods each have their benefits (depending again on your long-term goals), but cash is generally favored. From a vineyard perspective, your ability to use the cash method provides you the option to either capitalize or expense preproductive costs on your vineyard. These are the costs incurred from the time you plant a new vine until you’re able to harvest a commercially viable crop (typically three crop years). The cash method allows these costs to be deducted in the year they’re paid, reducing your taxable income right away. One downside is that you’re required to use slower depreciation methods and longer recovery periods under the alternative depreciation system. Second, once you’ve elected to expense your preproductive costs, the election applies to all future vineyard and permanent crop development activities in which you incur preproductive costs, regardless of the entity that holds it. Under the accrual method, these costs must be capitalized (similar to generally accepted accounting principles), which provides no immediate benefit but permits faster depreciation methods and shorter recovery periods.

If you have a combined vineyard and winery operation in a single entity and the vineyard is eligible to use the cash method, then you have some additional tax planning opportunities to consider. The first is the ability to deduct all estate-farming costs in the year paid rather than capitalizing them as a component of inventory. Estate-farming expenses aren’t deducted until the inventory is ultimately sold. Depending on the time frame in which a taxpayer ages and ultimately sells its inventory, deducting these costs up front could accelerate the deduction by one to four or more years.

If you’ve examined your overall accounting method and determined the other would be more advantageous, you aren’t out of luck: You can choose to change your accounting method by filing Form 3115 with the IRS. Various requirements apply depending on the type of change, so work with your CPA to determine whether a change is feasible and what you need to do to execute it.

FARM INCOME AVERAGING

Qualifying taxpayers may elect to have their current-year farming income (in whole or in part) spread evenly over the prior three tax years. This can mitigate the tax impact of higher-earning years, ideally keeping taxpayers out of the top tax bracket in the current year. This is especially helpful now that top individual tax rates are higher than they’ve been in the past.

Farm income averaging can be challenging for taxpayers with multiple activities—for example, a combined winery and vineyard operation. To take advantage of this strategy, you need to be able to determine the exact amount of income that’s attributable to farming and therefore eligible for averaging.

IC-DISCS

As the international markets for US-produced wines continue to grow, many wineries have expanded their sales overseas. If you export your products, you may benefit from forming an IC-DISC—that is, an interest-charge domestic international sales corporation—which yields permanent tax savings on export income.

IC-DISCs are paper organizations that aren’t taxed at the federal level. They have neither employees nor offices; rather, they exist solely to collect a sales commission from the exporting business. Once they’ve collected this commission on the exporter’s international sales, they distribute the income back to their shareholders (generally the same individuals or entities that own the exporter) in the form of qualified dividends. Because qualified dividends are taxed at a lower rate than ordinary income, IC-DISCs yield a tax rate reduction of approximately 16 percent at the top bracket.

Forming and maintaining an IC-DISC does involve additional paperwork and the involvement of attorneys and other advisors, so you’ll need to put some advance planning into this strategy if you think your business could benefit from it.

STATE TAX CONSIDERATIONS

At the state level, there are still more tax planning opportunities available to wineries and vineyards that know where to look.

California offers a partial sales and use tax exemption on the purchase of equipment used in manufacturing, which includes wineries’ crushers, fermentation tanks, bottle washers, laboratory testing equipment, and more. It reduces the tax rate on these purchases to approximately 3.3 percent compared with the state’s standard 7.5 percent rate. So if you spend $200,000 on qualified equipment, you’ll see a tax savings of $8,400 using the partial exemption. California also permits faster depreciation (five years instead of 10) on vines replaced due to Phylloxera (after 1991) or Pierce’s disease (after 1996).

On the other side of the coin, states have become increasingly aggressive—and creative—about how they tax wine businesses. Solicitation of sales, for example, is generally shielded from state income tax under Public Law 86-272, but states have created franchise taxes, margin taxes, and gross receipts taxes that work around this law.

To plan properly for these state taxes, you need to understand what activities may be taxable in each state where you have operations, then work with a CPA to reduce what you owe. On the planning side, understand what you’re getting into from a tax perspective before you commence operations in a new state, especially if your tax liability could tip the balance one way or another. Note that filing in another state isn’t necessarily a negative because California is such a high-taxing jurisdiction. In some situations, it may make sense to create a filing obligation in another state, pulling the income out of California and potentially reducing your overall tax liability.

WE'RE HERE TO HELP

The most important takeaway is to start planning early so you can adequately account for any changes you want to make or opportunities you want to take advantage of. While many of the opportunities outlined above are limited to either wineries or vineyards, integrated winery-and-vineyard operations are often in a position to take advantage of both. Entity structure and choice of accounting method are fundamental options that will impact your tax exposure, so invest time up front on those decisions, particularly in advance of a transaction or the formation of a new business entity.

Evaluating your tax strategy now is important, but just as important is reevaluating it occasionally. If you’d like to understand how these tax opportunities could affect your business, contact your Moss Adams professional. We can help develop a strategy, implement it properly, and prepare for tax law changes and new opportunities.

A version of this article previously appeared in Vineyard & Winery Management Magazine.


by Michael Ricioli, Partner, Wine Practice

Michael Ricioli has been in public accounting since 2000. He provides wineries and other agricultural businesses with tax services related to complex, consolidated, and multistate tax returns; quarterly tax projection calculations; federal and state tax credits; and FAS 109 deferred tax calculations. He can be reached at (707) 535-4152 or michael.ricioli@mossadams.com.


The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Moss Adams LLP. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.

- See more at: http://www.mossadams.com/articles/2016/march/tax-opportunities-for-wineries-and-vineyards#sthash.rMz2heZz.dpuf


Ted Grafe Joins Moss Adams LLP
23 February, 2016

Ted Grafe, a business development executive, has joined Moss Adams LLP. In this role, he will be assisting companies across a wide-range of industries, including the wine industry, helping them address their unique challenges by pairing them with the specialized expertise of Moss Adams professionals. Grafe has more than 10 years of experience in the business serving the North Bay, with an emphasis and passion for the wine, craft beer and consumer products industries. Ted has many strong connections within the wine and craft beverage industries, including affiliations with the Wine Symposium Group, Sonoma State University’s Wine Business Institute, Sonoma County Vintners, Napa Valley Grapegrowers, California Craft Brewers Association, and Sonoma County Craft Beer.


Plan for April 15 with the Moss Adams Tax Guide
15 January, 2016

 

While it's tempting to put off thinking about taxes until the last minute, there's still time to significantly reduce your 2015 tax liability. In our annual tax planning guide, we cover these opportunities as well as developments to be aware of going into 2016 in two sections-one for individuals and the other for businesses and their owners.

 

Keep in mind that some tactics take time to implement and your window of opportunity grows smaller with each passing day. That's why we've included a checklist of tax planning opportunities in our guide. Be sure to discuss and evaluate these options-sooner rather than later-with your tax advisor before implementing a strategy.

 

For a detailed look at tactics, download our tax guide. DOWNLOAD

In the meantime here's a general list of topics covered:

 

• Personal taxes, including ordinary income tax, alternative minimum tax, capital gains tax, and the net investment income tax and Medicare surtax

 

• College education, retirement, estate, and gift planning

 

• Charitable giving

 

• Health care reform

 

• Business tax credits and incentives

 

• Tangible property regulations

 

• Health care reform and employee benefits

 

• International tax issues

 

• Ownership transition and exit planning

 

• Sales and acquisitions

 

The tax, assurance, and financial planning professionals at Moss Adams LLP can help you stay current and understand how these new changes impact you, your business, your investments, and your estate and financial plans. We can also help coordinate a tax strategy for your long-term financial goals.

 

The strategies discussed in the guide are based on current tax law as of this writing. In light of the evolving tax code and still-to-come IRS guidance on several key tax topics, we suggest you visit ourWeb siteto stay abreast of any changes that could affect you, your family, and your business.

 

Here's to a fantastic New Year and potential cost savings.

 


When It Comes to Year-End Charitable Giving, Consider Your Options
22 December, 2015

by Kathryn Garrison, Senior Financial Advisor, Moss Adams Wealth Advisors LLC

As we begin wrapping up the year, it’s time to think about year-end financial considerations. For many of us—whether it’s for philanthropic reasons or tax planning reasons (and it’s likely both)—one of those is charitable giving.

CHOOSING A GIFTING VEHICLE

If you tend to simply write checks at the end of the year, there may be a more financially efficient way for you to give. Let’s look at a few of the most common.

Gifting Stock

Gifts of appreciated stock are an easy way to avoid the capital gains tax you’d pay on an appreciated asset upon its sale while receiving a charitable deduction for the full value of the stock. Most charities do accept securities, and you can also use a donor-advised fund to give to those that aren’t able to accept stock.

Another strategy is to first sell stock that has decreased in value—generating a tax loss you can use to offset capital gains income—then gift the sale proceeds, which further results in a charitable deduction.

Donor-Advised Funds

A donor-advised fund can be useful if you’re looking to generate a charitable deduction in 2015 but aren’t sure where you want your money to go. These funds allow you to gift cash, appreciated securities, and other appreciated assets to the charitable organization that runs the donor-advised fund—such as Schwab Charitable or Fidelity Charitable—which in turn gifts the value of the assets to the charitable organization of your choice. You can also give through a community foundation that acts as a donor-advised fund. Once you’ve had time to think about where you want the funds to go, you can direct the money to the recipient you choose.

Choosing to gift through a donor-advised fund doesn’t mean you need to forgo the convenience of checkbook giving, especially if you rely on checks to give to your child’s school, auctions and gala dinners, or other events. For these kinds of gifts, you can direct that checks be sent from your donor-advised fund. Note, however, that you can’t use a donor-advised fund to pay off a previous pledge.

Donor-advised funds can also be a way to involve your children or other family members in charitable giving, since multiple authorized users are permitted to direct where gifts go. Additionally, they can offer anonymity in your gifting if you’d like to keep your giving information private.

Charitable Trusts

It’s getting late in the year to consider more complex gifting vehicles such as charitable trusts, but the current low interest rate environment will continue to be beneficial for charitable lead trusts into 2016.

Charitable lead trusts allow you to transfer assets that either produce income or are expected to experience strong growth to your heirs while providing a gift to a charity in the form of income during the term of the trust. You get a tax deduction for the value of the income stream going to charity—so the lower the discount rate, the greater your tax deduction. The assets remaining in the trust can be left to your heirs. The value of your gift to your heirs is the fair market value less the gift to charity, which means the charitable gift completely offsets the gift going to your heirs, making it effectively $0 for estate and gift tax purposes. 

Charitable remainder trusts are the reverse of charitable lead trusts. The income beneficiary can be you or someone else, and whatever remains in the trust at the end of the trust term goes to charity. These trusts aren’t as attractive in low interest rate environments, but they may be worth considering for the future depending on your charitable goals and your income needs.

Even if you aren’t able to create a charitable trust to meet your giving needs in 2015, you may want to begin the process now if you’re interested in having one for future tax years.

ADDITIONAL RESOURCES

Our 2015 year-end tax planning guide provides a wealth of information on charitable giving strategies, including how they may impact your estate and retirement planning, alternative minimum tax liability, and lifetime gift exclusion. It also provides key information on other ways you can reduce your tax liability in 2015 and beyond. See our related tax planning infographic for a few of the most important topics individuals should consider.

As the year winds down, take some time to read through the opportunities in the 2015 tax guide and talk with your advisor about options that may be a good fit for you, your family, and your business.

LOOKING AHEAD

While you may be focused on finalizing your charitable gifts for 2015, remember that it’s not too early to start thinking about how you can make your 2016 giving as efficient and effective as possible. As you make your final 2015 gifts, take advantage of the opportunity to review your giving methods, habits, and goals, since these will provide insight you can apply toward your 2016 giving strategy.

Contact us to learn more about how you make the most of your charitable giving and which solutions may work best for your personal financial situation and goals.


Kathryn Garrison advises organizations on their investment strategies and prepares personalized financial plans and wealth strategies for executives and high net worth individuals. She can be reached at (206) 302-6752 or kathryn.garrison@mossadams.com.


The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Moss Adams LLP. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.

- See more at: http://www.mossadams.com/articles/2015/december/year-end-charitable-giving#sthash.BY0Aioue.dpuf


To Transition Your Business to the Next Generation, Look Closely at Your Buy-Sell and Life Insurance
08 September, 2015

Buy-sell agreements are one of the most important elements in the planning for any business’s long-term success. But for family-owned businesses—common in agribusiness, food, wine, and forest products—they play an even more critical role in the successful transition of the business from one generation to the next.

WHY CREATE A BUY-SELL AGREEMENT?

Buy-sell agreements control the ownership of a business when a triggering event occurs. This may be an owner’s death, retirement, or departure from the company, but death is the most common, particularly for family businesses, whose owners are unlikely to leave otherwise. This being the case, buy-sell agreements play a critical role in estate and succession planning.

Whoever inherits a business owner’s estate—be it a spouse, heir, or other potential beneficiary—may also inherit the deceased’s ownership interests. For many businesses, that’s not the desired outcome. A survivor who inherits a business may have no desire to be involved; meanwhile, the remaining owners may find themselves with a new and potentially unwanted business partner. This is where giving careful attention to your buy-sell agreement and related documents becomes an important tool for following through on your business and personal wishes.

FUNDING YOUR BUY-SELL AGREEMENT

It’s all well and good to create a buy-sell agreement that details how ownership should change upon an owner’s departure or death, but unless that buy-sell agreement is funded, it’s unlikely it’ll be executed successfully. A farming operation owned by two brothers may have a buy-sell agreement stating that if one dies, ownership goes to the other, but how will the surviving brother buy out the deceased brother’s shares? This is a common trouble spot in buy-sell agreements.

There are a number of ways to fund a buy-sell agreement, each with its own pros and cons:

  • Create a sinking fund. A business diverts a portion of its revenue into a savings account so liquid assets are available to buy the shares of an owner who leaves the business or passes away. This provides liquidity when it’s needed, but it diverts a substantial amount of revenue away from the business’s operations, potentially hampering growth.
  • Promissory note. Ownership interests pass into the deceased’s estate, and the business or surviving owner purchases the deceased owner’s share from the estate through installment payments, which should include interest. It’s easier to manage financially, but the business must record a liability on its books, and the estate must wait a long time to be paid in full. Furthermore, there’s no clean break between the business and the deceased’s estate.
  • Use life insurance. If death is the triggering event, life insurance provides the cash to fund a buyout when it’s needed. However, the feasibility of this funding mechanism is dependent on the insurability of the owners. Using life insurance to fund a buy-sell agreement is a simple and elegant solution, but it may not be right for every business or owner.

Each owner should take the time to do a careful analysis to determine the appropriate funding method for his or her business.

FUNDING A BUY-SELL WITH LIFE INSURANCE

Type

There are different types of life insurance, and one size doesn’t fit all. Owners and businesses must look to their desired goals in determining what type of insurance is most appropriate for them.

Will the owners retire, or will be the business be sold to a third party in the future? If either of these situations is a possibility, then term insurance may be the best option. There’s a specified period during which the need for insurance to fund a buyout exists. However, if the owner plans on participating in the business indefinitely—with no intention of ever retiring—then a permanent policy may be more appropriate. In this scenario, there’s no specific time frame, so the insurance need may continue until death.

Structure

When using life insurance to fund a buy-sell agreement, the two common arrangements are cross-purchase and entity-owned arrangements. Each arrangement defines how the life insurance will be owned and how the buyout will occur.

In cross-purchase arrangements, every owner personally owns a life insurance policy on each other owner and is the beneficiary of that policy. To return to our example, take a farming operation owned by two brothers (A and B). In a cross-purchase arrangement, A purchases a policy on B and B purchases a policy on A. This works well with two owners, but what happens when A brings his daughter, C, into the business? Now we have three owners, and if we continue in the same mode, A must own policies on both B and C, B must own policies on both A and C, and C must own policies on both A and B. That’s a total of six policies. As you can see, the number of policies increases rapidly as more owners are added.

The alternative is to have the business be the owner and beneficiary of life insurance policies on each owner. This reduces the number of policies to three: one each on A, B, and C. When one owner dies, the business receives the death benefit, funding the purchase of the deceased’s shares and distributing the interests across the remaining owners. In addition to reducing the number of policies, this means there’s only one transaction to structure when an owner dies, since remaining owners don’t personally have to buy their portion from the deceased’s estate.

How you choose to structure your life insurance policies carries tax implications as well. In a cross-purchase arrangement, the business generally distributes money to owners to cover premiums. Owners usually recognize these distributions as additional income. In other words, it’s more money that can be taxed—and that may be especially undesirable if premiums vary substantially between owners.

Say owner B is elderly and in poor health. Owners A and C will have to recognize a larger amount of income to cover their policy premiums on B, potentially bumping up their tax rate. On the other hand, if the business owns the life insurance policies, the business pays the premiums directly to the insurance company. There’s no individual liability for the premiums, and the disparity of premium amounts is equally borne by the owners.

PUTTING IT ALL TOGETHER: SUCCESSION PLANNING

Now that you’ve got a handle on how life insurance funds a buy-sell agreement, let’s look at an example of how it can be used to put a succession plan into action.

Using our original example, brothers A and B own a dairy farm valued at $10 million. Both have children who are involved in the business and own small minority interests, but neither of their spouses is part of the business. Unless they’ve planned otherwise, at either’s death, their share of the business will fall to their respective spouses. Now assume that A passes. His wife is now an equal owner of the dairy with B. Unless B created some kind of funding mechanism to buy out A’s wife, he must now continue to operate the business with someone who has no knowledge of farming.

Instead, let’s say that brothers A and B set up a buy-sell agreement so the dairy owns insurance on all owners. At A’s death, the dairy receives the death benefit proceeds (generally free from income tax). The dairy uses those proceeds to purchase A’s interests from A’s wife. Consequently, A’s shares are now proportionally distributed among the remaining owners. A’s wife now has liquid assets to maintain her lifestyle, and B is no longer equal partners with someone who is uninvolved in the dairy business.

Naturally, how you structure your buy-sell agreement and insurance policies should depend on your long-term goals for your business. But with careful planning, an understanding of your options, and a bit of teamwork on behalf of your business and personal advisors, you’ll be able to execute a strategy that aligns with your goals.

REVIEW YOUR PLAN REGULARLY

Even the best-laid succession plans, buy-sell arrangements, and insurance policies can fail if they’re not revisited regularly.

As your business grows, ownership interests evolve, long-term goals shift, and the value of your business continues to increase. The business value you’ve based your buy-sell funding on can become outdated quickly, and with it, the amount you’ll need to buy out a departing owner. In addition, it’s important to consistently review your insurance. Life insurance should be handled like any other investment: The timing of premium payments, term periods, and policy performance can all have an effect on the success of your strategy.

This brings us to another piece of the puzzle: valuations. Unless you know the value of your business, you can’t know how much it’ll cost to buy out a deceased owner’s share. There are many ways to value a business, so be explicit in your buy-sell agreement. Having a clear, definitive, and independent valuation method that is appropriate to your business will help reduce conflicts and keep the buyout process moving forward.

To keep your business valuation, buy-sell agreement, life insurance policies, and estate planning documents working in harmony, review them:

  • At least every five years, though insurance should be reviewed annually
  • When there’s a relevant regulatory change
  • When there’s a life-changing event, such as a marriage, children, divorce, or change of ownership
  • When there’s a significant change in the value of your business

Most important, work with all of your advisors—together—to create and review your buy-sell agreement, estate plan, and other related documents. Without a view into what each advisor is doing, it’s unlikely they’ll all align toward your ultimate goals. As a best practice, always review your buy-sell agreement, life insurance, and estate plan in tandem.

WE'RE HERE TO HELP

To learn more about buy-sell arrangements, life insurance, and how they can work in your estate and succession plan, contact your Moss Adams insurance specialist or accounting professional. We can help you gain perspective on your long-term goals and align your plans, putting you on track to achieve them smoothly and effectively.


Aimee Kwain is an insurance and estate planning advisor. A practicing attorney since 1999, Aimee incorporates her legal background in the life insurance industry into her work reviewing and consulting on life insurance and estate planning for high-net-worth families. Aimee can be reached at (310) 295-3727 or aimee.kwain@mossadams.com.


The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Moss Adams LLP. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.

- See more at: http://www.mossadams.com/articles/2015/august/buy-sell-agreements-for-agribusiness#sthash.vq1IF7ht.dpuf


In this Month's Wine Business Monthly: Assess Your Exit Readiness
04 August, 2015

Succession Planning: Are You Ready for Your Exit? 

Maybe you’re already making plans for your retirement, or maybe it hasn’t even crossed your mind. Either way, both your financial success and that of your business depends on careful planning long before it’s time to hand over the keys—and that’s the crux of succession planning.

In this article for Wine Business Monthly, we give some simple questions you can ask yourself now to gauge your exit readiness and take the first steps.

Read the article here!


Making Wine? A California Incentive for Manufacturers Could Lighten Your Tax Load
16 June, 2015

by Mike Ricioli, Partner, Wineries & Vineyards Practice, and Alex Tran, Manager, State & Local Tax Services

 

Many California wineries are ramping up their production volumes to near prerecession levels. As a result, they may be unknowingly increasing their tax liabilities—but lucky enough, California now provides a partial sales and use tax exemption that could help offset the increase.

The partial exemption is available to businesses engaged in R&D or qualified manufacturing activities. That may not sound quite like your winery, but on a closer look it applies to many of the activities wineries regularly engage in.

The partial exemption became effective July 1, 2014, and applies to the purchase or lease of qualified property primarily used in these qualified activities by a qualified person. Although the applicable laws are somewhat more complex, qualified property is generally defined as tangible personal property used in a qualified activity that has a useful life of greater than one year.

In regards to the actual benefit, the partial exemption reduces the tax rate on these qualified expenditures by approximately 55 percent, with a rate reduction of a little under 4.2 percent. Since the current statewide tax rate is 7.5 percent, the partial exemption reduces the sales tax on qualifying property sold to a qualified person to a rate of just over 3.3 percent, plus any applicable district taxes. Simply put, $1 million in qualified expenditures would result in an immediate $42,000 of above-the-line savings.

WHAT ACTIVITIES AND PURCHASES QUALIFY?

Most wineries will find that their production falls into California’s definition of manufacturing. Moreover, if you’re building a new winery production facility, many of the construction costs may also qualify to generate tax savings.

If your winery does qualify for the incentive, you’ll need to complete an exemption certificate specific to this program and provide it to your construction vendor for a reduced tax rate.

Purchases of the following items likely qualify for the partial exemption:

  • Crushers
  • Stainless steel fermentation tanks
  • Bottle washers
  • Laboratory testing equipment

The construction of barrel buildings and other special purpose buildings also potentially qualify for the partial exemption. The following three categories of property, on the other hand, are ineligible for the partial exemption:

  • Consumables with a useful life of less than one year. This would include chemicals, such as gelatin, bentonite, and sulfur dioxite, which are used as manufacturing aids.
  • Furniture and equipment used to store completed wine. This would include forklifts or dollies used to move finished wine from storage to the loading docks.
  • Administrative and general management or marketing property. This would include tasting room furnishings, computers used in your accounting office, and display racks.

BENEFITS AND CHALLENGES

Odds are you aren’t purchasing wine production equipment solely for the pleasure of claiming the partial exemption. You’re growing, improving your products, and becoming more sophisticated as a business, which means every dollar you can save on taxes is a dollar you can reinvest toward your long-term goals.

Though the partial exemption isn’t intended to be difficult to claim, there are a few areas where wineries can get snagged. Some of the issues that may come up as you pursue the exemption include:

  • Difficulty recouping overpayments. Since the incentive was enacted, many wineries have continued to pay tax as if the incentive didn’t exist, meaning they’ve already overpaid tax on qualified expenditures. Most aren’t aware of how to recoup these overpayments.
  • Pushback from vendors. Because many businesses aren’t aware of the incentive, wineries and other manufacturers attempting to purchase qualified property are encountering resistance from their vendors, which don’t necessarily know (or believe) that this partial exemption even exists.
  • Rates passed down through contractors. When performing work for a qualified business, a construction contractor may purchase some materials at the reduced or partially exempt tax rate, passing that benefit on to the customer. The rules that govern construction contractors are complex, and as a result this issue has been hotly debated on a number of fronts.

NEXT STEPS

The first step in claiming the partial exemption is to document your qualification for it. Then, you’ll need to complete the Partial Exemption Certificate for Manufacturing, Research and Development Equipment (Form BOE-230-M or BOE-230-MC), and provide that certificate to your vendor.

If you purchase equipment from a non-California retailer that doesn’t collect California sales and use tax, report the purchase on your California sales and use tax return, where there’s a section specifically for partial exemptions.

You may create an exemption certificate for each specific purchase you plan to make, or you can choose to create a blanket certificate. If you’re purchasing from a vendor that provides both equipment and consumables, creating an exemption certificate for each individual purchase will help you make sure you’re taking the partial exemption only on qualified items.

WE'RE HERE TO HELP

It’s nice to finally see California provide a real cash incentive that isn’t tied to an income tax return. Our state and local tax professionals have helped clients resolve many of the challenges associated with claiming this new partial exemption, and we’ve also helped them pursue other planning opportunities related to this incentive. Contact your Moss Adams tax professional for more information on whether your operations may qualify and for help claiming the exemption.


Mike Ricioli has been in public accounting since 2000. He leads the firm’s tax practice for the wine industry and oversees his clients’ complex, consolidated, multistate tax returns, assists with quarterly tax projections, and continually seeks out applicable federal and state tax credits. Michael can be reached at (707) 535-4152 or michael.ricioli@mossadams.com.

Alex Tran has been in public accounting since 2007. He provides state and local tax expertise to clients in a wide range of industries, focusing on multistate income and franchise taxes, business activity taxes, sales and use taxes, and tax credits and incentives. Alex can be reached at (858) 627-1456 or alex.tran@mossadams.com.


The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Moss Adams LLP. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.

- See more at: http://www.mossadams.com/articles/2015/june/ca-manufacturing-incentive-for-wineries#sthash.8UQtVugm.dpuf


Better Data for Better Business
17 November, 2014

Moss Adams has partnered once again with Farm Credit Alliance Partners and Turrentine Brokerage to bring you the 2015 Wine Industry Benchmarking Survey.

Start the survey:https://www.surveymonkey.com/s/WIBS2015

This year’s survey results will provide insight into:

  • Sales and production data with trend analysis
  • Viticulture data and grape market trends
  • Capital improvements and development activities
  • Sell-through and discounts by sales channel and region
  • Operational data by region
  • Future/forecasting and planning

Your Participation is Key After all, the better the data we collect, the
better insight we can provide to you and others.

About the Survey Available in January 2015, the compiled report will be a useful tool for wineries and vineyards in California, Oregon, and Washington to measure their businesses against others in the industry and prepare their strategies for the years ahead. Survey results will provide insights on a range of topics, from sales and production data to operating and forecasting metrics by region.

Confidentiality All submitted data is held in strict confidence. Only aggregate data is disclosed in the statistical reports and other analyses. Data will only be aggregated in groupings that have a sufficient number of participants to ensure that the information of any individual participant is not disclosed.

Questions? For questions or assistance with the survey, contact Nicholas Hansen at (707) 535-4143.

2015-benchmark-survey

Moss Adams LLP is one of the largest accounting, tax, and consulting services firm in the nation. Moss Adams is the business partner of choice for more than 300 wineries and vineyards. Our Santa Rosa and Napa offices serve as the headquarters of the firm’s wine industry practice.

Farm Credit Alliance Partners - Alliance Sponsoring Partners – American AgCreditFarm Credit West,Northwest Farm Credit and CoBank provide financing, leasing, insurance, and other financial services to agriculture and agribusinesses as part of the Farm Credit System. Founded in 1916, the Farm Credit System is a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation’s rural economy. The System specializes in providing financing and related services to borrowers in the agricultural and rural sectors through the four Banks and 82 affiliated Associations.

Turrentine Brokerage brokers winegrapes from all California regions and wines in bulk from California and around the world. Turrentine Brokerage serves as a trusted and strategic advisor to deliver customized solutions for growers, wineries and financiers based upon:

  • A reputation for integrity earned with over 40 years of service
  • Quick response to client needs
  • Demonstrated expertise, with the most experienced team of brokers and analysts in the industry.
  • Brokering grapes and bulk wine – Domestic and International
  • Proven long-term strategies from exclusive and superior market information and proprietary research
  • Unmatched expertise in long-term contracts

Complimentary Family Winemakers of CA Webcast: Budgeting for 2015 - Top Changes You Need to Make
21 October, 2014

Complimentary Family Winemakers of CA Webcast: Budgeting for 2015 - Top Changes You Need to Make

Friday, November 14th

9:00 a.m.-10:00 a.m. PT

Register Now!

The budgeting season is now upon us and there has never been a better time for wineries to start the journey away from the traditional annual budgeting process towards a more responsive and dynamic plan. Focusing on forecasting and its related processes, this webcast will outline the top changes and inclusions you can make to transform the way your business responds to today's changing markets and business opportunities.<!--?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /-->

 


Free Webcast: Foreign Exports = Permanent Tax Savings
09 September, 2014

We're pleased to offer a series of webcasts presented by assurance, tax, and consulting professionals from our national Wineries & Vineyards Practice.Take advantage of this opportunity to learn more about financial and operational topics vital to your business – and earn CPE credit in the process. The webcasts are free, but preregistration is required.

Foreign Exports = Permanent Tax Savings

Using an Interest Charge Domestic International Sales Corporations (IC -DISCs), United States producers with foreign exports can create a permanent tax savings as significant as the difference between their qualified dividend rate and their highest ordinary income rate. IC-DISCs were created by Congress many years ago via the Internal Revenue Code to help domestic companies in global competition. Learn more about the organizational structure, taxation, and other benefits of an IC-DISC.

Thursday, November 13th

10:00-11:00AM

Offers 1 CPE credit 

Register: www.mossadams.com/mareserve 


Family Winemakers of CA Webcast: Business Strategies and Tools for Utilizing Valuable Water Resources
20 June, 2014

Focus on Water: Business Strategies and Tools for Utilizing Valuable Water Resources

Friday, August 8th 

9:00 a.m.-10:00 a.m. PT

Free Webcast

Register Now!

Presenters include: Moss Adams, Atlas Vineyard Management, and Jackson Family Wines.

The drought in California has shone a laser-like spotlight on water supply and water use issues –especially for agriculture – that includes wineries and vineyards.  There is a hallowed saying that “ a farmer’s greatest asset is his land”; but in today’s world it would be more accurate to add – “IF that land has sufficient water”. Without enough water, that land is worth a fraction of the value of that same land with water.  So it begs the questions - If you don’t have enough water, what do you do?

Attend this webcast to learn how to maximize what you have to protect your business, save the vines, safeguard crop yields, and maintain grape quality.

 

 


Moss Adams Presents Family Winemakers of CA Webcast: How Secure is Your Wine Club?
09 April, 2014

How Secure is Your Wine Club?

Friday, May 2nd
9:00 a.m.-10:00 a.m. PT
Free Webcast

Register Now!

While retail sales are becoming increasingly important to wineries, the ubiquitous use of payment cards at the vineyard and online may present serious risks if businesses don’t understand their full responsibilities. While to date we haven’t seen a large number of reported breaches within the wine industry; e-commerce is increasing at a rapid rate, and protecting customer information will remain a critical priority. Because your customers tend to be from a higher income bracket, their data is extremely valuable to criminals and a highly desirable target to organized crime.

Attend this webcast to discover how to comply with the Payment Card Industry Data Security Standard (PCI DSS) and learn how to ensure that your valued customer data is secure and off-limits to thieves.


Free Webcast: March 27th - Creating Growth, Brand Equity and Value
12 March, 2014

Webcast: Creating Growth, Brand Equity and Value
March 27th
10:00-11:00 AM
Online Education

Companies like yours are fortunate to have many opportunities for growth and expansion available to them. Beyond just revenue growth, many of these opportunities enable the creation of additional brand equity and increased enterprise value. Whether organic or acquisitive, the most effective and profitable growth strategies are created by considering all three of these critical dimensions. We will discuss how to systematically and successfully create a platform for sustainable and profitable growth, using an integrated and holistic set of tools that leverage the interrelationships between revenue, brand equity and enterprise value.

Cost to Attend: Complimentary

Register here: www.mossadams.com/foodforthought  


2013 Wine Industry Financial Benchmarking Report: The Results are In!
18 December, 2013

Wine survey banner

We’re pleased to provide you with the results of our 2013 Wine Industry Financial Benchmarking Report. Moss Adams LLP, the Farm Credit Alliance, and Turrentine Brokerage are committed to continuing to serve as thought leaders in the wine industry, and we view the report as an opportunity to provide wineries, grape growers, and negociants with comparative and insightful information. This survey builds on the results published by Moss Adams in 2009 that analyzed a range of topics including general industry trends, sales and production data, viticulture data along with operating and financial metrics by region.

The goal of the survey? To bring you valuable, insightful data and analysis to help you benchmark your operating and financial results against industry leaders. We believe the information gathered in the 2013 Wine Industry Financial Benchmarking Survey is an important tool as you measure your results and consider future business strategies.

The 2013 Wine Industry Financial Benchmarking Report includes:

  • General economics trends
  • Wine industry trends
  • Consumer demand metrics
  • Industry supply update
  • Vineyard land values analysis
  • Performance and trends by category
  • Growers analysis by region

Click here to learn more about the report or purchase your copy.


Moss Adams Partners with Family Winemakers of CA for Inventory Costing Webcast
25 September, 2013

 Moss Adams Partners with Family Winemakers of CA for Complimentary Webcast 

Topic: Inventory Costing
Friday, November 1st
9:00 a.m.-10:00 a.m. PT
Free Webcast

Understanding how much inventory actually costs and how much money is tied up in inventory has a direct impact on profitability and cash flow. This session will walk through the basics of inventory costing and include an inventory cycle example including production costs and inventory value and the cost of wine sold. We'll also explore some of the tax benefits associated with costing. 

Click hereto register for this free webcast!


2013 Moss Adams Wine Industry Financial Benchmarking Survey Deadline Extended to August 15th Due to Demand!
30 July, 2013

2013 Moss Adams Wine Industry Financial Benchmarking Survey Deadline Extended to August 15th Due to Demand!

Due to the high-demand of the Wine Industry Financial Benchmarking Survey, we have extended the deadline to August 15th. Don’t miss the opportunity to be a part of the most comprehensive industry survey that includes both financial and operational benchmarks, plus:

  • A complimentary copy of the final report: Receive it before non-participants can purchase it – a $495 value. To be eligible for the free copy of the final results, you will need to complete all sections of the survey.
  • Benchmark your business: Get priceless benchmarks on sales and production, viticulture, plus operating and financial metrics by region.
  • Support the industry you love: Participation by the wine industry is vital to compiling meaningful data that all participants can benefit from.
  • PLUS all participants who complete their survey by the new deadline of August 15th will be entered to win lunch for your entire team - a $500 value! Say thank you to your team for helping your business take part in this important industry benchmark.

Getting Started or Keep Working Visit www.mossadams.com/winesurvey to start your survey. Once registered, you will receive an email with your unique survey link and instructions. If you do not receive the email within 5 minutes, check your spam folder. Contact Rick Boland (707) 535-4114 to keep working on your in-progress survey.

Short on Time? Already started the survey and want to complete it? Don't have the time to complete the survey? Our team can help you finish your survey. Contact Rick Boland (707) 535-4114 for assistance.

About the Survey Available this October, the compiled report will be a useful tool for wineries and growers in California, Oregon, and Washington to measure their businesses against industry leaders and prepare their strategies for the years ahead. Survey results will provide insights on a range of topics, from sales and production data to operating and financial metrics by region.

Confidentiality All submitted data is held in strict confidence. The raw data and associated identities of participants are accessible only by authorized Moss Adams LLP survey staff. Only aggregate data is disclosed in the statistical reports and other analyses. Data will only be aggregated in groupings that have a sufficient number of participants to ensure that the information of any individual participant is not disclosed.


Final Days to Participate in Second Wine Industry Financial Benchmarking Survey
18 July, 2013

Final Days to Participate in Second Wine Industry Financial Benchmarking Survey

Survey Enables Wineries to Measure their Businesses Against Industry Leaders

Santa Rosa, Calif., July 18, 2013 — The survey closes July 22nd! There are only four days left to participate in the 2013 Wine Industry Financial Benchmarking Survey. The confidential results, available in October, will be a useful tool for wineries and vineyards to measure their businesses against industry leaders and develop strategies to improve their operating and financial results. All participants who complete the survey will receive a complimentary copy of the full report plus they’ll be entered to win a catered lunch to share with their colleagues (a $500 value). Moss Adams LLP, in partnership with Farm Credit Alliance Partners - American AgCredit, Farm Credit West, Northwest Farm Credit and CoBank - and Turrentine Brokerage encourage you to take part in the only industry wide survey to include both financial and operational data

Start your survey at www.mossadams.com/winesurvey. Once registered, you will receive an email with your unique survey link and instructions. If you do not receive the email within 5 minutes, check your spam folder. Don't have the time to complete the survey? Already started the survey and want to finish it? Our team can help you. Contact Rick Boland at rick.boland@mossadams.com or (707) 535-4114 for assistance.

 

For more information, please contact:

Rick Boland, Senior Business Consultant | rick.boland@mossadams.com | (707)535-4114

Kelly Walsh, Wine Industry Marketing Manager | kelly.walsh@mossadams.com | (949) 221-4000

 

Moss Adams LLP is one of the largest accounting and consulting firms in the nation. Together with its affiliates, the firm provides insight and expertise to nearly 300 wine industry clients throughout the U.S.

Farm Credit Alliance Partners Alliance sponsoring partners - American AgCredit, Farm Credit West, Northwest Farm Credit and CoBank - provide financing, leasing, insurance, and other financial services to agriculture and agribusinesses as part of the Farm Credit System. Combined, they serve more than 70,000 farmers, ranchers, cooperatives, and other rural borrowers in all 50 states.

 

Turrentine Brokerage isa leading provider to growers, wineries and financiers in the brokering of winegrapes from all California regions and wines in bulk from California and around the world. A reputable source for exclusive and superior market information with over 40 years of service, and the industry’s most experienced team of brokers and analysts.


Moss Adams LLP Launches 2013 Wine Industry Financial Benchmarking Survey
28 June, 2013

Moss Adams LLP, with its sponsors The Farm Credit Alliance and Turrentine Brokerage, has just launched the 2013 Wine Industry Financial Benchmarking Survey. When completed, the survey results will provide critical data to wineries and vineyards throughout California, Oregon and Washington, enabling them to measure their 2012 operating and financial results against industry leaders.

The survey is open until July 22 and will build on the 2009 survey results that analyzed a range of topics including general industry trends, sales, production and viticulture data, along with operating and financial metrics by region. Improvements to this year’s survey include:

  • Four distinct tracks for wineries, vineyards, and negociants
  • Streamlined financial information requirement
  • Reduced/condensed number of questions

The Moss Adams Wine Industry Financial Benchmarking Survey set the standard for providing quality operating and financial benchmarks and we are thrilled to continue this great work with updated data,” said Rick Boland, Senior Business Consultant at Moss Adams, one of the largest accounting and business-consulting firms in the nation. “Through our new partnerships we hope to engage even more industry participation to ensure results that are precise and relevant to all parties involved in the wine business.”

Boland says the benchmarking report data gives wine trade professionals essential information to understand operating trends and develop current and long-term strategies critical to overall industry success. He notes that, “the survey is structured to provide reliable and validated comparative data from individual businesses across the industry, particularly within specific peer groups.”

  • The comprehensive industry survey includes both financial and operational benchmarks, plus:
  • A complimentary copy of the final report: a $495 value.
  • The ability to measure business practices against validated, reliable industry statistics, presented in an easy to understand format.
  • Support for the industry. Participation by the wine industry is vital to compiling meaningful data that all participants will benefit from.

Click here to access the survey. Once registered, participants will receive an email with a unique survey link and instructions. All submitted data are held in strict confidence. The raw data and associated identities of participants are accessible only by authorized Moss Adams LLP survey staff. Only aggregate data is disclosed in the statistical reports and other analyses. Data will only be aggregated in groupings that have a sufficient number of participants to ensure that the information of any individual participant is not disclosed.

Moss Adams and its partners will be making a presentation on the survey results at the upcoming Wine Industry Financial Symposium in September.

Contact Information
For information and questions contact: Rick Boland at 707-535-4114.

 www.mossadams.com/winesurvey


2013 Moss Adams Wine Industry Financial Benchmarking Survey - Call for Participants!
28 May, 2013

Don't Miss Out!

Participate today in the 2013 Moss Adams Wine Industry Financial Benchmarking Survey. We’ve made several improvements this year including:

Why Participate?
Be a part of the most comprehensive industry survey that includes both financial and operational benchmarks, plus:

  • Get a complimentary copy of the final report: Receive it before non-participants can purchase it – a $495 value.
  • Benchmark your business: Measure your business against validated, reliable industry statistics presented in an easy to understand format.
  • Support the industry you love: Participation by the wine industry is vital to compiling meaningful data that all participants can benefit from

Click here to participate or visit www.mossadams.com/winesurvey. Once registered, you will receive an email with your unique survey link and instructions. If you do not receive the email within 5 minutes, check your spam folder.

About the Survey
The confidential results will be significantly more financially focused than the 2009 version including common sized financial statement information. Available this October, the report will be a useful tool for wineries and growers in California, Oregon, and Washington to measure their businesses against industry leaders and prepare their strategies for the years ahead. Survey results will provide insights on a range of topics, from sales and production data to operating and financial metrics by region.

Confidentiality
All submitted data is held in strict confidence. The raw data and associated identities of participants are accessible only by authorized Moss Adams LLP survey staff. Only aggregate data is disclosed in the statistical reports and other analyses. Data will only be aggregated in groupings that have a sufficient number of participants to ensure that the information of any individual participant is not disclosed.

Thank You
We'd like to thank you in advance for your participation in the survey. If you have any questions, please contact Rick Boland at 707-535-4114


2013 Tax Outlook for you, your business, and your estate plan
25 April, 2013

INDIVIDUALS             (Business - Estate PLan)

by Ryan Blume, Senior Manager, Wealth Services Practice 
 

Out with one tax season, in with another. Now that most taxpayers have filed their 2012 returns, it’s time to look ahead to next year—what’s changing, what’s not, and what it means for your ability to retain more of your earnings.

The American Taxpayer Relief Act of 2012 (ATRA)—the compromise legislation passed a few months ago—does, as its name implies, provide substantial tax relief to many taxpayers. Yet while many will enjoy some benefits, others will see tax increases. Let’s take a closer look at the legislation as well as other tax laws impacting individuals starting in 2013, along with some tax planning strategies.

 

The ATRA retains 2012 ordinary income tax rates for most taxpayers. But, beginning in 2013, individuals with taxable income that exceeds $400,000 (for single filers) or $450,000 (for married couples filing jointly) will be subject to a top rate of 39.6 percent. Because the tax rates aren’t scheduled to expire, for 2013 you can employ the traditional timing strategies of accelerating deductible expenses into the current year and deferring income to the next year, where possible, to defer tax.

 

The ATRA retains the 15 percent long-term capital gains tax rate. However, it brings back the 20 percent rate for higher-income taxpayers. The 20 percent rate kicks in when taxable income exceeds $400,000 (for single filers) or $450,000 (for married couples filing jointly). The 0 percent rate for taxpayers in the bottom two brackets was also retained.

If you have children or other loved ones in the lower brackets, consider transferring appreciated assets to them. They can sell the assets and pay less tax (or no tax) on the capital gain. You may find this strategy particularly powerful if you’d pay tax at the 20 percent rate. But before gifting any assets, if the recipients are under age 24, make sure they won’t be subject to the “kiddie tax,” which was created to prevent excessive income shifting and taxes a child’s income at the parent’s marginal rate.

Regardless of your children’s ages, consider the gift tax consequences—and don’t neglect installment sales, which can be useful for reducing and deferring capital gains tax.

Also, consider making a charitable contribution consisting of appreciated securities instead of cash. You’ll not only receive a charitable deduction for the fair market value but also avoid paying the capital gains tax and the new net investment income tax discussed below.

 

The ATRA retains the long-term capital gains treatment of qualified dividends, so most taxpayers will continue to enjoy a 15 percent rate (0 percent for those in the bottom two brackets). However, higher-income taxpayers in the top tax bracket will face a rate increase (to 20 percent) on qualified dividends.

If you hold dividend-producing investments and will face the 20 percent rate, consider whether you should make adjustments to your portfolio in light of their potentially higher tax cost. Keep in mind, however, that qualified dividends will remain more attractive from a tax perspective than other income-producing investments. For example, interest from CDs, money market accounts, and taxable bonds will continue to be taxed at ordinary income rates.

 

The ATRA allows both the overall limit on itemized deductions and personal exemption phaseout to return in 2013 when income exceeds thresholds of $250,000 (for single filers) and $300,000 (for married couples filing jointly). Taxpayers will want to consider the timing of deductions and possibly defer or accelerate deductions to increase the benefit.

 

Before the ATRA, unlike the regular tax system, the AMT system wasn’t automatically adjusted for inflation. Instead Congress regularly passed a “patch” to increase the AMT exemption. The last patch had expired on December 31, 2011, so millions more taxpayers could have been subject to the AMT on their 2012 tax returns.

The ATRA makes the patch permanent by increasing the exemptions for 2012 and indexing them for inflation for future years. It also retains the ability to offset your AMT liability with certain nonrefundable personal credits.

You may be able to time income and deductions to avoid the AMT or reduce its impact. Now that AMT relief is permanent, AMT planning will be a little easier.

 

For the past several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. The ATRA extends this break for 2012 and 2013. Consider making a contemplated purchase in 2013 to ensure the sales tax deduction is available.

 

Many child- and education-related breaks that had expired (generally on December 31, 2012) have been retained by the ATRA, while others have been temporarily extended. These include:

  • The $1,000 child credit and expanded refundability of the credit
  • The increased adoption credit and income exclusion for employer-provided adoption assistance
  • The increased dependent care credit
  • The American Opportunity education credit (through 2017)
  • The above-the-line tuition and fees deduction (through 2013)
  • Enhancements to the student loan interest deduction
  • The $2,000 Coverdell Education Savings Account (ESA) annual contribution limit and other ESA enhancements

Be aware that the benefit of many of these breaks is phased out if a taxpayer’s income exceeds certain limits.

 

The ATRA included a number of other provisions that were either extended or retained that will benefit individuals.

  • Eased restrictions for “in plan” Roth 401(k) rollovers
  • Itemized deduction for qualified mortgage insurance premiums (through 2013)
  • Exclusion of up to $2 million of debt discharge income from home debt forgiveness (through 2013)
  • Nonbusiness energy property credit of 10 percent of the cost with a $500 lifetime credit limit (through 2013)
  • Qualified charitable distribution (QCD) from IRAs and qualified plans
  • Marriage penalty relief for the standard deduction

The extension of QCDs is particularly beneficial for taxpayers over age 70 1/2 with required minimum distributions from an IRA that’s also set up to make charitable contributions. When you use the QCD, the income resulting from the IRA distribution isn’t included in adjusted gross income (AGI), which means various phaseouts that are based on AGI won’t be as high, potentially resulting in lower tax.

 

Beginning January 1, 2013, an additional 0.9 percent Medicare tax on earned income and a new 3.8 percent net investment income tax (NIIT) go into effect when income exceeds certain thresholds. Taxpayers hit with higher income tax rates under the ATRA will generally also face the expanded Medicare taxes.

The additional 0.9 percent Medicare tax applies to FICA wages and self-employment income exceeding $200,000 (for single filers and heads of households) or $250,000 (for married couples filing jointly). The new 3.8 percent NIIT applies to net investment income to the extent that modified adjusted gross income exceeds those same thresholds.

Net investment income includes interest, dividends, annuities, royalties, capital gains, gains from the disposal of nonbusiness property, net rental income, and other passive income. It does not include wages and self-employment income (which may, however, be subject to the additional 0.9 percent Medicare tax), distributions from IRAs or qualified plans, gains on the sale of an active interest in a pass-through entity, nonpassive income from an active pass-through entity, excluded gains on the sale of a residence, tax-exempt interest (municipal bonds), and Roth IRA distributions.

To illustrate, consider a single taxpayer with $100,000 in net investment income, $300,000 in wages, and $400,000 of modified adjusted gross income (MAGI). The total additional Medicare tax is calculated as follows:

$300,000 IN WAGES – $200,000 THRESHOLD = $100,000 x 0.9% = $900

The total NIIT is calculated as follows:

$400,000 IN MAGI – $200,000 THRESHOLD = $200,000 or $100,000 NII

$100,000 NII x 3.8% = $3,800

TOTAL ADDITIONAL MEDICARE AND NET INVESTMENT INCOME TAX = $4,700

Higher-income taxpayers will want to consider strategies to reduce net investment income. This could include increasing participation or combining (grouping) activities to meet participation thresholds to be considered an active participant in pass-through business activities, restructuring investment portfolios to increase tax-free municipal bond income, or, where and if appropriate, modifying rental agreements.

 

The changes under the ATRA affect many areas of planning, plus there are the Medicare tax increases to consider. Complicating matters further is the fact that higher rates and various limits on tax breaks go into effect at different income levels, depending on the type of tax or break.

For more information on the ATRA, its effect on individuals, and help determining exactly how you’ll be affected and what strategies you can implement to reduce, or at least defer, taxes, contact your Moss Adams LLP tax professional.


A Personal Financial Specialist and Certified Financial Planner® as well as a CPA, Ryan Blume has more than 15 years of experience advising high net worth individuals, families, businesses, and business owners on income tax, stock option planning, business ownership transition, cash flow, retirement, and other tax and financial planning matters. You can reach him at (425) 303-3009 or ryan.blume@mossadams.com.


Moss Adams Reserve Webcast Series Returns! First Session - March 19th
01 March, 2013

We are proud to announce the return of our Moss Adams Reservewebcast series. Learn from the comfort of your home or office. Presented by assurance, tax, and consulting professionals from our national Wine Practice. Take advantage of this opportunity to learn more about financial and operational topics vital to your business - and earn Continuing Professional Education (CPE) credit in the process. The webcasts are free, but preregistration is required. Register today at www.mossadams.com/mareserve.

Tuesday, March 19th - Inventory Costing 10:00-11:00AM
How much your inventory actually costs and how much money is tied up in your inventory has a direct impact on your profitability and cash flow. This session will walk you through an inventory costing exercise that covers the complete inventory cycle, including production costs, inventory value, and the cost of wine sold.

Presenter: Rick Boland, Senior Business Consultant, has more than 25 years of experience helping wineries navigate complex business issues, including growth strategies, mergers and acquisitions, and operational and debt restructuring.

Register: www.mossadams.com/mareserve


Estate Tax Planning for 2012 and Beyond (webcast)
13 August, 2012

For Business Owners and Executives

Under current estate tax rules, rates are historically low, exclusions are high, and your opportunities for wealth transfer are unprecedented.  But those tax rules are set to expire at the end of 2012, so there is a strong possibility that estate taxes will change in 2013--only no one knows how. 

As a business owner or executive, what does this mean for your estate plan? 

Learn about your critical planning opportunities as we:  
    Review the estate, gift and generation-skipping tax rules in effect today 
   
Discuss unique estate planning challenges for business owners and executives 
    Discuss what you can still do in 2012  
   
Look at possible outcomes for 2013 and considerations for moving forward 

Presenters

Val Perry, Tax Partner | Moss Adams LLP
With more than 20 years experience, Val advises privately held companies and their owners on tax, estate planning, entity structure, business financial planning and business succession. She has extensive experience advising business owners on the personal income and estate tax impact of selling a business. Currently, Val co-chairs Moss Adams' firmwide estate planning team. 

Francine Vorhees, Tax Partner | Moss Adams LLP
Francine combines practical business experience with technical knowledge to advise clients on tax compliance and planning, business consulting and estate tax issues.  Her passion is helping clients achieve their business and personal goals while minimizing overall taxes. With more than 30 years experience, she previously served as president of the Sacramento Estate Planning Council and currently co-chairs Moss Adams' firmwide estate planning team.

August 28, 2012
10:00 a.m. - 11:00 a.m. Pacific
Complimentary Attendance | CPE Credit: 1
Level: Basic | Prerequisites: None
Webcast presented by Moss Adams LLP


REGISTER NOW


New Moss Adams Reserve Webcast August 14th
23 July, 2012

We’re pleased to offer a series of webcasts presented by assurance, tax, and consulting professionals from our Wine Industry Group. Take advantage of this opportunity to learn more about financial and operational topics vital to your business—and earn CPE credit in the process. The webcasts are free, but pre-registration is required.

Preventing Fraud Before It Starts
Tueday, August 14th 10:00 a.m.–11:00 a.m. P.T.
Register today at www.mossadams.com/mareserve 

Description: In this economic environment, employee theft is on the rise. The single most important factor in the prevention of fraud is education. Learn how to protect your business. Discover what internal controls can help desist this alarming trend.

Presenter: Rae Paulson, Business Assurance Manager - Rae has been in public accounting since 2005. She provides assurance services, internal control reviews, and operational improvement recommendations for clients in a variety of industries, predominantly wine.


2012 Wine Industry Financial Benchmarking Survey
14 May, 2012

Participate Today! 

Moss Adams LLP announces the 2012 Wine Industry Financial Benchmarking Survey. The results will provide wine industry professionals like you with a valuable financial tool, relevant to your unique set of circumstances and practices.

Your participation is critical to making the survey a success for everyone. Click here to begin the survey. Or copy and paste this link into your browser: http://www8.intellisurvey.com/run/ma2012wine. The survey will be open for participation from Friday, May 11th to Friday, June 15th and will encompass the fiscal reporting years 2009-2011. 

As a participating winery or vineyard, you will receive a complimentary copy of the final report.  The confidential results, available in late September 2012, will be a useful tool for you to measure your business against industry leaders and prepare your strategies for the years ahead. Non-participants will be able to purchase a copy of the final report for $495.

Key survey takeaways will include:

  • General industry trends
  • Sales and production data with trend analysis for wineries
  • Current viticulture data and grape market trends for growers
  • Common sized financial statement analysis for benchmarking
  • Operational analyses by region

We'd like to thank you in advance for your participation in the survey. If you have any questions, please contact Rick Boland at rick.boland@mossadams.com or at 707-535-4114.


Minimizing Fiduciary Risk for Retirement Plan Sponsors
16 April, 2012

 

Many successful financial institutions spend time developing a strategic plan and adapting it to their changing economic and competitive landscape as well as controlling expenses and managing the risks that could seriously impact their profitability. Why then, when it comes to retirement plans, are these same activities often overlooked by the retirement plan fiduciaries? 

In this edition: 
   Why plan activities are often overlooked
 •  Best practices for fiduciaries
 •  The US Department of Labor (DOL) fiduciary code of conduct

Read this month's issue of  MA Now: Financial Services, where Areti Moularas and Ryan Franklin explore the benefits of taking an active role in overseeing your company's retirement plan.  

 


MA Now: Financial Services is written and edited by assurance, tax, and consulting thought leaders at Moss Adams LLP. Its goal is to provide key financial and operational insight into issues specific to your industry. Subscribe here. Are there topics you’d like to see us cover? Share your feedback with us.

Visit our Insights & Resources page to read more issues of MA Now.

For more information, please contact our contributors: 

Areti Moularas
Senior Manager
Financial Services
(360) 685-2294

Ryan Franklin
Financial Advisor, CFP®, CPA/PFS(509) 834-2458

Or visit our Web site:

www.mossadams.com

 


Moss Adams Reserve Webcast Series Returns!
27 February, 2012

Learn from the comfort of your home or office.

We’re pleased to offer a series of webcasts presented by our assurance, tax, and consulting professionals dedicated to serving the wine industry. Take advantage of this opportunity to learn more about financial and operational topics vital to your business— and earn CPE credit in the process. The webcasts are free, but pre-registration is required.

Register today at www.mossadams.com/mareserve

Upcoming Sessions

Tuesday, February 28th - Planning Your Exit Strategy

How much planning has your winery done for its future? It’s never too early to think about preserving your business and, ultimately, your legacy. Attend this webcast to learn about key strategies that can make ownership transition successful.

Tuesday, April 24th - Increasing Your Tax Saving Opportunities

Many winery owners don’t take advantage of all the tax credits and incentives they’re eligible for. Attend this webcast to gain an understanding of the tax incentive landscape and discover how you can leverage recent legislation to spend less money on taxes—and more on growing your business.

Tuesday, June 12th - The Art of Balance Sheet Management

Applying for loans, writing a business plan, or simply being able to make informed business decisions: Each requires knowing your business’s assets, liabilities, and equity—in other words, your balance sheet. Attend this webcast to learn how to master this most important of financial statements.

Register today at www.mossadams.com/mareserve

 


A Special Food for Thought (WebCast)
18 January, 2012

You're Invited - 
The Food Processing & Agriculture Industry Group is pleased to offer a series of complimentary webcasts presented by our professionals as well as industry leaders. Take advantage of the opportunity to learn more about financial and operational topics vital to your business - and earn CPE credit in the process. The webcasts are free, but pre-registration is required.

A Special Food for Thought Webcast
Your Global Supply Chain - Is It Working For You?Presented by Moss Adams LLP, GDI Consulting & Training, and Sheppard Mullin

Thursday, January 26th
10:00 a.m. - 11:30 a.m. PT 
Complimentary Webcast | 1 CPE Credit
Final CPE is based on the length of participation, polling questions, etc.

Register Now

The 2010 CA Transparency in Supply Chain Act went into effect January 1, 2012. How is your company handling it?  The growing threat of supply chain disruptions is a top business concern for many business leaders in the wake of this Act. Is your company prepared? Proactive and thorough due diligence of critical suppliers is a new necessity in the global supply world. This Act impacts more than just those who are headquartered in CA. Join this webcast to learn why you should assess supplier imposed risks and performance and how you can better position your company for the spotlight shone by the Supply Chain Act.

Prerequisites - None
Program Level - Intermediate
Advanced Preparation - None 

 
Presenters
Alan G. Dunn | GDI Consulting and Training
Founder

In addition to his 30 years of management and technical consulting experience, Alan has several years of line management experience in manufacturing and distribution environments. He has extensive background in most functions within a manufacturing company and has participated heavily in over 400 manufacturing and distribution consulting projects in over 120 companies across most industrial sectors.

Peter M. Menard | Sheppard Mullin
Partner

Peter is a senior partner in the Corporate Practice Group and an adjunct professor at the University of Southern California Gould School of Law where he teaches securities regulation. Peter's principal areas of practice are corporate governance, securities law compliance and corporate transactions. He is a frequent commentator on issues of corporate governance, including the Sarbanes-Oxley Act and the Dodd-Frank Act, and corporate social responsibility. 

Melissa Harman |
Moss Adams LLP
CPA, Partner
Melissa has been in public accounting since 1998. She provides professional services to a variety of industries. Melissa currently leads the firms Human Rights Compliance Services Group.

Moss Adams is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. www.nasba.org

For information about Moss Adams administrative policies regarding CPE, refunds or complaints, please contact (206) 302-6947.


Moss Adams Reserve Webcast: State and Local Tax Planning for Wineries
28 October, 2011

 We’re pleased to offer a series of webcasts presented by assurance, tax, and consulting professionals from our Wine Industry Group. Take advantage of this opportunity to learn more about financial and operational topics vital to your business—and earn CPE credit in the process. The webcasts are free, but pre-registration is required.

State and Local Tax Planning for Wineries
Wednesday, November 30
10:00 a.m.–11:00 a.m. P.T.
Register today at www.mossadams.com/mareserve 

Description: Property taxes are expenses that can be controlled and reduced. However, wineries and vineyards may not always have the internal resources or valuation skills necessary to take charge of their property tax assessments. Discover how to avoid overpayment and improve your bottom line.

Presenter
Renée S. Bartlett, Senior Manager  has more than 27 yearsof experience in property tax consulting. She is a commercial property appraiser and a member of both the Society of Auditor Appraisers and the Institute for Professionals in Taxation.


Three International Tax Traps to Avoid
30 September, 2011

Many food processors are exploring the international marketplace as the next frontier. After all, with 95 percent of potential customers outside our borders, there’s a large market for your products. But before you plow ahead, there are several important tax pitfalls to watch out for. In this edition:


    The three international tax traps to beware of
 
  An opportunity to mitigate your export tax burden  
  
  The benefits of planning for international exports

Read this month’s issue
 where Roy Deaver explores common tax traps awaiting companies that choose to wade into international waters.


Sales Tax in the Digital Age
19 September, 2011

SaaS & Software - An Evolutionary Survey

 

Most states are looking for ways to increase their revenue. The movement from traditional product sales to technology enabled services and digital goods has become an area of focus for many of them. Since state laws are often many years behind the innovative business models we see in the technology industry, interpreting existing state laws has become more challenging and doesn’t always fall into neat categories for generalization.

For many emerging companies, sales tax compliance is a headache at best and can be an incremental cost of selling to customers if not properly collected in the first place. Even for more established companies, keeping up with the right laws and tax rates can be a heavy burden. Based on our work with companies at many stages of development to manage sales tax from application through ongoing compliance, we have found a number of consistent themes that are important.

Tuesday, September 27, 2011
10:00 - 11:00 a.m. PT
Webcast; CPE available*

During this webcast we will share with you:

    How and when sales tax is applied to software and SaaS companies 
    How a state’s Certificate of Exemption would be used for sales or purchases
    Process for correcting sales tax errors if they have occurred

    Possible benefit of a “Technology Transfer Agreement” for the State of California

    Credits and incentives which might be available to your company
 
Moderator
Steve Schechter, Partner
Technology & Life Sciences Group, Moss Adams LLP


Speakers
Marke Greene, Partner
State and Local Tax Practice, Moss Adams LLP


Marke has more than 11 years of experience in tax planning and structuring of transactions for public and closely held companies. Marke assists clients in engagements related to audit defense, multistate tax research, M&A transaction analysis, nexus studies and voluntary disclosure agreements, tax overpayment analysis, and other tax planning. Marke also consults with companies to secure ruling requests regarding state tax statutory and administrative interpretations.


Anna Ferraro, Senior Manager
State and Local Tax Practice, Moss Adams LLP

Anna has been handling California and multistate sales and use tax transactions for 19 years, and began her career with the California State Board of Equalization conducting sales and use tax audits. She spent 10 years working for Big Four accounting firms advising clients on transactions, creating tax decision matrices, performing nexus reviews, and negotiating voluntary disclosure agreements.  Anna also spent four and a half years in industry handling FAS 5 reserves, managing multistate audits, and assisting in a sales tax software implementation.


Register Today!
Please use registration code: TLS2 

 


The Opportunities of Digital Convergence
07 September, 2011

The convergence of media, technology, and personal devices is no longer an expectation for the future--it's a reality today. However, the market is far from mature and there are still many opportunities.

Apple is a good example of the blurred lines between a technology company, a telecommunications company, and an entertainment company. What does that mean for other businesses, the future of digital convergence, and the user experience?

Read this issue where Steve Schechter, Moss Adams' partner, shares his insights from serving these kinds of companies.


Food for Thought Complimentary Webcast Series - Register Now!
19 May, 2011

  Learn from the comfort of your home or office.

We’re pleased to offer a series of webcasts presented by assurance, tax, and consulting professionals from our Food Processing & Agriculture Group. Take advantage of this opportunity to learn more about financial and operational topics vital to your business—and earn CPE credit in the process. The webcasts are free, but pre-registration is required. All webcasts begin at 10:00 a.m. PT. Earn 1 CPE credit per session.

Register today:www.mossadams.com/foodforthought

Upcoming Sessions:

 June 9, 2011 -Business Succession Planning
While many owners recognize the importance of succession, few know where to start in developing comprehensive plans. Learn more about the processes of ownership transition and management succession—and preserving the family legacy from one generation to the next.

July 14, 2011 - Detecting and Preventing Fraud
Employee theft is on the rise, and the wine industry is no exception. The single most important factor in the prevention of fraud? Knowing how to protect your organization. In this webcast, you’ll discover which internal controls and best practices can help you guard against this alarming trend.

August 23, 2011 - Energy Tax Credits
Wineries and vineyards
 investing in alternative energy generation or energy efficiency can take advantage of a number of federal and state tax incentives, credits, and exemptions as well as an array of rebates, loan guarantees, and grants. Learn how your company can benefit from each of these programs.

September 15, 2011 - Sustainability Reporting
Corporate social responsibility is affecting the way many companies—both large and small— do business. Learn more about this emerging trend and how to measure and report your sustainability efforts for a range of needs.

October 27, 2011 - IC-DISC
Interest-Charge Domestic International Sales Corporations (IC-DISCs) were created by Congress many years ago via the Internal Revenue Code to help domestic companies in global competition. Learn more about the organizational structure, taxation, and other benefits of IC-DISCs. When the permanent tax savings can be up to 20 percent, can you afford not to?

November 17, 2011 - State and Local Tax Planning for Wineries
Property taxes are an operating expense that can be controlled and reduced. Wineries and vineyards often have a significant investment in real and personal property but may not have the internal resources or valuation skills necessary to take charge of their property tax assessments. We’ll cover ways to avoid overpayment of tax liabilities and improve your bottom line.

December 6, 2011 - Annual Accounting Update
Amid a constantly changing regulatory environment, it can be difficult to stay abreast of the financial reporting standards that apply to food processing and agriculture businesses. We’ll cover what’s new, what’s coming, and how to make sure your company remains in compliance.

December 13, 2011 - Annual Tax Update
Join us for a high-level year in review highlighting recent tax law changes impacting the food processing and agriculture industries as well as a preview of what’s on the horizon for 2012.


Recent Legislation Expands Depreciation Opportunities
09 February, 2011

   Recent Legislation Expands Depreciation Opportunities
For businesses seeking to capitalize on their fixed assets and boost cash flow, there's never been a better time. Thanks to five recent federal stimulus bills, you could be eligible to deduct up to 100 percent of the first-year depreciation of qualifying property. And 15-year straight-line depreciation has been extended through 2011, dramatically accelerating depreciation for certain qualified real property.

Which types of property are eligible? And what are the cutoff dates? We break it all down for you in our latest MA Alert
 


Visit our Publications page to read past Alerts, industry-focused newsletters, and other articles designed to help you succeed.

The 11th largest accounting and consulting firm in the United States, Moss Adams provides expertise to public, private, and not-for-profit enterprises across the nation, in a wide range of industries. Discover how we make a difference.

 


NOW AVAILABLE: Wine Industry Financial Benchmarking Survey - Executive Summary
14 April, 2010

Executive Summary Now Available

2009 Wine Industry Financial Benchmarking Report

Conducted and produced by Moss Adams LLP and the Demeter Group, the report is the first of its kind—an in-depth compilation and analysis of financial, production, and sales data that provides financial performance benchmarks for the wine industry.

The report offers valuable insights into areas of production volume, planting, and varietal focus; price points or distribution and sales strategies; and exploring and comparing the 'what-ifs' of meeting market challenges.

To request your copy, Click Here

Also Now Available:

Intentional Success: How Wineries are Combating the Doom and Gloom

Learn how some wineries are strategically combating and succeeding against the economic environment--and how you can, too.

Title Name Email Phone
Business Development Executive Jim Pidgeon jim.pidgeon@mossadams.com 415-677-8222
Wine National Practice Leader Jeff Gutsch jeff.gutsch@mossadams.com 707-535-4109
Business Development Executive Ted Grafe ted.grafe@mossadams.com 707-535-4146
Tax Partner Michael Ricioli michael.ricioli@mossadams.com 707-535-4142
Adobe Acrobat File

Credible financial data about the wine industry isn't easy to find that's why we're pleased to present the results of our 2013 Wine Industry Financial Benchmarking Survey.


Adobe Acrobat File

Preserve your business and your legacy for generations to come.


Learn from the comfort of your home or office.

We're pleased to offer a series of webcasts presented by our assurance, tax, and consulting professionals dedicated to serving the wine industry. Take advantage of this opportunity to learn more about financial and operational topics vital to your business and earn CPE credit in the process. The webcasts are free, but pre-registration is required.

Register today at www.mossadams.com/mareserve

Upcoming Sessions
Attendees receive 1.0 CPE credit per webcast. All webcasts begin at 10:00 a.m. Pacific time and last for approximately one hour.

June 12th - Related Party Transactions - What You Need to Know
The dollar volume of transactions between related parties continues to rise, and tax authorities around the world are placing a heightened focus on transfer pricing as a source of their revenue. In fact, many taxing jurisdictions consider transfer pricing to be their number one enforcement priority. Attend this webcast to learn how to get the appropriate transfer pricing policies and procedures in place, how to assess your risk, and best practices for related party transactions.

December 4th - Avoiding International Tax Traps
With 95 percent of potential customers outside our borders, many wineries are capitalizing on the booming popularity of wine in other countries. But before you make the jump into international waters, attend this webcast to learn what important tax pitfalls to watch out for.

Register today at www.mossadams.com/mareserve