It is with great sadness that we advise our readers of the passing of one of the firm’s partners Therese M. Connell, CPA (Tese) at the age of sixty five, after a lengthy illness.
When we think of and remember Tese in both her personal and professional life, the words that best describe her are “role model”. Her commitment to honesty, integrity, fair dealing and client service combined with her passion for technical excellence made her not only a role model but a CPA’s CPA. Tese was recognized throughout Southern New Jersey as an expert in the fields of estate planning, estate and trust taxation, gifting, and estate administration. She routinely worked with area attorneys in the development and implementation of cutting edge estate planning and asset protection planning.
Tese was also a teacher and mentor who devoted countless hours to the education and training of the members of our firm, with her legacy being a group of professionals within our firm who are well prepared to serve our clients in her areas of specialization.
Please keep Tese and her family in your thoughts and prayers.
Blockchain is the technology that makes Bitcoin possible and it has been around the edge of my consciousness since Bitcoin came on the scene about ten years ago, but I never really wanted to know more about what it is and how it works until the most recent lettuce recall when experts opined that Blockchain could have identified the source of the contamination and kept lettuce in our stores. How do we get from Bitcoin to lettuce with the same technology? I asked a lot of my very bright friends, many of whom are involved professionally with computers, and not one knew more than I did. So after a trip to the library (where only one book was helpful) and a few Google searches, Ihave a simplistic overview that I can share with you.
For ten years, Capaldi Reynolds & Pelosi partners and employees have been “Going Red for Women” and the American Heart Association (AHA) to help bring awareness to women and heart disease. According to the AHA, cardiovascular disease (CVD) and stroke are the No. 1 cause of death in American women, claiming nearly 400,000 lives each year, or about one death each minute. CVD kills approximately the same number of women each year as all forms of cancer, chronic lower respiratory disease and diabetes combined.
Generally income tax returns are constructed to report business income, and then subtract cost of sales (the cost of producing or purchasing the product being sold) and the expenses of carrying on the business (things like employee wages, rent, and office supplies). There is an overriding provision for businesses that sell cannabis, however. Even though cannabis is legal in certain states, Section 280E of the federal income tax code states that no deduction is allowed for an amount paid or incurred in carrying on a business if the business consists of trafficking in controlled substances. Since marijuana is on the list of controlled substances, no deductions can be taken for the costs of carrying on the business of marijuana sales. Because of this, income tax represents a significant cost for these businesses.
Despite approval of three cannabis bills, including adult use legalization, following a four hour hearing held before the joint session of the New Jersey Senate and Assembly Budget and Appropriation Committees on November 26, 2018, it appears unlikely that marijuana legislation will be voted upon in 2018. December 17, 2018 is the latest voting day of the legislative year and work still remains on gaining consensus on key issues in the bills including the tax rate, expungements and whether the proposed Cannabis Regulatory Commission would be a full-time commission. Work also remains in ensuring the number of votes needed for passage.
Beginning on October 29, 2018 employees in New Jersey may earn up to 40 hours of paid sick leave per year. A benefit year can be defined by the employer and cannot be changed without the approval of the Department of Labor. All New Jersey employers, except governments, are subject to this law. Employers who already have policies in place should confirm that they are in compliance with the new law.
Therese Connell, one of the firm’s Partners and Director of its Estate and Trust department, marks 25 years with the firm this year. She has decided to move to part-time status at Capaldi Reynolds & Pelosi effective August 31, 2018.
Therese has served in her current role since 1999, where she has been integral in managing firm software and internal processes. She joined the Firm in 1993, after working in another local accounting firm. Therese graduated from Immaculata College with a degree in Home Economics.
During her tenure with the firm, she developed the estate and trust work of the Firm into one of its key divisions. Therese is a mentor to a number of the Firm’s professionals and a trusted advisor to many of the Firm’s clients and business partners. She also plays a critical role in helping the Firm develop and maintain its information technology systems as well as relationships with tax and information systems vendors.
“In the 25 years of her tenure with Capaldi Reynolds & Pelosi, Tese has attained the status as one of the area’s premier experts in her field. Her incredible knowledge base, dedication to excellence, and service philosophy have really made an impact,” said Donna Buzby, one of the Managing Partners of Capaldi Reynolds & Pelosi. “Tese is an inspiration to everyone here, and I hope she continues to work with us for many years.”
Capaldi Reynolds & Pelosi today announced that Frank Pelosi, one of the Firm’s Managing Partners and Director of Litigation Support, has decided to retire effective August 31, 2018.
Frank has served in his current role at the Firm since 2000, where he helped oversee its most critical operations and management processes. He joined the Firm in 1971 after graduating from Mount Saint Mary’s College with a degree in Business Administration. He received his MBA from Monmouth University in 1980.
On June 21 of this year, the Supreme Court reached a decision in the South Dakota v. Wayfair case which could have a far-reaching impact on clients with sales and operations in multiple states. Prior to the ruling, case law dating back 26 years to the National Bellas Hess Inc. v. Department of Revenue of Illinois and Quill Corp. v. North Dakota, established the rules for “substantial nexus” used to determine whether or not a business had an obligation to collect and pay sales and use tax to a state taxing authority. The rule, as originally set forth and upheld, called for a seller to have a physical presence (meaning either a physical structure such as a building or warehouse, or a human presence like a sales representative) in order to establish nexus within that state. Under this guideline, a seller with substantial sales, yet no physical presence, in a given state was not required to remit sales tax on goods sold, creating a substantial missed revenue opportunity for state taxing authorities.