Happy Thanksgiving from The Gordon Company!

A fun thing to do at Thanksgiving is to give a little quiz around the dinner table to see who knows the most about the very first Thanksgiving in America. Just for fun, here are 10 questions you might want to ask your guests, with the answers bolded:

Thanksgiving week is the most traveled time in the United States, and it will likely continue to be this year, despite COVID. Even with all the challenges each of us has faced in the midst of a lingering pandemic, there is still so much to be thankful for. Gathering with family and friends re-unites our spirits and brings much hope for the future.

A fun thing to do at Thanksgiving is to give a little quiz around the dinner table to see who knows the most about the very first Thanksgiving in America. Just for fun, here are 10 questions you might want to ask your guests, with the answers bolded:

1) The Pilgrims landed at what they called Plymouth Rock on September 20th, 1620, which is now part of what state? Massachusetts

2) We call them Pilgrims, but what was the name of their actual religious group? a) Lutherans, b) Puritans, c) Methodists, or d) Baptists?

3) The Pilgrims learned to plant corn from the native Indians. What did they plant with the corn to ensure a healthy crop? a) a dead fish, b) vegetable scraps, or c) dried leaves?

4) Which utensil did the Pilgrims NOT eat with? a) a fork, b) a knife, c) a spoon, or d) their fingers?

5) You probably know that the day after Thanksgiving is called Black Friday. What is the Monday after Thanksgiving now called? Cyber Monday

6) A female turkey is called a hen and she chuckles. A male turkey gobbles, and he’s often called a gobbler. By what other common name is a male turkey called? Tom

7) For you nutritionists out there, which has more protein? Chicken, Beef, or Turkey?

8) For you sports fans, which NFL team always plays a game on Thanksgiving? a) the Lions, b) the Bears, c) the Chargers, or d) the Rams?

9) For you cooks out there, what is the best place to put the thermometer in a turkey? a) the breast, b) the back, c) the leg or d) the thigh?

10) The first Thanksgiving parade was sponsored by a famous department store that was well-known for its window displays. Was it a) Dillards, b) Gimbels, or c) Saks?

Bonus Question: We all know that Thanksgiving falls on the 4th Thursday of November, so what is the earliest numerical date that Thanksgiving can actually fall on? The 22nd

Have fun around the dinner table and Happy Thanksgiving from all of us at The Gordon Company!!!

Legislative Update: Tax Implications Of The Infrastructure And Jobs Act

Last week we cautioned jewelers about possible new tax laws taking effect next year that can affect their business. Two in particular warrant immediate attention, before the end of 2021: the Employer Retention Credit (ERC) that has expired, and potential changes in the estate tax exemption.

Steve Merdinger, CPA

Pompano Beach, FL—Last week we cautioned jewelers about possible new tax laws taking effect next year that can affect their business. Two in particular warrant immediate attention, before the end of 2021: the Employer Retention Credit (ERC) that has expired, and potential changes in the estate tax exemption.

We asked Steve Merdinger, (image) CPA and managing partner of KMR LLP, a New York-based certified public accounting and advisory firm with many clients in the jewelry industry, to explain some of the key components of these issues.

Ira Bergman: What do jewelers need to do regarding the Employer Retention Credit passed last year?

Steve Merdinger: The House of Representatives passed a trimmed down Infrastructure Bill, known officially as the Infrastructure Investment and Jobs Act. The legislation already passed the Senate and will now be sent to President Biden for his signature. 

Though the bill contains very few tax provisions, one significant item that affects many of you is the ERC. The Act effectively ends the Employer Retention Credit program for most employers at the end of the third quarter. 

Created in 2020’s CARES Act and expanded (and enhanced) through 2021, the ERC generally provided eligible employers a refundable credit of up to $7,000 of qualified wages per employee per quarter (for 2021). Following this legislation, most employers will only be eligible for the credit on wages through September 30, 2021. Be sure that you have applied for all available credits through September 30 and consider amending applicable tax returns if you have failed to apply when applicable.

Bergman: What changes might be made in the estate tax exemption?

Merdinger: The estate and gift tax exemption of $11.7 million is a historically high amount. It was a temporary increase and is set to expire at the end of 2025—at which time the exemption will revert to $5 million (before required adjustments for inflation).  

Various tax proposals put forth in Congress, however, would accelerate that reduction in the exemption amount. While it is not clear whether such proposals would be enacted, if they were the professional consensus estimates the exemption would be lowered to +/- $6 million ($12 million combined with a spouse). We recommend those with significant exemption capacity above those figures (under current law), to consider gifting strategies prior to the end of 2021, enabling you to maximize the use of your current exemption. Otherwise no action on your part would become a “use it or lose it” situation. 

It is critical for you to discuss your individual circumstances with a professional to determine what planning you may wish to consider prior to the end of 2021 in order to take advantage of the currently advantageous exemption.

Ira Bergman, President at GordonCo

Bergman: What other changes impact jewelers?

Merdinger: We want to again remind you of the deductibility of certain restaurant-provided business meals in 2021 and 2022. As a temporary exception to the 50% limit on deductibility of certain business meals, tax legislation in December 2020 provided for a new 100% deductibility of amounts paid or incurred in 2021 and 2022 for “food or beverages provided by a restaurant” for business purposes. 

Under IRS guidance, a restaurant is a business that prepares and sells food and beverages to retail customers for immediate consumption. Restaurants do not include businesses that sell primarily pre-packaged food or beverages (such as grocery stores), nor do they include specialty food stores, liquor stores, drug stores, convenience stores, newsstands, kiosks, or vending machines. Significantly, the IRS indicated that the food or beverages purchased from qualifying restaurants do not need to be consumed at the restaurant; take-out meals would qualify. Under relevant Treasury regulations, the cost of food and beverages generally includes delivery fees, tips, and sales tax. 

Note that the general rules for deductibility of business-related meals continue to apply: the food and beverage expense must be business-related, not lavish or extravagant, and the taxpayer or an employee of the taxpayer must be present.   

Are You Prepared for Possible Tax Law Changes Next Year?

Pompano Beach, FL—I’m not a tax expert, but I stay up on legislative issues like you probably do. 

By Ira Bergman, President, The Gordon Co.

Pompano Beach, FL—I’m not a tax expert, but I stay up on legislative issues like you probably do. 

From the financial people I have been talking to, I hear there is a high likelihood that Congress may pass new tax laws that could affect many business owners in our industry. 

Many of us have spent a lifetime working hard to build our businesses, create some degree of wealth, and provide for ourselves and our heirs in a way we see fit. So we need to be aware of how to protect our assets, enjoy a well-deserved retirement or semi-retirement, and make the last couple decades of our lives the very best.

In his new book Family Business Succession Planning, author Bill Boyajian discusses various forms of business transition: to a son or daughter or other family member, to a long-time seasoned employee, to an outside party who buys you out, or even through a retirement or going-out-of-business sale. In each of these instances, you may wish to conduct a business valuation, which can be helpful not only in knowing what your business is worth, but in considering various forms of gifting or buyout to minimize your tax liability.

If you are currently in a transition situation, or will soon be in one, it is vital that you consider the possible tax consequences right now. No one has a crystal ball on decisions that may come about next year regarding corporate taxes, personal income taxes, the often talked about “wealth” tax, or changes to limits on the transfer of monies to heirs. 

I urge jewelers in every facet of our trade to seek the advice of tax professionals to see how any possible changes may impact your business and/or retirement planning. 

My advice is to be assertive and get the help you may need through your CPA or tax attorney. There is a sense of urgency to this so it will be wise for you to understand the possible tax ramifications that may come about and act sooner rather than later to plan for them accordingly.

Part II Article Here: Legislative Update: Tax Implications Of The Infrastructure And Jobs Act

EXCITING OPPORTUNITY FOR RETAIL JEWELERS!

This is an incomparable time we live in—one with exciting and unique opportunities. Right now, with the boom in the jewelry industry, there are countless prospects for you and your store. You may have not thought about it this way previously, but let us explain.

This is an incomparable time we live in—one with exciting and unique opportunities. Right now, with the boom in the jewelry industry, there are countless prospects for you and your store. You may have not thought about it this way previously, but let us explain.

“Imagine the last ten days before Christmas and multiply it by SIX TIMES.” This was a statement made by one of our valued clients during the last holiday season. We believe results like these will be seen during this coming holiday season as well.

If business is down, we’re speaking to you. 

If sales are up, we can be your trusted partner as well. 

Now is the time to capitalize on a never-before-seen possibility for your business. Conducting a high-impact sale event with The Gordon Company benefits jewelers in numerous ways. One of those major ways includes bringing in top-of-the-line inventory into your store from a wide array of vendors that we have long-standing relationships with. 

We’d like you to see beyond just the couple of months that we will be with you running your sale, however, and here are some of the long-term advantages of a Gordon Company sale:

  • An Inventory Reduction Sale will rid you of unwanted, aged inventory in order to purchase fresh, new product for your clientele to enjoy far after we leave your store, ultimately boosting your revenues
  • A Retirement Sale will help you retire in style and provide you with the financial peace you always dreamed of
  • A Store Closing Sale can allow you to close an unproductive store, to provide you with the cash flow to remodel your flagship store in the way that you’ve been wanting to but never had the money for
  • A Cash Raising Sale will raise the funds needed to market your business in the manner that you know you should be in order to increase customer traffic, as well as potentially upgrading your online selling platform to increase internet sales also

So, as you can see, the possibilities are endless—and these are just a handful of the numerous sale promotions we run for our clients. However, you can’t afford to wait. Now IS the time to make the decision to take on The Gordon Company as your strategic partner for the major sale event that WILL be the Sale of your Store’s Lifetime!

Sincerely,

Jeff Gordon, CEO