Ohio Income Tax: Snowbirds Clipped by Ohio Supreme Court

10/7/2015
Ohio Income Tax:
Snowbirds Clipped by
Ohio Supreme Court
October 7, 2015
Steven A. Dimengo, JD, CPA, MT
3800 Embassy Parkway,
Suite 300
Akron, OH 44333
(330) 258-6460
[email protected]
Richard B. Fry III, JD, MT
3800 Embassy Parkway,
Suite 300
Akron, OH 44333
(330) 258-6423
[email protected]
Ronald F. Wayne, JD
1375 East Ninth Street,
Suite 1700
Cleveland, Ohio 44114
216-615-7349
[email protected]
INTRODUCTION


Importance of “resident” status.
Historic Tests


Common law domicile test.
Bright-line domicile presumption.

The Cunningham decision and how to plan
accordingly.

Estate planning concerns and pitfalls.


Will there be a legislative fix?
Pros / Cons of Ohio and Florida residency
Importance of Residency
 Ohio
resident = Ohio domicile.
 R.C.
5747.24 “bright-line” test.
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10/7/2015
Importance of Residency

Ohio resident:

Taxed on all income.

Credit to extent income tax paid to
another state (limited by Ohio tax
otherwise due).
Ohio Nonresident

Taxed on income earned / sitused to
Ohio (via credit to extent income
earned outside Ohio).

Core situsing provisions.
R.C. 5747.20
R.C. 5747.21
 R.C. 5747.212


Background

Nontaxable Income For Nonresidents
of Ohio:
“Retirement income” (including
payments from certain nonqualified
plans).
 Investment income from intangible
assets (e.g., interest, dividends,
capital gains).
 Non-compete payments
 Non-Ohio business income.

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10/7/2015
Background Pass-Through
Entity (“PTE”) Interest Sale

R.C. 5747.212: Owning ≥ 20% interest in PTE
during 3-year period ending last day of tax year;
gain from sale of interest apportioned to Ohio
using average of PTE’s apportionment ratios for
prior 3 years.


Also applies to C corporations with ≤ 5 owners (or
having a > 50% owner).
Parallel provision for sale of assets (e.g., situs
goodwill).
Residency Historically

For income tax purposes, a resident is
someone domiciled in the state.

Determined by common-law test.

A person may have multiple
residences, but only one domicile.
Common-Law Domicile Test

Focus on intent – very subjective.

A person’s domicile is their permanent
legal residence intended to be used
for an indefinite period, and to which,
the person intends to return when
absent.
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10/7/2015
Common-Law Domicile Test

Presumption that domicile continues
until abandoned.

Taxpayers have burden to establish
change of intent to show
abandonment.
Traditional Domicile Factor
Examples









Voter’s registration
Residence
Business interests
Financial interests (banks, investments, etc.)
Professional relationships (doctor, lawyer, accountant)
Addressed used for official purposes (tax returns,
driver’s license, motor vehicle registration, etc.)
Participation in social, religious and civic organizations
Schools
Burial plots
Difficult to Navigate
Davis v. Limbach, BTA No. 89-C-267 (1992).






Taxpayer maintained business interests in Ohio and used
business address for mailing purposes.
Separated from wife, who remained in Ohio.
Established abode in Florida; no Ohio abode.
Florida banks, voter’s registration and driver’s license.
BTA found that taxpayer was not domiciled in Ohio because he
had no place of abode here.
“There is no bright line test stating exactly which factors are
necessary for an individual to effectively change his domicile.”
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10/7/2015
Bright-Line Test Enacted

Series of presumptions based upon
Ohio contact periods. R.C. 5747.24.
 “Contact period” occurs when away
overnight from the individual’s non-Ohio
abode and, while away, spends any part of
two consecutive days in Ohio.

Does not apply to part-year residents.
Irrebuttable Presumption


Bright-line residency elements:

Non-Ohio abode;

Satisfy contact period test; and

File Non-Ohio Residency Affidavit (Form IT DA).
“The presumption … is irrebuttable unless the
individual fails to timely file the [Affidavit] or
makes a false statement.” R.C. 5747.24(B).
Relaxing of
Contact Period Test
Originally, no more than 120 Ohio
contact periods.
 2007 – Fewer than 183 Ohio contact
periods.
 2015 – No more than 212 Ohio
contact periods.

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10/7/2015
Tax Commissioner Rule
Ohio Admin. Code 5703-7-16
Factors not to be considered:






Financial institutions, lenders, investment brokers
Professional service providers (e.g., doctors, lawyers,
accountants)
Civic or charitable organization membership
Passive business interests
Schools
Burial plots
Relevant factors:



Ohio contact periods
Comparison with activities in previous years
Any other factor
Cunningham

<183 Ohio contact periods.

Tennessee home entire year.

Timely filed affidavit.
Contradiction

Ohio homestead exemption.


Domicile affidavit.


Principal residence under penalties of
perjury.
Non-Ohio domicile entire year under
penalty of perjury.
Agreed Ohio common law domicile.
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10/7/2015
BTA

Accuracy of taxpayer’s statement with
reference to contact periods and nonOhio home.
Supreme Court

Common law domicile.


Intent to reside indefinitely.
Old domicile continues until new one
established (i.e., need abandonment).
Supreme Court

Bright-line statute does not affect
substantive law of domicile.

R.C. 5747.24 incorporates/preserves
common law domicile.
7
10/7/2015
Supreme Court
Taxpayer statement can be false if not
supported by common law domicile.
 Tax Commissioner need only identify
“substantial basis” for rejecting claim
of non-Ohio domicile.
 Contradictory statement in homestead
exemption.

Dissent

False statement confined to contact
periods / non-Ohio abode.

Necessary to provide certainty.
Post Cunningham

Proposed Legislation.
8
10/7/2015
Proposed Legislation

Accuracy of affidavit tied to contact periods
/ non-Ohio abode entire year.

Common law domicile irrelevant.

Clarification of existing law, reflecting intent
prior to Cunningham (i.e., refund claims
allowed).
Planning
Focus on common law domicile
calendar year prior to “contact period”
calendar year.
 Eliminate Ohio home?
 Planning with respect to income
receipt.

Plan
Plan
 Plan


Moving to Florida?
Estate Planning and
Other Considerations
You make the call.
9
10/7/2015
10
10/7/2015
Florida:
No estate tax.
No income tax.
Unlimited Homestead
Exemption
Real Property Homestead tax
exemption--$50K + 3%
appreciation
Ohio:
No estate tax
Income tax up to 5.39%
Homestead Exemption limited to
$132,900
Real property Homestead Tax
Exemption-$25K (and less than $30K
AGI after 2014
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10/7/2015
Ohio Estate Planning
Advantages
Ohio Legacy Trusts=DAPT
Ohio Wholly Discretionary Trusts.
Springing Powers of Attorney
Shorter S/L on Breach of Fiduciary
Duties.
How to Memorialize Florida
Domicile
Steps to Take to Be Recognized as a
Floridian
 File a declaration of domicile at the
county courthouse. Send a copy to
the appropriate taxing authority in
your former state.
How to Memorialize Florida
Domicile - Continued
Obtain a Florida driver’s license.
 Register to vote (and vote) only in
Florida.
 Apply for the homestead exemption if
you own a residence in Florida.

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10/7/2015
How to Memorialize Florida
Domicile - Suggestions






Transfer your out-of-state accounts to a bank in Florida.
Arrange for direct deposits such as Social Security into
your Florida bank account.
Open a safe-deposit box at a Florida financial institution..
Move personal items with significant monetary value to
Florida.
Change the address of brokerage accounts to your new
Florida address.
move your account to the Florida office of your existing
national brokerage firm or to a local brokerage firm.
How to Memorialize Florida
Domicile - Suggestions



File federal income tax returns using your Florida
address. File a final state income tax return as a part-year
resident through the day you moved from your former
state. Then, if you receive no income from your former
state, stop filing state income tax returns. If you still
receive income from your former state, file a nonresident
income tax return for that portion of your income.
Declare Florida your legal residence when you make or
revise your will.
Use your Florida address in all business and social
correspondence.
How to Memorialize Florida
Domicile - Suggestions





Identify Florida in written and oral communication as your
permanent home.
Document the days you spend in every state, ensuring
that you spend more time in Florida than any other state.
Register your vehicles in Florida.
Notify credit card companies and creditors of your new
address.
Notify insurance companies of your new address and that
your vehicles and valuable personal property are now
located in Florida.
13
10/7/2015
How to Memorialize Florida
Domicile - Suggestions





Become active in Florida community or political
organizations, religious institutions or clubs. Resign from
private clubs in your former state or convert your
memberships to nonresident memberships.
Become a patient of a Florida doctor and dentist and
have your records transferred to them.
Purchase a cemetery lot or crypt in Florida.
If you have a professional or occupational license and
intend to continue working, obtain a Florida license.
Change the address on your passport
Your Ohio Will is Valid
but….
Florida has self-proving Wills
Your Ohio power of attorney is valid
in Florida but…..
Springing powers not recognized in
Florida.
Hot Powers need to be initialed.
Certifications of Powers of Attorney
similar in both states
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10/7/2015
Your healthcare documents are valid
in every state, but…
Health Care professionals more
conversant with their own forms.
Create separate documents for both
states.
Different anatomical gift forms.
Your Ohio Trust is Valid in Florida
and Every State, but…



Consider change of situs and choice of law.
Should be executed with same formalities as a Florida
Will.
Florida does not have DAPT or statutory wholly
discretionary trusts.
No Florida Residency Statute?

Short of year-round residency, there is
no bright line test for determining
whether someone is a resident of
Florida.
15
10/7/2015
Thank You!
Steven A. Dimengo, JD, CPA, MT
BUCKINGHAM, DOOLITTLE & BURROUGHS, LLC
3800 Embassy Parkway, Suite 300
Akron, OH 44333
(330) 258-6460
[email protected]
Ronald F. Wayne, JD
BUCKINGHAM, DOOLITTLE & BURROUGHS, LLC
1375 East Ninth Street, Suite 1700
Cleveland, Ohio 44114
P: 216-615-7349
[email protected]
Richard B. Fry III, JD, MT
BUCKINGHAM, DOOLITTLE & BURROUGHS, LLC
3800 Embassy Parkway, Suite 300
Akron, OH 44333
(330) 258-6423
[email protected]
16
BAR JOURNAL
FEATURE
If You Live in
Ohio, You Are
Darned Lucky!
Ten Good Reasons Why Ohio Is a
Great State for Estate Planning
By Ronald F. Wayne
1. Ohio no longer has an estate tax and never
had a gift tax.
As of January 1, 2013, Ohio joined the ranks of
thirty other progressive states that have no estate
or inheritance tax. Prior to repeal, this nasty, final
tax was payable if the value of the net estate was
over $338,000. A seven percent rate applied to
any net taxable value over $500,000 so an estate
of $2,000,000 was reduced by about $114,000 in
Ohio estate tax liability. Only very small estates,
surviving spouses and charities escaped the wrath
of this tax. Ohio’s generation-skipping transfer
tax has also been eliminated. Ohioans no longer
need to flee to other states or count the number of
days spent out of Ohio to avoid this tax.
2. Ohio’s new Power of Attorney statute
protects the elderly and disabled better than
ever.
Powers of Attorney executed after March 22,
2012, must specifically list any of the seven “hot
powers” if they are to be available to the Agent.
These “hot powers” are the ability of the agent to:
(1) Create, amend or terminate a trust; (2) Make
a gift; (3) Change rights of survivorship;
(4) Change a beneficiary designation;
(5) Delegate authority; (6) Waive the right to be
a beneficiary of a joint and survivor designation;
and (7) Exercise fiduciary powers.
The statute also permits interested parties
to conduct a swift, meaningful and courtsupervised inquiry into the activities of the Agent
before all of Principal’s assets are dissipated.
Interested parties include: (1) The principal or
the agent; (2) Another fiduciary acting for the
principal; (3) Health-care surrogates; (4) The
principal’s spouse, parent or descendant; (5) A
presumptive heir; (6) A person who has a
financial interest in the principal’s estate; (7) A
governmental agency that protects the principal;
(8) The principal’s caregiver; (9) A person asked
to accept the power of attorney.
These two provisions are designed to curb
past abuses of Powers of Attorney by bad actors
using generic powers without supervision to
feather their own nests. Powers executed before
the effective date of the Act are still valid, but
should be updated to make sure that only
necessary and appropriate powers are available
to the Agent.
3. The Ohio Trust Code provides
comprehensive guidance.
Prior to the enactment of the §5801 of the
Ohio Revised Code, it was difficult for lawyers
in Ohio to provide definitive advice regarding
the creation, administration, reporting,
modification and termination of trusts.
Under the Ohio Trust Code, practitioners,
courts and all parties to Trusts have a
comprehensive framework to address all
aspects of Trust administration. Divergent local
practices and inconsistent court rulings have
been replaced by this compendium of Ohio
trust law. As a result, Ohio administrations are
crisper and cleaner. This makes Ohio a more
attractive location for trust administration,
resulting in the retention of assets in Ohio and
other economic benefits.
4. Ohio’s Decanting Statute provides another
tool to fix broken Trusts.
Ohio is one of only fourteen states with decanting
statutes. §5808.18 permits the transfer of assets
from a less then optimum Trust to a more
favorable Trust to accomplish desired objectives.
Decanting is easiest with Trusts that give
Trustees absolute power to make distributions
of principal. §5808.18(B) may be used where a
Trustee has authority to distribute principal to
or for the benefit of one or more beneficiaries
pursuant to an ascertainable standard.
§5808.18(C) discusses limitations on the
provisions of the receiving Trust which may
not modify or reduce the current right of a
beneficiary to mandatory distributions.
The new Trust may include a spendthrift
provision, grant beneficiaries a power of
appointment, divide or combine trusts, change
a trust’s governing law, remedy tax problems,
change administrative provisions and/or name
a Trust protector who can remove a Trustee
under certain circumstances. When decanting is
added to Ohio’s existing remedies of Private and
Judicial Settlement Agreements, Common Law
Settlement and Release Agreements and Judicial
Reformation, Ohio becomes a leader among
states that permit Trust modification to adapt
to changing circumstances or correct scrivener
errors.
5. Ohio’s Legacy Trust may be the best
Domestic Asset Protection Trust in the
Country.
Since March 27, 2013, individuals may create
an irrevocable Legacy Trust utilizing an Ohio
qualified Trustee. The assets of the trust are
generally exempt from creditors’ claims yet the
creator of the trust can retain certain rights to
trust principal and interest during the term of
the Trust. The Trustee may be guided by a purely
discretionary standard or according to another
permissible standard in the trust instrument but
not an ascertainable standard. The Settlor may
retain the power to veto distributions and invade
Trust principal up to 5% annually. During life,
the grantor may remove and replace a trustee or
© 2015 Cleveland Metropolitan Bar Association. Reprinted with permission.
trust advisor. Upon death, the grantor can have a
non-general power of appointment.
If a transfer into the Trust is not a fraudulent
conveyance, creditors are barred from seeking
recovery against the Trust assets after, at
the latest, eighteen months from a transfer
of property into the trust. This creditor
protection does not apply to child support
and, in some cases, alimony obligations. If
properly drafted and funded, the Legacy
Trust can provide some protection when a
Prenuptial Agreement is unobtainable.
6. Ohio’s LLC Statute provides enhanced asset
protection.
As of May 4, 2012, the Ohio Limited Liability
Company Act provides that a charging order
is the exclusive remedy of a judgment creditor
against an LLC member. Prior Ohio law was
unclear as to whether a judgment creditor had
additional remedies to foreclose on a member’s
interest. Unlike Florida’s Single Member LLC
Statute, Ohio law is now eminently clear that the
underlying assets of the LLC are not available to
satisfy creditors’ claims.
A charging order only directs that any
distributions intended for the member will
instead be paid to the judgment creditor. LLC
managers can often defer actual distributions
for indefinite periods of time, and even
distribute phantom income. Both of these
factors create an atmosphere for negotiation
during which the creditor’s claims may be
substantially compromised.
7. The Ohio Probate Code continues to
improve.
Despite the many probate avoidance devices
available to Ohioans today, families who do
no planning default into probate. Fortunately
and systematically, the Ohio Probate Code has
been amended. Deadlines have tightened and
administrations have become more streamlined
over time. Beneficiaries enjoy increased
transparency and are not at the mercy of dilatory
executors in the inventory, appraisement or
distribution of assets.
Ohio law provides flexibility in choosing the
optimal form of administration ranging from
instantaneous summary administrations, to
releases of assets without administration, to full
administrations. Practitioners have the discretion
to choose formal administration even if the
probate assets are small but the need for flexibility
and a duly appointed fiduciary are great.
Beneficiaries are permitted to examine
executors under oath and review their activities
during the course of a probate administration
to make sure that assets are properly protected,
invested and distributed as promptly as possible.
8. Ohio’s creditors’ claim statute in probate
administrations protects decedents’ estates.
Ohio law requires that most claims against an
estate must be presented to the administrator
within six months of the decedent’s death,
not six months after the appointment of the
administrator. Most other states also require
a formal publication for creditors in order
to commence the statute of limitations on
claims. Ohio’s Revised Code §2117 applies to
“claims arising out of contract, out of tort, on
cognovit notes, or on judgments, whether due
or not due, secured or unsecured, liquidated or
unliquidated.”
It is the responsibility of the creditor to
file a timely claim and, if necessary, have an
administrator appointed within the six month
period so that the claim can be properly
presented. Even though an individual who
is later appointed as administrator receives a
notification of claim within the six month period,
this is not good enough. Even valid claims which
do not meet the presentation requirements need
not be paid by the administrator.
9. Ohio’s Transfer and Payable on Death
Statutes avoid pitfalls associated with joint
property.
The advantage of utilizing a TOD Affidavit
for Ohio real estate is that the owner/affiant
remains the sole owner of the property and,
therefore, need not worry about creditors’
claims or judgment liens against a joint tenant.
Only if the affiant owns the real estate on the
date of her death does the Transfer on Death
beneficiary receive an interest in the property.
Prior to death, the affiant is free to sell to dispose
of the property without the approval of the TOD
beneficiary.
Ohio also permits the registration of bank
accounts in payable on death form with the
same advantages as those stated above for real
property.
Finally, Ohio permits transferrable on
death designations for other intangible assets,
including publically-traded or closely-held
stocks, bonds and other securities. The proper
utilization of these devices allows for extremely
flexible estate planning opportunities in Ohio
not available in other states, including Florida.
10. Continuing cooperation between local and
state Bar Associations and the Ohio legislature
benefits Ohio citizens.
The Ohio State Bar Association and many
local Bar Associations, including the CMBA,
communicate and cooperate with Ohio’s
legislative branches in the best interest of
Ohioans. Well-intentioned and dedicated
members of the Bar devote significant time and
intellect to reviewing, updating and proposing
legislation to make Ohio a more attractive place
to live and work. The Ohio State Bar Association
Certification Program provides a reliable way for
consumers to find well-qualified lawyers in their
areas of need without resort to the whims of
search engine optimization or online hyperbole.
For these reasons and many others, if you live
in Ohio, you’re darned lucky!
Ronald F. Wayne is a partner at
Buckingham,
Doolittle
&
Burroughs, LLC. He is licensed in
Ohio, Florida and New Jersey. Mr.
Wayne is a Certified Specialist in
the practice of Estate Planning, Trust and
Probate Law. He has been a CMBA member
since 1978. He can be reached at (216) 615-7349
or [email protected].
© 2015 Cleveland Metropolitan Bar Association. Reprinted with permission.
Steven A.
Dimengo
Partner | Akron
p | 330.258.6460
f | 330.258.6559
[email protected]
Assistant | [email protected]
AREAS OF PRACTICE
Taxation
Business
Real Estate & Construction
I am an Ohio tax attorney serving as the first call my clients make when
faced with a tax challenge. The more complicated the challenge, the
more I can help you and your company.
Typically, my clients own or manage a business. I work directly with
clients to save them substantial amounts of money and resolve even
their most complicated tax and general business issues. My clients
think of me as their trusted advisor that, while valuable, is so hard to
find.
I concentrate my practice on transactions with federal tax implications
involving Ohio sales, income and commercial activity taxes. This
includes sales of real property, the acquisition/sale of businesses and
comprehensive Ohio tax audits and planning. I share my knowledge
through following and creating key developments, speaking, and
writing to both legal and non-legal audiences. My experience helps me
achieve the best possible results as efficiently as possible for each and
every client.
bdblaw.com
Experience
Serves as department head of the Taxation Section of the Business Practice Group (also served 1995-2006)
Practices primarily in consultation and representation with respect to federal, multistate and Ohio tax law
matters
Engaged to structure proposed transactions in a manner to obtain optimum tax minimization
Involved in representation before the Ohio Tax Commissioner, Ohio Board of Tax Appeals and the Ohio
Supreme Court, as well as before the Internal Revenue Service
Served as Business Practice Group Leader
Served as vice president, secretary and treasurer of the firm’s board of managers
Joined the firm as an associate in 1989; elected partner in 1994
REPRESENTATIVE MATTERS/REPORTED CASES
Marc Glassman, Inc. v. Levin, 119 Ohio St. 3d 254, 2008-Ohio-3819
Stein, Inc. v. Tracy, 84 Ohio St. 3d. 501 (1999).
WCI Steel, Inc. v. Testa, 129 Ohio St. 3d 256, 2011-Ohio-3280.
Crown Communications, Inc. v. Testa, 2013-Ohio-3126.
Funtime, Inc. v. Zaino, 105 Ohio St. 3d 74 (2004).
The Dannon Company Co., Inc. v. Tracy, Ohio BTA Case No. 97-M-233 (September 11, 1998).
General Electric Credit of Tennessee v. Tracy, Ohio BTA Case No. 95-K-221 (June 27, 1997).
E.G. Baldwin & Associates, Inc. v. Tracy, Ohio BTA Case No. 95-K-222 (May 30, 1997).
Express Packaging, Inc. v. Limbach, Ohio BTA Case No. 89-K-22 (September 18, 1992).
U.C. Industries v. Limbach, Ohio BTA Case No. 89-J-1070 (August 7, 1992).
WCI Steel, Inc. v. Testa, Ohio BTA No. 2005-A-1565 (December 28, 2012).
Reiter Dairy, Inc. v. Limbach, Ohio BTA No. 90-Z-503 (January 15, 1993).
Haberman v. Tracy, Ohio BTA 91-A-1639 (March 19, 1993).
Heartland Education Community, Inc. v. Testa, Ohio BTA No. 2012-277 (September 3, 2014).
Education & Admissions
The University of Akron Law School, Akron, Ohio (J.D., cum laude, 1986)
The University of Akron, Akron, Ohio (M.A., 1986)
The University of Akron, Akron, Ohio (B.A., magna cum laude, 1983)
Certified Public Accountant (1987)
Admissions
Ohio Bar
U.S. District Court
U.S. Tax Court
Awards & Honors
Listed in Best Lawyers in America® (2003-2016)
Selected for inclusion in Ohio’s Super Lawyers® (2004-2015), as voted by his peers
Martindale-Hubbell Peer Review Rating of AV® Preeminent™, which is the highest possible rating in both legal
and ethical standards as established by confidential opinions from members of the Bar.
Selected for inclusion in Ohio’s Super Lawyers Business Edition® for Tax Law (2014)
Recipient: Distinguished Alumni Award from the Archbishop Hoban High School Alumni Association (2013)
bdblaw.com
Named Akron Best Lawyers® ‘Tax Lawyer of the Year’ (2012)
Listed in Super Lawyers Corporate Counsel Edition® for Tax Law (2009)
Listed in Northern Ohio Live – Ohio’s Top Lawyers (2003)
Listed in Inside Business Magazine as a Leading Lawyer in Northeast Ohio in Tax Law, as voted by his peers
(2001)
Recipient: Dr. Frank L. Simonetti Distinguished Alumni Award from the University of Akron College of Business
(2015)
Professional & Civic Involvement
Adjunct Professor: The University of Akron Master of Taxation Program (State and Local Tax)
Secretary and Trustee: Archbishop Hoban High School
Past Affiliations
Appointed: Ohio Tax Commissioner’s Advisory Council
Associations
Member: Taxation Section: Akron Bar Association
Member: American Bar Association
Member: Ohio State Bar Association
Chair, Taxation Section, including Sales & Use Tax Subcommittee: Ohio State Bar Association
bdblaw.com
Richard B. Fry III
Partner | Akron
p | 330.258.6423
f | 330.258.6559
[email protected]
Assistant | [email protected]
AREAS OF PRACTICE
Taxation
Business
Real Estate & Construction
As a business tax attorney, I represent small to mid-size business
owners and managers who seek my trusted advice on significant
transactions and difficult challenges facing their businesses. I advise
my clients on state and local tax issues, counsel clients on commercial
and real estate transactions, and resolve state and local tax
controversies on behalf of my clients.
I have vast experience with Ohio and multistate tax issues, including
Ohio sales/use tax, commercial activity tax, and personal income tax
audits, appeals and planning. Because of my tax background, I often
advise clients on the business and tax implications related to their
corporate structure and significant transactions.
My ability to understand my clients' business and tax objectives, and
help them achieve those objectives in a practical manner without
disrupting commercial operations, is one of the many benefits I can
offer you and your business.
bdblaw.com
Experience
Works in the Business Practice Group and has experience in a wide variety of areas, including federal and state
tax matters, mergers and acquisitions, real estate, litigation and business organizations
Focuses on state and local tax matters, including Ohio tax controversies, sales and use tax and multistate tax
planning
Joined the firm as an associate in 2008; was elected partner in 2015
REPORTED CASES
Crown Communications, Inc. v. Testa, 2013-Ohio-3126.
Heartland Education Community, Inc. v. Testa, Ohio BTA No. 2012-277 (Sept. 3, 2014).
Education & Admissions
The University of Akron School of Law, Akron, Ohio (J.D., summa cum laude, 2008)
The University of Akron, Akron, Ohio (M.A., 2008)
Kent State University, Kent, Ohio (B.B.A., cum laude, 2003)
Mount Union College, Alliance, Ohio (B.A., cum laude, 1992)
American Junior Year in Heidelberg Program, Heidelberg, Germany (1990)
Admissions
Ohio Bar
Co-Chair: Sales & Use Tax Subcommittee of the Ohio State Bar Association, Taxation Committee
U.S. District Court, Northern District of Ohio
U.S. Tax Court
Awards & Honors
Recipient: Judge Harold and Jeanette White Scholarship (2006-2007)
Recipient: Ohio State Bar Association, Labor and Employment Law Student Achievement Award
Professional & Civic Involvement
Member: Akron Tax Club
Member: Boys & Girls Club of the Western Reserve, Aspire! Committee
Member: Boys & Girls Club of the Western Reserve, Marketing Committee
Associations
Member: Akron Bar Association
Member: American Bar Association
Member: Ohio State Bar Association, Taxation Committee
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Ronald F. Wayne
Partner | Cleveland
p | 216.615.7349
f | 216.621.5440
[email protected]
Assistant | [email protected]
AREAS OF PRACTICE
Trusts & Estates
I am a trusts and estates attorney with a focus on estate planning,
probate, and elder law. I assist my clients with the efficient transfer of
wealth from generation to generation, business succession plans, and
probate and trust litigation matters.
I listen closely to individuals’ and families’ needs and desires so I can
protect the assets they have worked hard to accumulate. I
vigorously defend my clients against the Internal Revenue Service and
minimize their income, estate or gift tax liabilities. For aging clients, I
work to ensure your assets are not ravaged by long-term care costs.
For parents of children with dependencies, disabilities, or financial
issues, my goal is to ensure that your children have a secure financial
future. For business owners, I assist you in selling your business or
transferring it to subsequent generations.
I design and implement estate plans based upon what is of importance
to you. Simply put, I am here to protect your wealth, your business and
your family.
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Experience
Administers complex trusts and probate estates in Ohio
Designs and implements multigenerational family estate and business succession plans
Represents individuals before the Internal Revenue Service in estate, gift and personal income tax controversies
Certified by the Ohio State Bar Association as a Specialist in Estate Planning, Trust & Probate Law under
guidelines established by the Supreme Court of Ohio’s Commission on Certification of Attorneys as Specialists
REPORTED CASES
In re Estate of Hernton, 164 Ohio App. 3d 306 (9th Dist., Lorain County 2005)
Education & Admissions
Cleveland-Marshall College of Law, Cleveland, Ohio (J.D., cum laude, 1978)
Cleveland State University, Cleveland, Ohio (B.A., magna cum laude, 1974)
Admissions
Ohio Bar
New Jersey Bar
Florida Bar
U.S. District Court, Northern District of Ohio
U.S. Tax Court
United States Supreme Court
Awards & Honors
Listed in Best Lawyers in America® (2010-2016)
Recognized in Best Lawyers Business Edition® for Trusts and Estates Law (2015)
Selected for inclusion in Ohio’s Super Lawyers® (2004-2015), as voted by his peers
Martindale-Hubbell Peer Review Rating of AV® Preeminent™, which is the highest possible rating in both legal
and ethical standards as established by confidential opinions from members of the Bar
Professional & Civic Involvement
Former Delegate: Estate Planning Council of Cleveland
Member: University Hospitals Planned Giving Advisory Committee
Member: The Lawyers Guild of the Catholic Diocese of Cleveland
Member: St. Basil the Great Parish Finance and Endowment Committees
Member, Board of Directors: Society of Financial Services Professionals
Member: Estate Planning Advisory Council of Case Western Reserve University
Lifetime Charter Member: Elder Care Matters Alliance
Associations
Member: Cleveland Metropolitan Bar Association, Probate and Estate Planning Section
Member: Florida Bar Association, Real Property, Probate & Trust Section
Member: Ohio State Bar Association, Elder Law Committee
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