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Campolo’s presentation style highlighted in “Everything Is a Negotiation!”

Posted: February 2nd, 2018

By Arthur Sanders

Whether you’re negotiating the release of hostages or negotiating with your toddler to try a new food, the
common thread is that all negotiations are based on human interaction. To succeed in any negotiation, you
must understand not only the basic building blocks that all negotiators need, but also the psychological and
emotional principles at play and how to use them to your advantage.

On January 9, 2018, we were treated to a dynamic presentation by Joe Campolo, Esq., Managing Partner of
Campolo, Middleton & McCormick, a premier law firm with offices in Ronkonkoma and Bridgehampton.
From serving in the United States Marine Corps, to representing clients in the courtroom and boardroom, to
advocating for Long Island through his community involvement, Joe has a wealth of experience in negotiation
strategy that he eagerly shared with the crowd.

Joe’s presentation focused on negotiation as an exercise in managing risk and tension. He walked us through
typical thoughts while listening at the negotiation table (ranging from the defensive to the argumentative) and
how we can “listen better” by acknowledging our adversary’s spoken and unspoken point of view.
The conversation then shifted to the emotional side of negotiation, as Joe shared tips for negotiating to win.
Strategies in his toolbox include building rapport with your adversary and challenging the negative emotions
that are bound to come up during a protracted negotiation. He also shared how to avoid being manipulated
and how to identify more win-win possibilities (as opposed to win-not lose possibilities).

Joe’s unique presentation style was well received and was a great way for our chapter to kick off 2018.

March 29 – CMM Sponsors Girl Scouts of Suffolk County Panel on Building Women Leaders

Posted: January 31st, 2018

Event Date: March 29th, 2018

 

 

 

 

 

Join us in celebrating the 50th anniversary of Girl Scouts of Suffolk County at its first annual Making An Impact panel on March 29. CMM Partner Christine Malafi serves on the GSSC Board of Directors and has helped put together a panel of dynamic female business leaders who will share their personal experiences and insights about their rise to the top.

Panelists include:
– Terri Alessi-Miceli, President, HIA-LI
– Teresa Ferraro, President, East/West Industries
– Davina P. Durgana, PhD, International Human Rights Statistician, Human Trafficking Prevalence Professor
– Dr. Aurelia L. Henriquez, Superintendent, Riverhead School District
– Dawn A. Lott, Esq, Executive Director, Suffolk Human Rights Commission

Moderated by:
– Yvonne Grant, President & CEO, Girl Scouts of Suffolk County
– Donna Smeland, Chair of the Board, Girl Scouts of Suffolk County

You’ll also meet some extraordinary girls and young women who have made the Girl Scout mission their own by doing some amazing things.

Join us on Thursday, March 29 at the Radisson Hotel Hauppauge-Long Island from 8-10:30 a.m. 

Register here.

The Engineering and Defense Industries on Long Island featuring Teresa Ferraro of East/West Industries and Rich Humann of H2M Architects + Engineers

Posted: January 30th, 2018

In this episode, Joe Campolo spoke with two successful Long Island business leaders. Joe chatted with Teresa Ferraro, President, East/West Industries, Inc., about her unique leadership path, the exponential growth of this family-owned business through the decades, and innovative projects and new technology in the defense/aerospace industry. Joe also caught up with Rich Humann, President and CEO, H2M Architects + Engineers, about his rise through the ranks from intern to President/CEO, recruitment and professional development strategies, and challenges of growing and expanding a business on Long Island.

Times of Smithtown: Campolo featured in “Hauppauge Industrial Park Considers Housing, Recreation”

Posted: January 25th, 2018

By Sara-Megan Walsh

SARA@TBRNEWSMEDIA.COM

The Hauppauge Industrial Park’s future may include new apartments and recreational spaces as it looks to move into the 21st century.

The Hauppauge Industrial Association of Long Island announced Jan. 19 at its annual conference that it is launching an opportunity analysis study that will attempt to identify ways the park can maximize its growth and competitiveness — with a focus on keeping millennials on Long Island.

“We have the ability to really keep these kids on Long Island,” said Terri Alessi-Miceli, president and CEO of HIA-LI. “We see the Hauppauge Industrial Park as an opportunity to do that. We are looking to make better connections to how they get jobs, where they get jobs and where they live.”

The year-long study will be led by the Regional Plan Association, a nonprofit research, planning and advocacy firm dedicated to the tristate area’s business growth and sustainability, which will work with Stony Brook University and the Suffolk County Industrial Development Agency. It aims to build off the results of an economic impact study of the park completed last year by SBU.

“The Hauppauge Industrial Park is the second largest industrial park in the country, second to only Silicon Valley,” said Joe Campolo, board chairman of HIA-LI. “That’s an amazing statistic if you think of how much notoriety Silicon Valley gets and how little notoriety Hauppauge Industrial Park gets.” Campolo said the two-year economic impact study, included research performed by three SBU graduate students, concluded that Hauppauge’s business economy lagged behind due to Silicon Valley’s partnership with Stanford University. “A light bulb went off after that phase of the study to say, ‘How do we now collaborate with Stony Brook University directly?’” he said. “Because from a business owner’s perspective the No. 1 challenge is getting and keeping good talent here on Long Island, and the No. 1 challenge Stony Brook has is making sure their graduates have good, solid jobs.”

The opportunity analysis will consist of surveying and gathering input from current Stony Brook students of what changes they would like to see made to the park to make it more attractive to live and work here, according to Campolo, citing successful revitalization of Patchogue and Port Jefferson. In addition, there will be a series of meetings with current Hauppauge businesses to discuss what they need to grow.

“There’s no reason the HIA and the Hauppauge Industrial Park cannot also be a tremendous success in integrating where people work and where people live and where people recreate,” said Mitchell Pally, CEO of the Long Island Builders Institute. One major factor the study will look at is the creation of multistory apartments in the industrial park in mixed-use buildings or along neighboring Motor Parkway.

Alessi- Miceli said this is a new possibility since the Town of Smithtown created a zoning overlay district in 2015 that allows buildings along Motor Parkway up to 62 feet in height and along Northern State Parkway up to 50 feet. Smithtown Supervisor Ed Wehrheim (R) said the overlay zoning is a “vital component to the success of the park” as the area saw a 2015 development spike after the zoning change, largely in recreational businesses and programs moving into the area. If this new study confirms more zoning changes are needed for the park’s future growth, Wehrheim said he would welcome the HIA-LI to discuss it with the town.

Innovate LI: Campolo’s role as regional rainmaker highlighted in “Analyzing the ‘Power’ of the Hauppauge Industrial Park”

Posted: January 23rd, 2018

By Gregory Zeller

Regional rainmakers are hitting the gas in a multifaceted effort to rev up one of Long Island’s top economic engines.

The Hauppauge Industrial Association of Long Island and the Suffolk County Industrial Development Agency on Friday announced a new partnership focused on Hauppauge Industrial Park, the 1,400-acre industrial cornerstone currently generating more than $870 million in annual income and property taxes.

Some analysts think it can do even better – and must, to give Long Island a puncher’s chance in an era when educated college grads (and, often, the companies they start) are fleeing Nassau and Suffolk for greener socioeconomic pastures.

Hence the new effort, which will also include legwork and study by the Regional Plan A

ssociation and will “explore ways to leverage the economic power” of the sprawling park, which is already home to roughly 1,350 manufacturing, construction and service-industry businesses employing some 55,000 people.

Deputy Suffolk County Executive Theresa Ward, the county’s commissioner of economic development and planning, referenced “the cusp of a new era of growth and investment” for “one of the most important economic engines on Long Island.”

“[The Regional Plan Association’s] analysis will identify potential areas for improvement to ensure the park meets the needs of today’s companies while anticipating future markets,” Ward told Innovate LI.

The “opportunity analysis” to be performed by the nonprofit, New York City-based, Greater New York-focused RPA and the other agencies follows up on an economic impact study of Hauppauge Industrial Park HIA-LI completed in 2017 with the help of Stony Brook University researchers.

That study not only identified the park – physically, the largest industrial park in the United States east of the Mississippi River – as a major economic driver, but essentially formed the basis of an expansion plan, referencing expanded sewage capacity and other niceties needed to super-size the existing park.

In announcing the release of that study nine months ago, HIA-LI President Terri Alessi-Miceli noted “the park is more significant than its stats.”

“There needs to be a greater sense of community and innovation here,” Alessi-Miceli said in a statement. “It is critical that we continue to develop desirable places to live, work and play here on Long Island.

“The Hauppauge Industrial Park can become one of those places.”

On Friday, HIA-LI Board Chairman Joe Campolo, managing partner of Ronkonkoma Law Firm Campolo, Middleton & McCormick LLP, echoed those sentiments and said it was “great to see that the park is starting to get the recognition it deserves.”

“Partnering with the Suffolk IDA and the RPA is crucial to getting the support and resources the park needs to thrive,” Campolo added.

To that end, the new partnership follows last year’s economic impact study with what HIA-LI calls “an important next step” for an industrial park already responsible for 1 out of every 20 Long Island jobs.

According to Ward, who also serves as chairwoman of the Suffolk IDA, the time has come for regional stakeholders to “rally around this remarkable resource and expand on its long-term economic influence.”

“We are hopeful this work will help cement the park’s future as a premier destination for thriving business,” the planning commissioner said.

Read it on Innovate LI.

Campolo Debates Elected Officials and Talks Economic Growth as 2018 Takes Shape

Posted: January 23rd, 2018

As the newly minted Chairman of the HIA-LI Board of Directors, Joe Campolo moderated a distinguished panel at the Annual Meeting & Legislative Breakfast on January 19, 2018 at the Hamlet in Commack. Campolo debated the 2018 economic forecast and policy with panelists New York State Senator Tom Croci, New York State Assemblyman Mike Fitzpatrick, Deputy Suffolk County Executive Jon Kaiman, Suffolk County Legislator Tom Cilmi, Smithtown Supervisor Ed Wehrheim, and Kulka LLC President Jack Kulka at an event that drew over 300 Long Island business leaders.

After opening the meeting with a focus on the need for transparency in government, Campolo shifted to the new Tax Cuts and Jobs Act and Governor Cuomo’s efforts to blunt the impact anticipated in high tax states such as New York. Targeting the governor’s proposed payroll tax, he pressed the elected officials at the state level as to whether they are enabling the governor to take money from the pockets of business owners. The conversation then turned to more local issues as Campolo and county elected officials debated pension spending, Suffolk County’s fiscal condition, the rise in healthcare jobs, and projects to expand the sewer system.

Despite the disagreements that Campolo’s tough questioning revealed, the morning ended on a high note for the local business community. Immediately following the breakfast, HIA-LI President Terri Alessi-Miceli, Assemblyman Fitzpatrick, Supervisor Wehrheim, and LIBI President and HIA-LI Board member Mitch Pally joined Campolo at a press conference announcing an important new partnership among HIA-LI, the Regional Plan Association, and the Suffolk County IDA. As part of the partnership, the RPA will undertake an economic study of the Hauppauge Industrial Park—a major economic engine for Long Island—that will focus on identifying opportunities for the park and attracting and retaining employees. The study follows an economic impact study completed by Stony Brook University, which revealed that HIP businesses generate more than $870 million per year in revenue and property taxes and employ more than 55,000 people.

Campolo explained that “we want to keep our young people on Long Island and make it more affordable for them,” as Alessi-Miceli emphasized that the HIA-LI and its member companies “are primed for growth.”

 

Tax Cuts and Jobs Act: How Are You Going to React?

Posted: January 22nd, 2018

Tags:

By Alan R. Sasserath, CPA, MS
Partner, Sasserath & Zoraian, LLP

Whether we like it or not, the “Tax Cuts and Jobs Act” (“TCJA”) has been signed into law.  The purpose of this article is not to discuss the merits of TCJA, but rather address what New Yorkers can do to minimize the tax bite that resulted from its passing.  Just as one of the laws of Physics is “For every action, there is an equal and opposite reaction,” the laws of tax are no different.  Some states such as New York are talking about instituting a deductible payroll tax to replace the non-deductible personal income tax as a reaction to TCJA.  However, we can’t rely on our state politicians as our sole reaction.  Here are some suggestions as to what each business and individual should discuss with their tax advisor in response to the TCJA.[1]

  1. Pass-Through Entity 20% Deduction: This is where significant planning time will be spent. For 2018, individual owners of pass-through entities with “domestic qualified business income” (“DQBI”) are permitted a deduction of up to 20% of such income subject to certain limitations based on wages and “business capital.”  In other words, an individual that owns a pass-through entity with DQBI of $100 could pay tax on $80 after this 20% deduction.  This effectively reduces the maximum Federal personal income tax rate from 37% to 29.6%.

Based on a strict reading of the law, different forms of business (Sole Proprietorship, S Corporation or Partnership) could result in differing amounts of this deduction for the same business due to the limitations referred to above.  The reason we say a “strict reading of the law” is that generally when there is confusion about a section of a new tax law, we can look to what the drafters were trying to accomplish and who was supposed to benefit to determine how to interpret such legislation.  Unfortunately, such clarity does not exist for this section of the TCJA.  We can only hope that future technical corrections will provide additional clarification.

Again, under a “strict reading of the law,” wage income is not included in the definition of DQBI.  Accordingly, business owners of S Corporations may want to minimize their salaries to minimize their exposure to higher tax rates.  A single owner of an S Corporation will be tempted to “optimize” their salary to maximize this deduction and minimize their wages.  Such calculations are subject to reasonable compensation rules.  Employees that are borderline independent contractors may push harder to be considered independent contractors or partners, in the case of partnerships, as their highest tax rates could be reduced from 37% to 29.6%.

Finally, individuals with multiple pass-through business interests will be tempted to allocate income from business interests where this deduction is limited or not permitted to business interests where they are more easily able to benefit from this deduction.  The simplest example is the doctor that owns their medical practice and the building in which they practice in two separate pass-through entities.  Income from many professional service practices, including medical, generally are not included in the definition of DQBI; however, income from real estate is included in DQBI.  Simply by raising the rent the medical practice pays the real estate entity, the doctor can turn non-DQBI income into DQBI income and be entitled to this additional 20% deduction.  Again, IRS reasonableness standards come into play.

This analysis is just the tip of the iceberg; this is where significant time should be spent planning.

  1. C Corporation 21% Tax Rate: The C Corporation tax rate was reduced from a maximum of 35% to a flat 21% in connection with TCJA. While this is an enticing rate, there are still state taxes to consider as well as the second level of tax when the income is distributed to the corporate owners.  Generally, the C Corporation route will not make sense due to the second level of tax, especially in high tax states.  Also, longer term considerations must be addressed. One such consideration is if the owner believes that the ultimate sale of the business were to be an asset sale.  The S Corporation typically makes more sense in the asset sale scenario.  (These are general rules as there are certain scenarios where a C Corporation will make more sense.)
  2. Itemized Deductions: Very few itemized deductions survived the TCJA. One of the survivors is the charitable deduction.  Couple this with the higher standard deduction and it could make sense for certain taxpayers to “bunch” their deductions into one year.  To get the benefit of itemized deductions in at least one year, donate $20K in year 1 and zero in year 2, rather than $10K each in years 1 and 2.  This way, it is more likely that you will be able to utilize itemized deductions in year 1 and still get the standard deduction in year 2.  If you donate $10K in each year, you may end up with the standard deduction in both years.
  3. Depreciation: 100% asset expensing and expanded section 179 asset expensing were included in the TCJA. The takeaway here is to maximize the depreciation benefit and consider state consequences.
  4. Kiddie Tax: Pre-TCJA, children that qualified for the “Kiddie Tax” could shelter up to $2,100 of investment income from their parents’ tax rate at a very low tax rate. Under the TCJA, assuming the parents are in the highest tax bracket, qualifying children can now shield up to $12,500 of unearned income at tax rates lower than the maximum tax rate.
  5. 529 Plans: Under the TCJA, taxpayers may use 529 plans to pay for private schools from elementary onward. Previously, such plans could be used to pay for qualified college expenses only.  There are two potential benefits with the 529 plan.  The first is that some 529 plans permit a state tax deduction upon contribution and the second is that the income earned is tax-free if used for qualified expenses.

As with the Pass-Through Entity 20% Deduction, these additional items relate to the entire TCJA and also merit careful planning.

In addition to the domestic tax changes referred to above, the TCJA contains a myriad of international tax changes that has altered the playing field for US companies with foreign operations and US shareholders in foreign corporations.  Other international corporate structures and individuals can also be affected.  As with some of the domestic provisions above, there is a cloud of confusion surrounding several of the international provisions contained in the TCJA.  However, there are steps that you can take to minimize your exposure to these issues. Such considerations are beyond the scope of this article; however, you should consult your tax advisor to address these issues.

Finally, above and beyond the TCJA, there are already a myriad of often-missed tax benefits that could apply to a business.  Two such benefits are: (1) the research credit, which is available for developing new technologies, software, and processes as well as streamlining processes as some examples of its application, and (2) IC-DISCs for manufacturers, producers and sellers of US products to foreign customers.  Both benefits are still available post-TCJA.

The bottom line: over the course of the year, and for some sooner than later, every business and individual should review their situation with their tax advisor to make sure they are maximizing their tax benefits.  Once the technical corrections to the TCJA are deployed as we hope/expect later in 2018, they should then re-confirm that they are maximizing their opportunities from the tax perspective.

[1] Please note that most TCJA provisions are effective January 1, 2018.

 

This article does not necessarily reflect the views of CMM and does not constitute legal or tax advice. Please consult with your accountant about your particular tax situation.

Everyone Needs a Will, But No One Wants to Do It

Posted: January 22nd, 2018

By: Martin Glass, Esq. email

Tags: ,

I think this is something that I’ve known even before I started practicing as an Estate Planning attorney. Matter of fact, it probably predates my practice by decades, if not centuries. What am I talking about? I’m talking about the tendency to hesitate (if not complete avoid) writing a Will. Both in my practice and my everyday life, I hear from people who recognize and admit that they should put a Will in place, but despite their best intentions, they simply don’t do it. Why is that? What keeps us from doing what we know we should do?

In my experience, a major driving factor which deters many people from preparing a Will is that they don’t want to face their own mortality. Or worse yet, I hear them say, “If I write a Will, I’m going to die.” Many people feel that if and when they do memorialize their last wishes, they’ll be tempting fate or inviting something terrible to happen. Personally, I believe that the day you’re going to die is already written somewhere. And whether you write a Will or not, that date is not going to change. While this tempting of fate is intellectually an irrational and unfounded fear, it’s hard to minimize the psychological effect it has on people and stops them cold from even pondering writing their Will.

To people with this mindset, there is no easy answer. Without diminishing the very real distress that many people face when forced to think about their last wishes, I would offer this bit of advice: Get over it. I hate saying that, and I certainly don’t intend to be rude, but you have no choice. You need only consider what’s at stake after you die to truly understand that reality. Do you really want the court to make decisions for you as far as who raises your children or where your assets go or even who gets to control them? Most likely the answer is no. I’m not saying it will be a comfortable conversation, and you might even disagree with your spouse (or children) about your final plans. But given the alternatives, a little bit of discomfort is really worth the potential chaos that you could leave your family in should you choose not to have that conversation and take action.

Another reason I hear when people avoid preparing a Will is that they don’t think they need one. If truth be told, there are some instances when a person truly doesn’t need one. That, however, is the exception to the rule. Everyone needs to understand one very simple thing. If you die without a Will, it falls on the court to decide not only how your assets are distributed, but who gets to distribute them, when they get distributed and who will be responsible for raising your minor children after you die. If you want to have control of all that, you need to prepare and complete a Will.

While no two estates are alike, it’s typically not that expensive to have at least a basic Will prepared, especially considering how expensive it can become if one wasn’t done. The reality is that not everyone requires a complicated estate plan or some type of trust. For the average person, it’s not that expensive and will be money well spent. If nothing else, it will provide you (and the rest of your family) with peace of mind knowing that everything has been set in place and done properly.

Although no one can force anyone to write a Will, I believe each of us has an obligation to those we love to do everything we can to make our final wishes known. If you haven’t already done so, I would urge you to write one for not only your own sake, but, more importantly, for the sake of those you leave behind. They are the ones who will be left to pick up the pieces.

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.