Useful information in a concise format on: - How to Defer Income Tax Using Like-Kind Exchanges - Building & Maintaining a Solid Family Business - 4 Qualities of Best-in-Class Wellbeing Providers - Life Insurance: A Multi-Purpose Financial Tool - Driving Organizational Change through Internal Coaching

1. I D E A S T O H E L P G R O W Y O U R B U S I N E S S
S T R A T E G I E S
ISSUE 71 • SPRING 2017
Our business is growing yours
Defer Income
Tax Using
Like-Kind
Exchanges
Driving
Organizational
Change through
Internal Coaching
4 Qualitiesof
Best-in-Class
WellbeingProviders
Building&
Maintaininga
SolidFamily
Business
Life Insurance:
A Multi-Purpose
Financial Tool

2. In This Issue…
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BIZGrowth Strategies, visit
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@cbz CBIZ BIZ Tips
Videos
Tax & Accounting ...................... 2
How to Defer Income Tax Using
Like-Kind Exchanges
Management & Performance.... 4
Building & Maintaining a
Solid Family Business
Employee Benefits .................... 5
Four Qualities of Best-in-Class
Wellbeing Providers
Insurance Strategies.................. 6
Life Insurance: A Multi-Purpose
Financial Tool
Human Resources...................... 7
Driving Organizational Change
through Internal Coaching
CBIZ in the News
For complete articles, visit
cbiz.com/news/in-the-news.
2 | BIZGROWTH STRATEGIES – SPRING 2017 CBIZ, INC.
Election Special
BY BENNETT BERG
I
f you own appreciated real estate that is held for investment,
rental income or used in your business and you are thinking of
reinvesting its value into a similar type of property, consider using
a Section 1031 like-kind exchange. A successful like-kind exchange
will defer federal and state income taxes on the taxable gain until the
replacement property is sold.
Individuals, C corporations, S corporations, partnerships, limited
liability companies and entities that pay taxes can participate in a like-kind
exchange, so long as the real or personal property being exchanged is of
the same nature, character and class as the relinquished property:
n Real property is like-kind with all real property, but it is not like-kind
with any personal property.
n U.S. real property is not like-kind with non-U.S. real property.
n Personal property is like-kind with personal property, so long as both
are in the same asset class for depreciation purposes.
How to Defer
Income Tax
Using Like-Kind
Exchanges
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cybersecurity losses
February 9, 2017
The Associated Press
Pay the IRS late? At some companies,
it’s a strategic move
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What you need to know about
insuring extreme winter sports
December 21, 2016
Tax Accounting
Like-kind exchanges
must be set up as a swap.
How the Exchange Works
Like-kind exchanges must be set up as a swap. Most use an
independent qualified intermediary (QI) to facilitate the exchange. The QI
receives the relinquished property title prior to the close of the “sale” along
with the assumption of debts that will be paid on closing. Within 45 days of
the property transferring to the QI, you must identify, in writing, up to three
replacement properties to be purchased with the sale proceeds (less debts
paid). The QI must acquire and deed you at least one identified property
within 180 days of the property transfer.

3. CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2017 | 3
Taxable Gain Considerations
Although some taxable gain is deferred in a like-
kind exchange, you may owe taxes on gains in certain
scenarios. Reinvesting less than 100 percent of the
relinquished property sale proceeds may trigger taxable
gain. For example, if certain income or expenses
such as rent or property taxes are paid from the sale
proceeds, your taxable gain will be the lesser of the
total realized gain from the relinquished property or the
shorted reinvestment amount.
If you die with a deferred gain, your deferred gain is
eliminated. A gift of property during your life, with a deferred
gain, simply transfers the deferred gain to the transferee.
In some cases, an exchange with a related party
will cause a like-kind exchange to fail. If your debts
assumed by the QI are greater than the debt you
assume from the QI, that difference (less any additional
equity you pay) creates “boot” and causes taxable
gain to the extent such gain is less than the total gain
realized upon the property “sale.” Any cash received at
the closing of your property is also taxable “boot” to you.
Reverse exchanges, where the QI acquires
the replacement property before disposing of the
relinquished property, may also trigger taxable gain.
Acquiring newly constructed property as replacement
BENNETT BERG
CBIZ MHM, LLC
Chicago, IL • 312.602.6820
bberg@cbiz.com
property in an exchange is complex. Both have IRS
safe harbor procedures and should be discussed and
understood prior to undertaking the exchange.
Other scenarios with unique considerations include
exchanges or acquisitions involving:
n installment sales;
n fractional tenancy in common interest;
n multimember partnerships or LLCs where not all
partners want to pursue a like-kind exchange;
n foreclosures or deed-in-lieu of foreclosures;
n partnerships or LLCs that want an exchange to
take place over two tax years; and
n rental vacation homes used for minimal personal
purposes.
Like-kind exchanges may involve unique IRS
considerations and safe harbor procedures, which
makes planning essential to maximizing their benefit. An
experienced tax advisor can assist in navigating taxable
gain issues and making sure your like-kind exchange
meets compliance requirements.

4. 4 | BIZGROWTH STRATEGIES – SPRING 2017 CBIZ, INC.
Management Performance
BY MARC J. MINKER
F
amily businesses are an often overlooked form of
ownership, yet it is estimated that 90 percent of all
U.S. businesses are family-owned, and one-third of
all companies in the SP 500 index started as a family
business.
Family-based business culture and shared values
can provide strategic direction, continuity and customer
appeal. On the flip side, these businesses may face
unique challenges when family members are active.
Varying goals, personalities and family politics all can be
in the mix. However, if a family-owned company is built
on an organized and solid foundation, it will be ready for
the potential challenges. Several key aspects of business
structure are therefore important:
Communication is fundamental.
Small differences among related employees can
escalate into family feuds, affecting the company’s
longevity.
Family members may find it hard to express their
disagreements. For example, a son, fearing rejection,
may not tell his father, the founder of a successful
company, that he sees a different business direction.
Scenarios like this are common. They can be detrimental
to the company’s future and disrupt family harmony.
A “family office approach” led by a trusted advisor
who aids in strategic planning and facilitates family
meetings can establish a productive communication
structure that not only helps resolve differences
in management styles but also fosters a culture
of inclusion and responsibility. For many families,
particularly when elaborate tax and estate plans are
involved, communication regarding financial affairs
will also be important. For the benefit of younger
generations, these discussions can include information
on the origins of the family’s wealth and creation of a
vision for its future stewardship, as well as the current
state of the family’s finances.
Who’s in? Who’s not?
Problems can arise when family business owners
are tempted or pressured to promote family members
who lack adequate skills. In addition, offspring may be
reluctant to join the business in spite of the founder’s
plans. These issues need to be considered delicately,
honestly and often.
Every business needs a good mix of people to help
it operate and grow. Many founders initially intend
BuildingMaintainingaSolidFamilyBusiness
to restrict outsiders from high-level positions, yet
success may depend on a quality or skill not present
in the family. Non-family employees add balance to the
organization because they view the business from an
unemotional position.
Succession Planning
If you take only one thing away from this discussion,
it is this: If you want your business to transition from
generation to generation, you absolutely must have a
succession plan in place.
Without one, the company can close faster than
it was built. According to Nancy Bowman-Upton in the
Small Business Administration publication Transferring
Management in the Family-Owned Business, only 30
percent of privately owned businesses make it past the
first generation. Yet, at any given time, 40 percent of
U.S. businesses are facing a transfer of ownership issue.
Sometimes this is due to succeeding family members
not having interest in running the business, but in most
cases it is due to the absence of a succession plan.
Developing a structured plan is best constructed with
the assistance of a business advisor. Succession and
estate planning need to start early. This will help children
and other family members find their place, create
financial structures that work for all and maintain open
communication during periods of transition.
Founders may not want to let go of the company
because they are afraid the successors are not prepared
or that they will be left without a formal business role. It
(Continued on page 8)

5. CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2017 | 5
Employee Benefits
BY EMILY NOLL ABBY BANKS
T
here are thousands of vendors offering employer
solutions designed to improve workers’ health
and wellbeing. According to the Kaiser Family
Foundation, the wellness industry1
is an intensely
competitive, fragmented, $8 billion dollar industry.
With so many providers and new technologies in the
marketplace, it can be challenging for employers to
select one, and, frankly, it often takes more than one
vendor to provide a range of services that suits the
needs and interests of a diverse workforce, as well as
the goals of the employer.
Finding wellbeing vendors that are aligned with
your company culture takes time. A typical search
for a wellbeing vendor, starting with a request for
proposal (RFP), takes 90 to 120 days to complete,
although a six-month lead time is recommended to
ensure that selection, contracting and implementation
goes smoothly. While a new program can be launched
quickly with all hands on deck, advanced planning
is ideal for an employer to create a thoughtful plan
with smart communications to maximize employee
engagement.
There are several qualities that best-in-class vendors
have in common:
Wellbeing Focus
A program that focuses on physical health
alone won’t draw in the majority of your workforce.
One employee may be in marathon shape yet have
overwhelming debt, while another employee may be
excelling in their career yet losing sleep over stressful
family issues. Neither is apt to prioritize a “biggest loser”
contest over these more pressing wellbeing needs.
Wellbeing vendors with a holistic approach and variety of
solutions will have the greatest positive impact.
Personalized Experience
A shiny new wellbeing website may prompt
employees to register, but employees need personalized
support and encouragement to keep coming back.
The more innovative wellbeing vendors provide this
experience by using data about the individual’s goals,
interests and preferences to provide a portal experience
and communication approach tailor-made for them.
Proactive Account Management
A great wellbeing partner will assign a dedicated
team to manage your program, including a hands-on
approach to initial implementation, troubleshooting
employee issues or concerns in a timely manner,
and regularly bringing you data and fresh ideas to
promote your program. The vendor should have
a reasonable account manager to client ratio,
depending on the size and revenue of the accounts
being managed, and thoughtfully match an account
manager with the right experience and skill set to
support your company. And, just as you would do in
interviewing a job candidate, check references. Ask
referring companies about their experience and the
strength of their account manager.
Actionable Data
As vendors vie for employers’ business, they are
becoming better at capturing and analyzing data to
demonstrate their value. A quality vendor will provide
robust reporting on participation, engagement and
health outcomes and take the time for meetings at
least annually to discuss and strategize based on these
results. Some vendors may go the extra mile and seek
certification from third-party organizations, such as
NCQA, to validate the quality of their services, products
and data.
With enough time and proper guidance, it’s possible
to find a wellbeing partner that will collaborate with your
team to achieve your company’s goals and engage your
employees. If you already have vendors in place, be sure
to set aside time to evaluate their services and identify
ways to optimize your partnership to yield the best results
for your workforce.
1
http://kff.org/private-insurance/issue-brief/workplace-wellness-programs-
characteristics-and-requirements/
EMILY NOLL
CBIZ ESO Wellbeing Solutions
Columbia, MD
443.259.3287 • enoll@cbiz.com • @thrivexpert
ABBY BANKS
CBIZ ESO Wellbeing Solutions
Kansas City, MO
816.945.5461 • abanks@cbiz.com
4 QualitiesofBest-in-Class
WellbeingProviders

6. 6 | BIZGROWTH STRATEGIES – SPRING 2017 CBIZ, INC.
BY DON KIM
F
or most privately owned businesses, the death,
disability or retirement of a co-owner or key
employee can directly impact the sustainability of
the business. Such a loss not only impacts short-term
operations, it also can have a dramatic impact on the
viability of the company long term.
Life insurance is a multi-purpose financial tool
well suited to managing these and other key business
issues of importance to business owners and other
stakeholders.
Planning for the Future
Life and business are both full of the unexpected;
however, wise business owners will make every effort
to be as well-prepared as possible. Companies that
have instituted succession plans ensure the stability
of the business and bolster the confidence of business
partners, vendors and bankers alike. The challenge
is to develop a succession plan that satisfies each
business owner’s desires to pass along assets to
his/her heirs, while making sure the business is not
negatively impacted.
Life insurance can play an important role in ensuring
continued success by both funding a succession plan
and reducing the risk represented by the loss of an owner
or key employee. It can be integrated with strategies
commonly used in succession planning, such as:
n Funded buy-sell agreements provide an orderly
means of transferring a business interest upon the
death, disability or retirement of an owner.
n Key person insurance provides the liquidity
needed to handle the loss of a key employee and
recruit and train a replacement. It may also help
replace any associated lost profits.
n Estate equalization allows business owners to
distribute assets fairly and equitably to each heir.
In many closely held businesses, not all heirs will
be suited to take ownership of the business. The
life insurance proceeds will provide an inheritance
equivalent to a portion of the business value
instead of a share in the actual business.
Life Insurance:
A Multi-Purpose
Financial Tool
Insurance Strategies n Estate liquidity ensures the ability to pay estate
taxes due at the business owner’s death without
having to close or liquidate the business. Life
insurance provides an immediate source of income
to the owner’s estate.
Tax Minimization
The tax-free growth of life insurance cash value is an
attractive benefit to most companies and one reason why
corporations fund permanent insurance policies. Cash
value accounts grow tax-free while within the policy.
Cash Flow Management
Life insurance can improve the credit-worthiness
of a business owner or the corporation itself. The policy
owner (an individual or a corporation) can always
borrow against the cash value directly from the life
insurance company. Additionally, a policy’s cash value
can be considered an asset when applying for bank
loan preferred rates to finance capital expenditures or
when emergencies arise.
Employee Benefit
Finding and keeping the right employees is a
key challenge in any business. Life insurance can be
used to fund employee benefits in various ways, thus
helping business owners attract and retain high-quality
employees.
Loan Collateral
Another benefit of using life insurance to fund
business succession plans is the ability to use the
proceeds as loan collateral. A life insurance policy can
be structured to avoid defaulting on a business loan
should a death, disability or retirement occur. In this
case, the collateral assignment is signed by the owner
of the policy and often by the lender, as assignee. If an
unfortunate event occurs, the policy proceeds are used to
reimburse the lender. Once the lender is paid in full, the
beneficiaries under the life insurance policy receive the
remaining proceeds.
Bottom Line
Proper planning using life insurance as a financial
tool can provide privately owned businesses with stability
and protection, as well as operational advantages. Its
most familiar role is as a key feature of a succession
plan, offering liquidity upon the death, disability or
retirement of an owner or vital employee. However, life
insurance can play an even broader role in strategic
planning, assisting with cash management and loan
collateralization, offering tax-free growth, and recruiting
top-quality employees with benefit funding.
DON KIM
CBIZ Life Insurance Solutions, Inc.
San Diego, CA
858.444.3111 • dkim@cbiz.com

7. CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2017 | 7
DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional
advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader
is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in
connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that
could affect the information contained herein.
the coach will be twofold – keeping confidence of those
they coach and remaining differentiated so as to bring a
‘third-party’ perspective to the session.
Why is coaching impactful for an organization?
First, before the role is the soul. No matter the
organizational issue brought to a coaching session it will
always distill down to something very personal. Today’s
leaders need a broad skill set to maintain a competitive
edge – accentuating strengths and filling in flat spots.
An executive coach can evoke insight, open blind spots,
challenge assumptions and cultivate greater clarity while
concurrently addressing predetermined goals that align
with organizational priorities.
Investing in talent is the new coin for organizational
rewards. Coaching cultures are on the rise and for good
Human Resources
Driving Organizational Change
through Internal Coaching
BY LESLIE ANDERSON
W
e are first human.
How does this impact the work environment?
With each life there is a history. This history
is not checked at the door but walks into the meeting
and through the building, interfaces with the client, and
participates in every facet of the work day.
Why does this matter?
High-performing organizations are by design, not
default, and begin with high-performing individuals.
A growing number of organizations are turning to a
framework of internal coaches who can assist in creating a
pipeline of leaders and develop managers who can coach
their teams. An internal coach knows the culture and the
natural flow of an organization. The biggest challenge for (Continued on page 8)

8. MARC J. MINKER
CBIZ MHM, LLC
New York, NY • 212.790.5826
mminker@cbiz.com • @CBIZNewYork
©Copyright2017.CBIZ,Inc.NYSEListed:CBZ.Allrightsreserved.•CBIZ-020,Rev.71
8 | BIZGROWTH STRATEGIES – SPRING 2017 CBIZ, INC.
Our business is growing yours
Management Performance (Continued from page 4) Human Resources (Continued from page 7)
can be helpful to start planning with the end in mind by
determining when and how the founder or other family
members in key roles will retire or leave the company. A
realistic timetable includes training and mentoring the next
generation, involving non-family members in the business
operation when appropriate, and establishing a predictable
and orderly succession of authority and ownership.
In the end, it’s a business.
Like any business, a family business must have a
solid business model. Injecting family ties can provide
both strength and challenges. Research has established
that generational transition is the highest risk for
continuity and that the vast majority of family businesses
fail to deal with it effectively.
The good news is that failures can be prevented with
appropriate and comprehensive preparation. A concrete
succession plan along with mechanisms for communication
and guidelines for leadership and management positions
form a strong foundation for success.
LESLIE ANDERSON
CBIZ Talent Compensation Solutions
Kansas City, MO • 816.945.5404
leslie.anderson@cbiz.com • @cbiz_tcs
reason; the Socratic Method is a time-tested way of
communicating, which moves objectives forward and
creates personal accountability. This is the foundation of
an individualized development program.
The same competencies which contributed to a
promotion will not sustain the leader in a new role. A
coach can assist in bridging the gap by facilitating a
‘transcend and include’ process. This is where prior
competencies and new ones are melded together to
create a foundation which will sustain the leader in their
new role.
An organization that has interest in housing an
internal coach function must employ a deliberate and
thoughtful process. Relying on industry standards from
the International Coach Foundation will ensure the
coaches are credentialed and working from a sound
methodology foundation. Funneling the process through
human recourses is essential, as well as getting buy-in
from the executive suite.