Finding the right QI for your Section 1031 exchange

Posted by Cory Caddell, Tax Services Manager on Jun 26, 2017

So, you’ve decided to participate in an Internal Revenue Code (“IRC”) Sec. 1031 exchange. Qualified intermediaries (“QIs”) can make or break your exchange, so hiring the right one is crucial. Here’s what you need to know.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

Pros and cons on joint ventures

Joint ventures offer several potential advantages. They enable smaller construction companies to take on large projects while dividing the contractual and financial risks of such projects. Further, those projects could be in geographic locations that you otherwise would not be able to access. A joint venture can also enable you to increase your bonding capacity, provide an opportunity to learn about more sophisticated technologies, and access other contractors’ relationships.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

Succession planning: Look at things from a surety’s perspective

A well-designed succession plan is critical to the long-term survival of a construction business. In developing one, it’s important to consider the objectives and needs of your company’s owners as well as their family members. But it’s equally important to examine your plan from the perspective of your surety.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

Lack of profit objective dooms deductions for real estate activities

Posted by Shea Kracheck, CPA, Tax Principal on Jun 26, 2017

Some people are drawn into the real estate game largely for the potential tax benefits—done right, for example, you can leverage any real estate losses you sustain into some generous deductions for business expenses. There’s a catch, though: You can’t be engaged in your real estate activities just to generate losses. If the IRS finds that you lack a profit motive, it will limit and perhaps disallow your deductions altogether. One taxpayer recently learned that the hard way.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

The WIP is good: A valuable management tool

Posted by Thalia Mancera, CPA on Jun 26, 2017

Financial statements are an indispensable tool for gauging your construction company’s historical results and financial health. But relying on them alone is like driving a car by looking in the rearview mirror. To see the road ahead, you need a work-in-progress (“WIP”) report for every job.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

The playbook on family

Posted by Jonathan Cook, Senior II, Tax Services on May 25, 2017

As any dealer will tell you, running a successful dealership is already challenging enough without managing the risk of family dramatics spilling over into the day-to-day operations. To get ahead of these types of risks, you must make the separation of business and family unmistakably clear. A formal, written family employment handbook is one way to do this.

Read More

Topics: Auto, Accounting Tips, Tax, Audit

Getting your brand mix right

Posted by Danni Douglas, Staff I, Tax Services on May 25, 2017

Adding or swapping a franchise requires due diligence

After several strong sales years in a row, some auto dealers are considering adding a franchise to expand their sales base.

Read More

Topics: Auto, Accounting Tips, Tax, Audit

Make fringe benefits a symbiotic relationship

Posted by Jonathan Cook, Senior II, Tax Services on May 25, 2017

None of your competitors will shed a tear at your employee turnover rate. They want the most talented staff, and poaching your best becomes a lot easier if you have lacking fringe benefits that competitors can thrust into the limelight. According to the National Automobile Dealers Association (“NADA”), in 2016, there was a worrying overall turnover rate of 40% at dealerships. Even worse, the NADA reported that turnover among salespeople in 2016 was a daunting 72%.

Read More

Topics: Auto, Accounting Tips, Tax, Audit

Is your dealership following these guidelines?

Posted by Danni Douglas, Staff I, Tax Services on May 25, 2017

With so many rules to follow, the first step to ensuring compliance is to make sure that you’re aware of them. It is also suggested to create a compliance checklist for each of your transactions to guide the process while following the laws and best business practices.

Read More

Topics: Auto, Accounting Tips, Tax, Audit

Why use qualified employee benefit plan auditors?

Posted by Dawn Möeder, CPA of England and Wales on May 2, 2017

The Employee Retirement Income Security Act of 1974 (ERISA) states, in short, that companies must have their annual benefit plan report (Form 5500) audited if you have 100 or more participants in your plan (Companies within the range of 80 to 120 employees have additional criteria to consider). It is the responsibility of the plan administrator to hire independent, qualified public accountants to perform the audit. Manufacturing companies may look to keep costs down by hiring a less experienced accountant. But you’ll want to pay now to save yourself later.

Read More

Topics: Manufacturing & Distribution, Accounting Tips, Audit