Articles

When an LLC doesn’t protect personal assets

Limited liability companies (LLCs) are a common way for real estate owners and developers to hold title to property. Their popularity is due, in part, to the fact that LLCs limit members’ personal liability.

Hobby or business? The IRS wants to know

If you generate a side income from a passion like cooking, woodworking or bookselling — or anything else — you should be aware of the tax implications of earning this money. These will vary depending on whether the activity is treated as a hobby or a business.

The right research can improve materials purchasing

Many contractors get in the habit of buying their construction materials from the same small group of suppliers they’ve used for years. There’s nothing wrong with rewarding reliable vendors with repeat business, of course — particularly if these suppliers offer favorable prices to their regular customers.

Proposed Changes to Employee Benefit Audit Standards

Our governing body, the AICPA’s Auditing Standards Board (ASB), issued proposed changes under a Statement on Auditing Standards (SAS), Forming an Opinion and Reporting on Financial Statement of Employee Benefit Plans Subject to ERISA, that may have a profound impact on the way practitioners perform and report on employee benefit plan audits.

 

Are you ready for the new revenue recognition rules?

New rules are poised to take effect that could fundamentally change how many in the real estate industry will account for their revenue. Public companies must apply Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, in 2018, while compliance for private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) begins in 2019.

Saving for College: Debunking some common Section 529 plan myths

Section 529 plans have become one of the most popular tools used by parents to save for their children’s college education. One reason they’re so “in” is their favorable tax treatment: If the funds are used to pay for qualified education expenses, the earnings accumulate tax-free.

Get ready to recognize … differently

Construction businesses that follow Generally Accepted Accounting Principles (GAAP) will face an important change in about one year. That’s when Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, begins to take effect for private companies.

Compare and contrast the House and Senate tax bills

November 9 was a busy day in Washington for lawmakers in their race to hammer out a tax reform package. The House Ways and Means Committee made amendments to, and approved, the Tax Cuts and Jobs Act. And the Senate Finance Committee released “policy highlights” for its proposed version of a tax plan.

Many of the House and Senate provisions are similar. For example, both plans would repeal the alternative minimum tax and retain the charitable contribution deduction. However, there are a number of key differences. Here’s a look at some of the most significant.

Sweeping tax changes proposed for individuals and business in House-released bill

On November 2, the U.S. House Ways and Means Committee released its sweeping bill to reform the tax code. Here’s a brief rundown of some of the individual and business provisions in the 429-page Tax Cuts and Jobs Act. Generally, the changes would go into effect after December 31, 2017, but there are exceptions.

Is a prospective commercial tenant creditworthy?

Smart residential property landlords run a credit check before entering a lease agreement with a new tenant to help evaluate whether he or she will pay the monthly rent. Commercial tenants — even those backed by well-known, longstanding corporations — typically merit even more scrutiny.

Teal, Becker & Chiaramonte Certified Public Accountants