With all of the changes to the meals and entertainment deduction under the new tax law, we thought we would summarize the rules in this handy table. Please reach out to us if you have questions. (more…)
Qualified Opportunity Funds...an Opportunity for Tax Savings
By Abe Livchitz, CPA, Senior Tax Manager & Tingting Zhang, CPA, Tax Senior
Tax deferral, gain exclusions, tax free appreciation. These seven words are very exciting as they offer potentially significant tax savings for our clients. All three of these benefits are possible by investing in a “Qualified Opportunity Fund” (QOF). The creation of these funds and their related tax benefits were authorized by the Tax Cuts and Jobs Act (TCJA) passed by Congress in December 2017. The Internal Revenue Service recently issued guidance to clarify questions unanswered by the TCJA, so QOFs should gain in popularity in the coming months. However, additional guidance is expected in the future, as many questions remain unanswered. (more…)
Environmental Impact of the Concrete Surrounding You
By Steve Carter, CPA, Principal
ASL Construction Group
When you see a cement mixer going down the street, or at a site getting ready to pour, do you think immediately of the effects upon our environment? I must confess, I have not. Until recently.
Cement is a major component of concrete. Cement is often referred to as the glue that holds concrete together. But cement is very harmful to our environment. One ton of cement production releases one ton of carbon dioxide (CO2) into the atmosphere. With cement production currently at 2.8 billion tons per year, and expected to only increase, that is a lot of CO2 released into our already fragile atmosphere. (more…)
Major Change in California Independent Contractor Classification Rules
By Rachel Rabindran, Accounting Consultant
In April, 2018 the California Supreme Court issued their long-awaited ruling in a class action lawsuit concerning delivery drivers. The court unanimously ruled in Dynamex Operations West, Inc. v. Superior Court of Los Angeles County that a worker will be considered an employee of the hiring entity unless the hiring entity can establish all three of the following factors (also known as the “ABC test” to identify independent contractors): (more…)
409A Valuations... What’s the Issue?
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
First, a little background, 409A is an IRS Code section that requires companies to grant stock options at Fair Market Value (FMV), meaning no discounts anymore. In order for a company to prove they granted stock options at FMV, they’ll need to follow the valuation rules surrounding 409A. (more…)
Red Flags on a Contractor’s Work in Progress Schedule
By Deepa Bhat, CPA, Audit Principal
ASL Construction Group
It is a well-known fact that best in class contractors prepare a work in progress (WIP) schedule on a regular basis. Not only does this practice allow the users of the financials, such as lenders and bonding companies, identify early warning signs, it enables contractors to better measure their progress on jobs and be proactive in seeking change orders and contract revisions. As a constant reviewer of contractor financials, I have found the following most common red flags on WIP schedules that are worth mentioning: (more…)
Tax Act Effect on Valuation
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
With the signing of the Tax Cuts and Jobs Act (TCJA) in December 2017, valuation analysts have been tasked with incorporating the changes to the tax law into their analysis. Changes, such as the lowering of corporate tax rates and restrictions on interest deductibility, must be factored into valuation analysis to capture the effects of the TCJA on company value. When valuing a US company, valuation analysts must now consider the following: (more…)
Beware of New California Employee Protection Law
By Abe Livchitz, CPA, Senior Tax Manager
ASL Construction Group
In October, 2017, Gov. Brown signed Assembly Bill 1701 modifying the California Labor Code. The bill requires contractors to assume liability for any unpaid wages or fringe benefits owed to employees of their subcontractors. This provision applies to all nonpublic construction contracts entered into on or after January 1, 2018. The new law requires diligent contractors to now monitor the payroll functions of their subcontractors and any subcontractors used by their subcontractors. (more…)
Game Changer: U.S. Supreme Court Decision on Internet Sales Tax
By Erika Diebert, CPA, Tax Manager
ASL Tax Group
The U.S. Supreme court recently made a landmark decision in South Dakota v. Wayfair. The case has changed the rules on the taxability of internet sales. The court decided for South Dakota and allowed the state’s ability to tax internet sales of consumers who lack physical presence in South Dakota. Since 1992, the Supreme Court decision in Quill Corp v. North Dakota has been the standard on when states can impose sales tax on retailers. The Quill decision required some minimum physical presence of property or employees before states could impose sales tax. As technology has advanced and consumers have turned to the internet for retail activities, the Quill standard has imposed a barrier on the individual states’ ability to tax sales activities occurring within their borders. Many states have reacted by imposing new standards in an effort to circumvent the Quill decision. Some of these standards include cookie nexus or click through nexus that put simply, create the minimum presence needed to impose sales tax through defining the presence of technology as physical presence of property. Up until now the Supreme Court has declined to hear a case involving the state’s new imposition of these nexus standards that do not follow the Quill decision, until now. (more…)