Category: Legislation and compliance

How are construction firms affected by TIPA 2014?

The passing of the Tax Increase Prevention Act of 2014 brought a swath of tax extensions that had already expired with the 2013 tax year. While these extensions didn't really help individuals and businesses make solid purchases because the law was only signed on Dec. 19, there are still benefits to be had based on individual and corporate tax returns. Taking advantage of these tax benefits for the year may result in refunds that can be used for capital investment such as fixed assets in the coming year. This is especially the case with construction companies. A large number of…

Read More

Budget effects of the Tax Increase Prevention Act of 2014

In late December 2014, prior to the holidays, President Barack Obama signed the Tax Increase Prevention Act of 2014. The law extended 52 different tax incentives that had expired with the 2013 tax year, intending to extend them the 2014 and sometimes 2015 tax year, depending on the circumstance. The most significant of these was the bonus depreciation, which allowed a company to depreciate up to half the value of a given fixed asset in the first year after purchase. In addition, there were extensions to the more lenient rules of Section 179 of the tax code, as well as…

Read More

Key deductions retained with the Taxpayer Increase Prevention Act

At the end of last year, President Barack Obama signed the Taxpayer Increase Prevention Act of 2014. This law will greatly affect businesses and taxpayers for the current tax year and how they measure depreciation, especially as tax season gets underway. While we previously discussed the extended deductions in some detail, more have been announced as part of the signing that have a positive impact overall on businesses. These deductions could help improve tax viability as well as planning for more spending in the 2015 tax year as a result of the savings, and proper asset accounting software will maximize potential…

Read More

Depreciation tax benefits extended for 2014 tax year

For many businesses, the political gridlock in Washington has brought uncertainty as to how things to be in 2015. Despite the Republican Party earning significant majorities in the 2014 midterm elections – especially within the U.S. House of Representatives and Senate – businesses remain concerned about their future. Many reforms which would help them achieve their long-term goals have been either sitting on committee or left out of discussion in recent years. This is especially true of comprehensive tax reform. Still, a small improvement on that front means that businesses are able to earn some savings for next year's , especially in the…

Read More

Applying generally accepted auditing standards to inventory auditors

Fixed assets should undergo audits on a regular basis. This helps ensure that inventory is consistent and secure, so that valuations are accurate for compliance with regulatory agencies, as well as during tax season. Accuracy can affect companies in numbers exceeding millions of dollars. In order to properly develop a strategy for executing audits on a regular and as-needed basis depending on the circumstances, there are people that must be hired outside the company to do this. The auditors assigned to the job should have the competency and independence to manage the job in order to successfully complete the audit…

Read More