Building Construction

Investors find relief from like-kind limbo
There is now relief for property owners who couldn't complete a like-kind exchange because their qualified intermediary entered into bankruptcy or receivership. You may now use a special safe harbor method to report gain or loss, and the IRS won’t treat you as being in receipt of the exchange proceeds.

Old concept still works: Manage by walking around
In 1982, Tom Peters and Robert Waterman published an acclaimed business book called "In Search of Excellence." They espoused a practice of “management by walking around” as a way to achieve excellence. They were on to something then, and the lesson still applies today.

Property improvements can save you taxes
When selling investment property, sometimes major expenditures, such as a new roof, an addition or remodeling can result in a quicker sale – perhaps at a higher selling price. On the other hand, if you don’t expect the market to yield a price sufficient to recover the additional investment, you may be tempted to forgo the additional cost. But that decision could prove to be shortsighted. Keep in mind that the tax law may act to soften the blow of your pre-sale expenditures.

Family Business

Difficult employee? Respond wisely
Employees are human. That means they are subject to human foibles and failings. You may even be more aware of this if they are family members. You can live with minor quirks, so you probably overlook them. But when an employee’s difficult behavior begins to affect their job performance or other staff and customers, a manager has a duty to intervene.

Hiring your kids pays off for everyone
If you're like most parents, you probably spend a great deal trying to meet the needs and wants of your growing children. If you run your own business, you have a unique opportunity to provide your children with a sense of responsibility and gain some tax advantages at the same time. The tax law allows you to hire your children as part-time employees of your business. If you give them age-appropriate responsibilities and pay them reasonable compensation for their time and effort, you can deduct their pay as a business expense.

Trouble with peers? Change your actions
You are a manager. There are other managers – your peers, and perhaps even your relatives – with whom you do not get along. You may view them as "difficult." They may view you as difficult, too. But you have to work with them. What can you do to ease the conflict and improve cooperation?

General Business

How to place fair value on minority interests
One plus one equals two, right? If we can agree on this, we can also say that the sum of the parts equals the whole. But, as logical as this theory may seem, it may not hold true when determining the value of a shareholder’s minority interest in a business.

Use wire transfers with care
Moving money by wire transfer eliminates some of the risk of forgery and fraud schemes of using paper checks. But if you don’t have proper procedures in place, it can also be a way that unscrupulous people can move enormous amounts of money out of your accounts, possibly into non-U.S. accounts.

How to reduce stress in the workplace
Stress has been described as America's No. 1 health problem. Some studies suggest that 75 percent of all primary care physician visits are for stress-related problems. Today, concerns about the economy and national security weigh heavily on the minds of employees. While employers can do little to reduce these stressors, they can work to reduce job-related stress by focusing on the most frequent causes.

Manufacturing

Creativity key to assigning extra work
When you have to spread an absent employee’s duties around, how can you ease the load for the bearers of that burden? What might bolster team morale and motivation? Here are some ideas.

Where to cut employee expenses
Cutting expenses may be necessary during an economic downturn. At some point, you may have to make tough choices to keep your business viable.

Don't fall victim to procurement fraud
Procurement fraud extends across many industries, and the types vary in sophistication. It arises from contract management and the outsourcing of goods and services. Identifying the risks of procurement fraud will aid in safeguarding your organization from falling victim.

Nonprofit Organizations

Do you plan to go international?
Your nonprofit may be considering whether it is time to add international offices. If so, what benefits will you receive, and how will you keep the employees involved?

Case study: Discovering procurement fraud
Here are two truths when it comes to fraud. Most are found by accident, and collusion and procurement fraud are common partners. This case illustrates how board disclosure statements helped a nonprofit discover that it was the victim of procurement fraud.

Would street canvassing be a help?
Street canvassing is a challenging form of fundraising, but when it works properly, it can bring financial, social and political benefits to a nonprofit organization. This kind of grassroots fundraising isn’t for everyone, however, and nonprofits considering adding street canvassing to their arsenal need to analyze potential positives and negatives carefully.

Physician Services

Financial statements hold key to practice plans
Know your financial statements – glimpse your future. Financial statements are used for many purposes and are often required. However, the most significant purpose of financial statements is to summarize events that took place in your medical practice during a set period of time. The information is important to understand not only what occurred but, more importantly, what needs to change for the future to produce the best possible financial results.

Roth IRA conversion: No longer forbidden
If you have retirement money accumulated in a traditional IRA, you may want to consider transferring some or all of those funds to a Roth IRA before the end of this year. This is a new opportunity. Prior to 2010, you were not permitted to convert funds from a traditional IRA to a Roth IRA if your adjusted gross income exceeded $100,000, not including any income caused by the conversion. But beginning this year, the income limit for a conversion is repealed. Anyone who has funds in a traditional IRA can convert those funds to a Roth IRA.

Meaningful use rules: Are you ready?
Physicians need to act fast if they want to apply for up to $44,000 in federal subsidies available to those who can show meaningful use of certified electronic health records. The Centers for Medicare & Medicaid Services (CMS) released the final rule on July 13. To satisfy Stage 1’s definition of meaningful use, physicians will need to show they have met the measures associated with 15 core objectives. They must also fulfill at least five of 10 additional objectives, the balance of which can be deferred to the following year. Eligible providers must meet all Stage 1 requirements by 2014 to receive payments. Those providers who do not meet meaningful use of EHRs by 2015 will face reduced Medicare payments under a 2009 American Recovery and Reinvestment Act penalty provision.

Wealth Advice and Financial Planning

Healthcare reform: Plan for new taxes
All Americans are weighing the pros and cons of the sweeping healthcare legislation passed in March. Almost everyone agrees with provisions that prevent health insurance companies from denying coverage for pre-existing conditions and from dropping coverage when someone gets sick. But some people may not greet tax increases with similar approval. A number of tax increases, penalties and other provisions will not take effect immediately, so now’s the time to discover which ones will apply to you and your family and take appropriate tax and financial planning steps.

Know tax implications before cashing in life insurance
A recent case before the Tax Court shows how important it is to know the tax implications when it comes to cashing in an insurance policy.

Online shopping tips to remember
Shopping online has many advantages, such as convenience and selection. But it also has its drawbacks. The anonymity of the Web can allow disreputable merchants to flourish until caught. Here are tips to help you take full advantage of your online shopping experience while avoiding scams.

Valuations

How would a disaster impact your business?
Disasters happen. Have you considered what will happen if your firm is unable to resume normal operations over an extended period of time? Business insurance may provide a reasonable backup plan.

Court rules on use of LLCs as estate planning tool
Unless it is overturned on appeal, a decision by the U.S. Tax Court could have repercussions that estate planners and tax advisers have not yet fully comprehended. At issue are some questions about the use of single-member limited liability companies as estate planning tools. The specific issue addressed by the court is whether the so-called check-the-box regulations cause an entity that is disregarded for federal income tax purposes to also be disregarded for federal estate and gift tax purposes.

The problem with transaction multiples
Business owners, appraisers, auditors, judges and other parties affected by appraisals sometimes have a lapse in judgment when considering “comps,” guideline companies that have published valuation multiples. Any measurable differences between a subject company and its comps can be – and typically are – used to exclude transactions that would otherwise provide useful information. What are appropriate benchmarks for managing a private company and determining its value?

Washington Tax Update

Tax planning tip of the week

What's new from the IRS

What's new from the Courts

It bears repeating

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