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Q3 2013 Edition

Rucci Bardaro & Falzone, PC
The Right Size Accounting Firm
919 Eastern Avenue
Malden, MA 02148
303 Wyman Street
Suite 300
Waltham, MA 02451
7 Main Street
Atkinson, NH 03811
T: 1-781-321-6065
F: 1-781-321-7747

IRS CIRCULAR 230 NOTICE: In compliance with IRS requirements, we inform you that any U.S. tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer or in connection with marketing or promotional materials.


Welcome to the latest issue of RBF News - our summary of the important tax, business and financial news and opinion you need to help you see the bigger picture, and make more informed decisions.


Economic Snapshot
Although the Fed's tapering of the economic stimulus known as "quantitative easing" has been grabbing headlines lately, elsewhere signs of a recovering economy have been quietly accumulating.
Builder confidence continued to grow last month, according to the National Association of Home Builders.This fourth consecutive monthly gain brought the NAHB confidence index to its highest level in nearly eight years.
Meanwhile, consumer confidence unexpectedly improved in August as Americans grew more optimistic about job opportunities and the economy, Bloomberg reported. Consumer spending accounts for about 70 percent of US economic activity.
And CFOs shared a more positive perspective on the economy as they entered the second half of 2013, according to a survey by Financial Executives International (FEI) and Baruch College's Zicklin School of Business.

Taxes and Tax Planning


New website explains health care tax provisions - The IRS has launched an Affordable Care Act website to educate taxpayers on how the health care law might affect them. Topics include premium tax credits for individuals, new benefits and responsibilities for employers, and tax provisions for a variety of business types.


What to know about the tax-deferred exchange of property - Section 1031 of the U.S. Tax Code allows taxpayers to defer taxes if they exchange one business property for another of "like-kind." Although normally used for real estate, it's also available for vehicles, equipment, livestock and any other business property, reports FOXBusiness.com.


Is there a way to avoid 'kiddie tax' on investments? - In 1986, Congress imposed a "kiddie tax" throwing the investment income of youngsters into their parents' higher tax bracket. But Forbes.com reports on a creative way around the tax that works for college students.


Managing Your Business
Recovering from a business disruption - For many small- and medium-size businesses, a technological disruption of their daily workflow can quickly turn into a business killer. RBF client Tim Lawlor of Retrofit Technologies advises business owners to expect the unexpected, and to prepare accordingly.   


Planning a "One Fund" benefit?  Don't forget the paperwork - Although setting up an event can be fairly simple, it does require that sponsors register the benefit with the Massachusetts Attorney General's Office. RBF Staff Accountant Kyle McClure provides a quick summary of the process.   


A better approach to group decision-making - Making high quality decisions is the key to business success. Yet for some, the ability to pump out good, actionable decisions gets strangled by one seemingly well-meaning intent: the search for consensus. Inc.com author Les McKeown offers a new way to define - and reach - consensus.


Around the Office


Bill Rucci traveled to Barcelona, Spain in June to speak about structuring foreign investment in U.S. real estate. The forum for his talk was the annual tax conference held by Russell Bedford International, a global network of professional service firms of which RBF is the Boston area member.


RBF Partner Mark Paquin recently passed the Series 65 Investment Adviser law exam. He now holds the designation of Investment Advisory Representative, which allows him to represent investment companies. Congratulations Mark!


In the publishing arena, an article by Paul Bardaro on the subject of using phantom stock as an employee incentive was published by PMA, a national trade association that serves businesses in the photography industry (manufacturers, retailers, labs and studios).


Sal Falzone's article on the new Section 179 tax deduction limits for businesses was published in The Professional Contractor magazine, and was posted on ForConstructionPros.com.  


And Bill Rucci's article about "Fine-Tuning Your Financial Operations" appeared in the latest issue of American Business Ownermagazine. For a copy of the article, write info@rbfpc.com.


RBF's pro bono support of a local jobs training program was recognized by its developer, the New England Center for Arts and Technology. NECAT provides tuition-free assistance to teens and adults who are unemployed, underemployed, or transitioning from public assistance programs.



Rucci, Bardaro & Falzone PC  lever@rbfpc.com | http://www.rbfpc.com
919 Eastern Avenue  Malden, MA 02148

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