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Q4 Edition, November 2013

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

Recent data on jobs, retail sales and business inventories showed the economic recovery stuck in neutral. Yet certain sectors continued to show signs of strength.


Consumer spending rose slightly in September as Americans snapped up smart phones and leisure goods. But consumer confidence fell sharply in October, dragged down by the 16-day government shutdown and protracted debt ceiling fight.


Meanwhile, the National Federation of Independent Business index of small business indicators ticked down a bit in September, as small business owners' expectations for the economy declined. But their own sales outlook improved.


Home remodeling is expected to increase at a double-digit pace in the next few months, although higher interest rates and building costs could cut into that growth by mid-2014, said the Joint Center for Housing Studies at Harvard University
Taxes and Tax Planning
The tax equation in the new health care law (via the New York Times) - some good news from the new marketplaces is that low-wage workers will be given a lot of assistance with their health expenses. But that assistance has the unfortunate consequence of higher income taxes. Read more... 


New tip-reporting rule looms large (via taxprofblog) - A change in how automatic tips for large parties are classified would mean more paperwork and added costs for restaurants-and a potential financial hit for wait staff who live on tips but don't always report them. Read more...


A sneak peek at 2014 taxes (via accountingweb.com) - The IRS has announced annual inflation adjustments for more than 40 tax provisions affecting individuals in 2014, including tax rate schedules. Read more...


Managing Your Business
Passing the torch, without getting burned- When it comes time for you to retire, passing your company to someone else - even a son or daughter - can be challenging. RBF partner Bill Rucci and colleague Harris Kligman offer four tips to make the process a little bit easier. Read more...  


Now is the time to sell your business (via inc.com) - If you've been waiting to sell, the time is ripe. Both buyers and sellers have been plowing back into the market lately. Read more...  


5 networking tricks for those who hate networking (via U.S. News & World Report) - If you're like most people, the idea of traditional networking sends chills down your spine. If you dread exercising this important business skill, try these tricks on for size. Read more...


Why employees make stupid mistakes (via inc.com) - To get the maximum commitment and performance from your employees, you must put each of them on the right seat on the right bus or the bus will go nowhere but downhill. Read more...



Around the Office
In October, RBF co-sponsored a day of free trolley tours in the town of Northbridge, MA. RBF staffer Lenny Smith worked with the town's historical commission to develop the program of guided tours of Northbridge locations that highlighted the area's vital role in America's Industrial Revolution.


North of the border, RBF partner Paul Bardaro made a presentation in Toronto on the benefits of phantom stock as an employee retention tool. His talk was part of an annual conference held by Russell Bedford International, a global consortium of accounting firms of which RBF is a member.


Also in October, RBF partner Bill Rucci presented a two-hour seminar on tax code changes relevant to construction businesses to members of the Associated Subcontractors of Massachusetts. Topics included the extension on certain accelerated depreciation methods, the scheduled phase-out of some tax exemptions and itemized deductions, and the business impact of the new Affordable Care Act.


In the publishing arena, an article by Bill Rucci and Russell Bedford colleague Harris Kligman on the subject of succession planning was published by PMAnewsline.com, the website of a national trade association that serves the photography industry (manufacturers, retailers, labs and studios). A similar version of the article also appeared in Professional Contractor Magazine, and on the trade website ForConstructionPros.com.


And finally, we congratulate Ted Flynn, President of the Massachusetts Society of Certified Public Accountants, on his retirement after 44 years at the helm. Thanks Ted for your lifetime of dedication, leadership and hard work on behalf of the Society.


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

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