UHY LLP Michigan Practice

EVENTS CALENDAR

Automotive Update

SPECIAL ANNOUNCEMENTS

America's Thanksgiving Parade

Congratulations, Rick David

Aaron Witalec M&A Insights

Careers

QUICK LINKS

Why UHY?

Construction Expertise

Locations

ARCHIVE

Missed an issue? New subscriber? Visit our

news archive.

PRESIDENT OBAMA SIGNS TAX EXTENDERS BILL

As the construction industry anxiously anticipated, President Obama signed into law the Protecting Americans from Tax Hikes Act, which retroactively extends many of the tax provisions that had expired at the end of 2014. Rather than continuously extend many of the provisions on an annual basis, Congress elected to make certain provisions within the Act permanent extensions, while many other provisions within the Act were extended for more than one year. The retroactive enactment of this legislation will impact the 2015 taxes for many individuals and businesses.

Among the key provisions that are extended in the Protecting Americans from Tax Hikes (PATH) Act of 2015 are:

BUSINESS PROVISIONS

PERMANENT - Section 179 expensing of up to $500,000 of qualifying property is permanently extended. The dollar amounts will also be indexed for inflation in the future. The Act also expands the property eligible for Section 179 to now include air conditioning units and heating units.
EXTENDED - Bonus Depreciation on qualifying property placed in service before January 1, 2020, subject to phase-outs; 50% bonus depreciation for property placed in service in 2014 through 2017, 40% bonus depreciation for property placed in service in 2018, 30% bonus depreciation for property placed in service in 2019.

Research and development credit -
- Besides making the research and development (R&D) credit permanent, there are also other provisions regarding the R&D credit within the Act that may benefit taxpayers:
15 year recovery period for qualified leasehold improvement property, restaurant property, and retail improvement property
Reduction in period in which an S-corporation may be subject to built-in gains tax to 5 years from 10 years
100% exclusion of the gain on certain small business stock

Other Extensions:

Work Opportunity Tax Credit is extended through December 31, 2019. This credit will also apply to a new targeted group, individuals who are long-term unemployment recipients.
The Act relaxes the rules related to bonus depreciation related to qualified leasehold improvements. Under the new law, qualified leasehold improvements are no longer a listed category of assets eligible for bonus depreciation. Instead a new category has been added which is qualified improvement property. Qualified improvement property is an improvement to an interior of a building that is nonresidential real property if the improvement is placed in service after the date the building was first placed in service. There is no longer a requirement that the improvements be subject to a lease, nor that they be done more than three years after the date the building was first placed in service.

INDIVIDUAL PROVISIONS

Permanent Extensions:

Deduction for sales and use tax in lieu of state income taxes
Tax free treatment of distributions from IRAs where the distributions are donated to charity
The American Opportunity Tax Credit
Above the line deduction for educator expenses of up to $250

Other Extensions:

Mortgage Insurance Premium Deduction for premiums paid or accrued during the tax year was extended through 2016
Exclusion from income arising from the discharge of qualified principal residence indebtedness was extended through 2016
The above the line deduction for qualified tuition is extended through 2016

ENERGY - RELATED PROVISIONS

the nonbusiness energy property credit for certain energy-efficient improvements to the taxpayer's main home; extended through 2016;
the credit for alternative fuel vehicle refueling property; extended through 2016;
the credit for two-wheeled plug-in electric vehicles; extended through 2016;
the second generation biofuel producer credit (formerly cellulosic biofuels producer tax credit); extended through 2016;
the incentives for biodiesel and renewable diesel; extended through 2016;
the renewable electricity production credit, and the election to claim the energy credit in lieu of the renewable electricity production credit (except with respect to wind facilities); extended through 2016;
the credit for construction of energy efficient new homes; extended through 2016;
second generation biofuels bonus depreciation; extended through 2016;
the energy efficient commercial buildings deduction; extended through 2016;
the incentives for alternative fuel and alternative fuel mixtures through 2016; and
the credit for new qualified fuel cell motor vehicles; extended through 2016.

The permanent and annual extensions provided in the Protecting Americans from Tax Hikes Act will be very helpful as you plan your business and personal finances. These provisions will provide more certainty in the important decisions you make in the future.

For more information on this act or how these tax breaks can apply to you or your business, contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy.us.com.

EVENTS CALENDAR

1/19 AUTOMOTIVE UPDATE: "HOW LONG CAN WE KEEP MOVING METAL?"
Save the date for 2016 Automotive Update on Tuesday, January 19 from 7:30-10:15AM at UHY's training center in Sterling Heights. This complimentary seminar is brought to you by Michigan Manufacturers Association (MMA), Sterling Heights Regional Chamber of Commerce (SHRCC), UHY LLP and LMC Automotive. Stay tuned for more information.

Back to top

SPECIAL ANNOUNCEMENTS

UHY LLP PARTAKES IN NEARLY 90-YEAR-OLD DETROIT THANKSGIVING TRADITION
For the second consecutive year, UHY LLP sponsored the Distinguished Clown Corps float in the 89th America's Thanksgiving Parade. Over 70 feet long and standing 17 feet tall, the DCC float is the centerpiece of the 180+ Distinguished Clowns greeting and entertaining hundreds of thousands of spectators.

70+ employees and their families filled the streets to cheer on UHY's very own Distinguished Clowns (Chad Kime, Matt Munn, Debi Ritter, Bill Kingsley, Todd Bensley and son Justin, and Tom Callan and son Joe) who walked alongside the float, representing UHY. The clowns distributed candy, smiles and UHY beads to spectators along the parade route.

Click here to view a short video clip

The Parade is Detroit's grandest and most anticipated civic event, the second largest Thanksgiving parade and the third largest parade in the country overall. First televised in 1948, The Parade is broadcast live locally on WDIV-TV Local 4 with a syndicated national potential reach of over 65 million households.

"UHY is celebrating our one-year anniversary in our newest downtown office. We've always had strong ties to this community, supporting numerous local charities; and we are thrilled to be a part of this memorable tradition," said UHY Advisors' chairman and CEO, Tony Frabotta. "Our firm chose to sponsor this float because the Distinguished Clowns Corps is comprised of community leaders and supporters just like us."

UHY ADVISORS' COO, RICK DAVID, ELECTED AS TREASURER OF UHYI BOARD
During the 2015 UHY International Annual General Meeting in Rio de Janiero, Rick David, chief operating officer of UHY Advisors, was elected as treasurer of the UHY International network. David, a member of the UHYI board of directors, becomes responsible for developing, implementing and supervising UHY's strategic financial activities. "I am honored to be elected as treasurer of our international network. I hope to properly safeguard our assets while insuring that our network expenditures are in line with our agreed upon budgets and serve to add value to the network, and our many member firms," said David. He has been a member of the UHY International Board of Directors since 2012.

AARON WITALEC, DIRECTOR OF UHY CORPORATE FINANCE, SHARES HIS THOUGHTS ON FOREIGN M&A ACTIVITY
Dykema's 2015 M&A Insights report found a smaller percentage of respondents expecting foreign dealmakers to become more active on US soil. Given recent world events, that's not surprising, says Aaron Witalec, director at UHY Advisors Corporate Finance, LLC. With valuations high, economic turmoil in China and the US dollar performing well against foreign currencies-particularly the euro-we're more likely to see a rise in American companies pursuing deals overseas than the other way around, says Witalec, whose firm has a physical presence in 89 countries. Last year, 78 percent of respondents said they expected an increase in activity from China to the US, compared with 69 percent this year. In 2014, 74 percent of respondents said they expected an increase in activity from Europe to the US, compared with 47 percent this year. Whereas US M&A activity to China was not viewed as positively this year, a greater percentage of respondents expect M&A from the US to Europe to increase. That makes sense, Witalec says, noting that, as places like China cool off, Eastern Europe in particular looks ripe for increased M&A activity.

"Western European companies had an interest in pursuing low-cost solutions in Eastern Europe. Then, 10 to 15 years ago, China became the focus for multinationals as it was viewed as 'the place to be,'" Witalec explained. "Now, given the challenges in Asia, Eastern Europe is becoming an attractive destination once again with more American and Western European companies searching for the right acquisitions in the region, especially those that provide a meaningful technological edge in manufacturing."

Click here to view the complete summary.

CAREERS AT UHY
Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date listings or contact Yolanda Rountree. Current opportunities in our Michigan offices include:

Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
Audit Manager, 7+ years of experience, SEC experience is highly preferred
Audit Senior Accountant, 5-7 years of experience, CPA required
Internal Audit Risk & Compliance Manager, 7+ years of experience
R&D Tax Specialist, 7+ years of experience
Tax Manager, 7-10 years of experience
Director of Litigation, testifying experience required municipalities
Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred

Published by UHY LLP News.

Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.