In This Issue
Work Opportunity Tax Credit (WOTC) seminar to be held in Evansville, Indiana in January 2015
We will post information on our website as it becomes available.
News & Resources
2015 TAX PLANNING GUIDE NOW AVAILABLE
With the end of the year quickly approaching, get the latest information for individual and business income tax planning.


TANGIBLE ASSETS AND REPAIRS STUDIES (TARS) FINAL AND PROPOSED REGULATIONS

In September of 2013, the IRS issued final regulations that help to distinguish capital expenditures from supplies, repairs, maintenance, and other deductible expenses.  Although the final regulations are more taxpayer-favorable than the temporary regulations, they still require a significant investment in time and talent to assure compliance. Virtually every business is required to comply with these new rules for its first tax year beginning on or after January 1, 2014.

 

As promised, the IRS has issued automatic consent procedures for changing to the various accounting methods that are required or permitted under these rules. Automatic consent procedures streamline the approval process by allowing you to switch to another accounting method simply by filing the proper information with the IRS, without having to wait for the IRS to grant its consent.

 

The accounting method changes that are addressed in the automatic consent procedures deal with the rules for materials and supplies; repairs and maintenance; general capital expenditures; the acquisition or production of tangible property; and the improvement of tangible property. Some of the most common accounting method changes that may be necessary are listed below:

  • a change to deducting amounts paid or incurred for repair and maintenance;
  • a change to capitalizing amounts paid or incurred for improvements to tangible property, and if depreciable to depreciating such property;
  • a change in the method of identifying a unit of property (UOP), or in the case of a building, identifying the building structure or building systems for purposes of making the changes above;
  • a change to deducting non-incidental materials and supplies when used or consumed; and
  • a change to deducting incidental materials and supplies when paid or incurred.

Generally, if you make one or more of the preceding changes that relate to the same unit of property (UOP), you may file a single Form 3115 and provide a single Code Sec. 481(a) adjustment. If there are negative and positive adjustments, you may report the net negative and net positive adjustments separately on the single Form 3115.

 

If you have any questions regarding these Regulations, please contact Michael Cameron, CPA at 800.880.7800 ext. 1394. 

ASSOCIATED GENERAL CONTRACTORS' SURVEY SITES WORKFORCE SHORTAGE IS WORSENING

According to a nationwide survey conducted by the Associated General Contractors of America (AGC) of over 1,000 of its member firms, craft worker shortages have increase from 74% in 2013 to 83% in 2014. The survey was conducted during August and September of this year. Because of the qualified worker shortage, nearly half of the survey respondents reported an increase in using subcontractors, while 37% have reported using staff agencies to fill these positions. Another 19% have invested in labor-saving machinery, tools and equipment, while 21% have done nothing to address the shortage.

 

Although construction firms do not expect this situation will improve in the next 12 months, 59% reported they have increased employee pay, benefits and overtime in order to retain workers as well as attract new workers. At the same time, these shortages are likely to force higher prices in construction bids as the demand for construction continues to rebound. And construction firms continue to be concerned with the quality of construction and training programs with 25% reporting below average quality of local training and even 10% rating the quality to be poor.

 

The National Survey Results can be found on AGC's website.    

WHAT DO YOU WANT TO HEAR ABOUT IN 2015?

Harding, Shymanski & Company, P.S.C.'s Construction Team hosts seminars throughout the year, and we would like to know what topics are of interest to you.  Take our short survey by clicking the link below.

ABOUT OUR CONSTRUCTION, REAL ESTATE AND MINERALS INDUSTRY   
Because Harding, Shymanski & Company, P.S.C. is committed to providing quality service to our construction, real estate, and mineral industry clients, we have selected a team of dedicated professionals to serve as your industry's consultants.  These individuals under the language and key issues unique to your industry and posses the drive and determination to help you manage your company on a proactive basis.

Harding, Shymanski & Company, P.S.C.
800.880.7800
SEE WHAT OUR CLIENTS ARE SAYING...

I chose HSC because the organization has a concentration of expertise in the construction industry and because I was impressed with their professionalism and knowledge. I have been very satisfied with my choice ever since. In the HSC package I not only got Scott Olinger, a valued business counselor and thought leader, but also Andrea Strange.

 

Andrea has been our account representative for the past five years. She is a great asset not only in the course of completing our annual audit and tax process, but throughout the year. She comes with her team well prepared and knowledgeable of our company and our systems.

 

Benjamin Feinn, CEO, Koch Corporation