Construction Accountants

With the current state of the economy, real estate owners and developers are faced with many major issues as current tenants are going out of business and the pool of new tenants is shallow.  Although these issues are unfortunate, they also provide opportunities for tax savings. 

When a tenant leaves, a landlord is left with the question, “what can be done with the finished space that the tenant left behind?”  Since the introduction of the Modified Accelerated Cost Recovery System (MACRS), the...

With the current economy as it is, cancellation of debt (COD), which is reported on Form 1099C, is going to be a more common occurrence to both individuals and companies. In general, when a debt is canceled or forgiven and it is not a gift, it must be included in income. However, the amount of income to include and where on the return to report it may vary. Reviewing this type of transaction and minimizing the tax related to the cancellation of debt is a service we can provide. 

Treatment of...

In today’s economy, it is crucial to keep good tenants. The following nine points will help you maintain maximum occupancy in an uncertain environment:

1. Understand the tenant’s business. Research their industry so you can credibly talk about their business, and make them feel that you understand their concerns in today's economic conditions. 
2. Respond reasonably to rent relief or downsizing. This entails a two-step process consisting of listening to the request, and then formulating a personal...

In the latest issue of The Boma Magazine (July/August 2009), an article by Stephanie J. Oppenheimer, APR, takes a closer look at green leases (Green Leases: A Study in Symbiosis, p.30).

The most effective green campaigns emphasize two main points: going green will save money and will be a team effort with shared responsibilities and consequences. An increasing number of commercial real estate owners and tenants are looking to green their leases in ways that will reduce costs and provide...

Building Information Modeling, or BIM, has been around for decades but has caught the attention of the construction industry in the last several years and is continuing to pick up momentum for good reason.  Implementing BIM has helped contractors streamline their job costing which is one of the most important activities performed by those working in the construction industry.  Some contractors are spending as much as 50% of their time doing so and it has been estimated that, in 2009, project...

Many companies are unaware of their obligation to obtain a use tax account and self remit use tax on a regular basis.  Companies should review their purchases for potential risk to use tax.  Reviewing a company's use-tax exposure is a specialized service tax we are able to offer to our clients.

Who does use tax affect?

Purchasers of tangible personal property or taxable services that are consumed, used or stored in Ohio can be subject to use tax when a vendor does not charge sales tax.   However,...

According to an article in Retail Traffic, major big-box retailers have informed about 700 shopping center owners that they will be reducing their rent 25%, no questions asked. Included in the letter was their first rent check, at the reduced rate. Owners and retailers have both been hurting in this poor US economy and each are trying to keep their head above water by reaching a common ground. With vacancy rates rising and retail sales decreasing, roles have switched from the past ten years and...

Looking for a low-cost construction financing option? The American Recovery and Reinvestment Act of 2009 created a new category of bonds - Recovery Zone Bonds (RZB). These bonds are intended to stimulate economic recovery in designated “recovery zones”. There are two categories of RZBs – Recovery Economic Development Bonds ($10 billion allocated) and Recovery Zone Facility Bonds ($15 billion allocated).

Recovery Zone Economic Development Bonds – These are governmental bonds to be used for...

The CPAs, business and financial advisors in Skoda Minotti's Real Estate and Construction Group recently authored an article for Builders Exchange Magazine.

The article summarizes some important accounting and tax provisions that construction professionals need to keep in mind. The article highlights the American Recovery and Reinvestment Act, the Energy Policy Act of 2005, qualified rehabilitation and low income housing tax credits.

To view this helpful article, click here.

Looking for a...

Contractors need to be aware of recent problems associated with drywall exported from China. This drywall has been in the country for several years, but the defects have only recently been discovered. The defects latent in the drywall are the corrosive properties of a few of its key components that were purportedly interchanged with waste-product (flyash) from coal-fired power plants.  

According to this article from the Tampa Bay Tribune, “a preliminary assessment of 12 homes in South Florida...

We have all heard and read a great deal about the various Stimulus Packages of late. However, savvy real estate and construction professionals have known for years that various forms of stimulus by way of public funding have been readily available. From historic tax credits (HTF) and façade easements, to Tax Increment Financing (TIF) and Ohio Department of Development (ODOD) programs, to the Ohio Energy Office, there are numerous opportunities for loans, grants, and cost-savings incentives.

HTF's...

Hello, and welcome to the first blog entry from the Skoda Minotti Real Estate and Construction Group!  We are excited to roll-out our new website, and will periodically bring you up-to-date on recent events, changes in market conditions, educational opportunities, tax-savings tips… anything that can help you in your real estate or construction business.  We strive to connect you and your business contacts to our real estate and construction world.

We encourage you to browse through our Real...