Real Estate & Construction Accounting Blog

While the 2011 Survey of Northeast Ohio's Construction and Real Estate Industries has shown some positive signs in terms of financing in the real estate realm, it is still one of the major concerns revealed in this year’s survey. Additionally, many respondents are feeling the cash flow pressures created by vacancies and a lack of demand. Despite these difficulties, respondents are more confident now than at any other time since the start of our survey that there will be more real...

The 2011 edition of our Survey of Northeast Ohio's Construction and Real Estate Industries seems to be pointing to a brighter future for many of those in the construction industry. Survey respondents are more confident about opportunities in the Northeast Ohio market, have seen increasing job sizes and are finding financing somewhat easier to come by. While there were many positives in this year’s survey, competition is still keeping margins very tight and obtaining bonding remains a concern.

Oppo...

Although Northeast Ohio’s construction industry is struggling, some construction companies are still succeeding.

Those that are doing so are taking a hard look at what they do and how they do it to stand out from the crowd and give themselves a competitive advantage. You need to examine your current scope of work and determine your strengths to help maximize your bottom line.

What can contractors do to grow their business in the current market?

The most important thing is to look at the scope of...

• Fourth Annual Survey of Northeast Ohio Real Estate and Construction Industries
• Significantly Reduce Your Not-for-profit Audit and Tax Expenses
• Stay Within Charitable Deduction Boundries
• Roth IRA Conversions: Time to Decide
• New Estate-tax Relief: It's Complicated
• Aurum Capital Markets Summary and New Web Site
• Does Your Business Have an Ohio Use Tax Account
• April Audio Group - Audio Book Club Meeting
• College Planning...

CLEVELAND – Skoda Minotti is pleased to announce the launch of its fourth annual survey of the Northeast Ohio real estate and construction industries. The goal of the survey is to provide professionals in the real estate and construction industries in Northeast Ohio with invaluable insight into their industries.

“We received record participation in our 2010 survey and are looking to improve on that number once again in 2011,” said Roger Gingerich, CPA/ABV, CVA, partner-in-charge of Skoda...

The Patient Protection Act, as amended by the Health Care and Education Reconciliation Act, provides a sliding-scale small employer tax credit to help offset the cost of employer-provided health insurance coverage. Generally, a small employer is one with fewer than 25 full time equivalent (FTE) employees and average annual wages per employee of less than $50,000. The credit is phased out between 10 and 25 employees and average annual wages per employee between $25,000 and $50,000. 

FTE employees...

• Understanding the Energy Efficient Deduction
• National Construction Industry Outlook
• Management Perspective: Claims Avoidance as Means and Methods

This issue of the Real Estate Monitor includes the following articles:

• Understanding the Energy Efficient Tax Deduction
• New Requirements for Asbestos Surveys from the Ohio Department of Health
• Housing: Affordability of Home Ownership
• Deductions: Passive Losses
• Mortgage Loans: New Rules
• Housing: Residential Ground Leases
• Securities: No Liability Under Securities Exchange Act
• Cleveland Market Overview

Understanding the Energy Efficient Tax Deduction

Skoda Minotti, along with CLS Facility Services, invites...

This issue of the Real Estate Monitor includes the following articles:

• Survey of Northeast Ohio's Construction & Real Estate Industries
• Communicating the Value of Development Projects Through Economic Impact Analysis
• The Outlook for Construction and Real Estate
• Commercial Real Estate: How Will Refinancing Take Place?
• Proposed New Accounting Rules
• Due Diligence: Purchase With Care
• Leases Checking: Property Tax Invoices 
• Upholding a Letter of Intent
• Cleveland Market Overview

Survey of Northeast Ohio's...

The American Job Builders Tax Reform Act of 2010 (H.R. 6097) is a bipartisan bill that was introduced in August 2010 that would be very beneficial to small contractors if passed into law. The bill makes a lot of sense for the several reasons. Before I go into those reasons, I will provide some background on revenue recognition for contractors under current law.

Under current tax law, a small contractor that has average annual gross receipts over the past three years of $10 million or greater must...

• Contractor Roadmap to Improvement
• National Construction Industry Outlook
• What's it Cost?

Contractor Roadmap to Improvement
by Mark Slavik, Cutter Croix, LLC

Most construction contractors got into the business to work with their hands not manage spreadsheets, computers and other office-related processes.  However, like other types of businesses, construction companies need basic organizational and operational processes to...

• Building Information Modeling - Why Now?
• National Construction Industry Outlook
• Can Europe's Problems Slow Construction in the United States?

Building Information Modeling - Why Now?
by Donna L. Cahan, eBlueprint

As one of the most dominant trends impacting the Construction Industry, Building Information Modeling (BIM) is frequently discussed and debated among industry professionals.

While most of us clearly understand the...

Situation/Opportunity

After being in business for about five years, a local roofing contractor contacted us because they felt they had outgrown their current CPA. They were doing well and wanted to take their business to the next level. In order for the Company to realize its maximum potential, management concluded that they needed to surround themselves with an advisory team to assist them in understanding all of the financial factors that impact operations.

Skoda Minotti Solution

Many departments...

This issue of the Real Estate Monitor includes the following articles:

• What is Deconstruction?
• Understanding the Energy Efficient Tax Deduction
• Real Estate Workouts: Cash Flow Mortgages
• Leases: The Takeover Lease
• Mortgage Loans: Buying and Selling
• Mortgages: Buyer Contingency Clauses
• Loans: Prepayment Penalty Upheld
• Metropolis: Five New Realties

What is Deconstruction?
By Joe Rettman & Mark Rabkin, Deconstruction Management, Inc.

Deconstruction is the comprehensive dismantlement of building components,...

Advisor Insights

For the past several months, our Real Estate and Construction Group has been authoring a monthly column in Builders Exchange Magazine that offers advice to real estate and construction professionals.

So far this year, the following topics have been covered:

• The Benefits of Subprime Bonding  
• Selecting and Implementing Financial Software  
• The Value of a Niche Marketing Plan 
• Lessons Learned From the Construction Industry  
• Cancellation of Debt Income 
• Preventing Financial Fraud 
   

This issue of Construction Connections includes the following articles:

• Improving Your New Business Pipeline
• National Outlook

Improving Your New Business Pipeline
By CutterCroix

For many construction companies, today’s marketplace seems harder than ever to survive, let alone thrive.  There are many external challenges impacting the company’s ability to achieve its business goals.  Some of these external forces include the lack of available credit to support new projects, cost increases in equipment,...

2010 Real Estate and Construction Survey

Skoda Minotti is conducting our 3rd annual survey of the Northeast Ohio real estate and construction industries. Every participant who completes the questionnaire will receive a free copy of the survey results and analysis and have a chance to win a $50 gift card to Dick's Sporting Goods.

The goal of the survey is to provide professionals in the real estate and construction industries in Northeast Ohio with the invaluable insight into their industries.

As...

Advisor Insights

Skoda Minotti is conducting our 3rd annual survey of the Northeast Ohio real estate and construction industries. Every participant who completes the questionnaire will receive a free copy of the survey results and analysis and have a chance to win a $50 gift card to Dick's Sporting Goods.

The goal of the survey is to provide professionals in the real estate and construction industries in Northeast Ohio with the invaluable insight into their industries.

As an added bonus, one out...

The Tax Court has held that, under the regs, a land surveying firm is treated as performing engineering services even though it employed no engineers. As a result, the Tax Court found that the firm was a qualified personal service corporation subject to a flat 35% tax rate.

Background. C corporations generally are subject to tax at graduated rates on their taxable income. (Code Sec. 11(b)(1)) The benefits of the graduated rates phase out after taxable income reaches a specified amount. By...

This issue of Construction Connections includes the following articles:

• 2010 Construction Outlook
• Ten Steps to Safety
• Lost Productivity Damages
• Surety Market Update

The construction market ended 2009 in as bad a shape as it has been in for almost two decades, with non-residential construction plummeting and housing construction at record post-World War II lows. For the overall economy, however, the year ended with a host of indications that recession was morphing into...