Construction Industry Tax Incentives

With tax season well under way, we’re sure you’re looking for ways to minimize your tax liabilities. Of the many savings available, there are two tax savings options that construction companies should have on their radar: the R&D Tax Credit and the 179D Tax Deduction.

Established in the Economic Recovery Tax Act of 1981, the R&D Tax Credit allows companies creative innovative products and procedures to receive tax incentives. Historically applied to technological and biomedical research work, the...

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New VIE Ruling Alleviates Pressure on Contractors

Many contractors participate in common-control leasing arrangements for their operating facilities. Under these arrangements, private operating companies create separate entities from which to lease their operating facilities in order to protect their assets.

Until recently, Generally Accepted Accounting Principle (GAAP) rules required private companies to consolidate these entities (known as variable interest entities, or VIE) for financial reporting purposes, thus making the reporting...

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Perks, Pitfalls of Mixed Use Properties

As people increasingly choose to live, work and play in centralized locations, developers and investors are taking advantage of this trend by building more mixed-use properties. These properties can be extremely profitable as their various sectors—retail, office, residential—build in a set customer base for each other and can have a positive impact on the town. To that end, some governments have taken note and, thus, have decided to provide monetary incentives for developers to build...

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Perspective in Real Estate: Investing in Single-Family Homes

Private equity firms are betting big on the housing market. In the past, the typical “home flipper” has usually been considered an amateur investor who taps a home equity line or savings for an investment property; today, numerous private equity firms and hedge funds are crowding into this space. They purchase single-family homes – often foreclosed on or heading that way – and either convert them into rental properties or refurbish them to sell for a quick profit.

According to The Wall Street...

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Ground Leases: Intermediate Rentals

In an uncertain real estate market, owners of property may not be willing to enter into a long-term rental or current sale at current prices. If this occurs, the ground lease may be an alternative. In such an arrangement, the tenant agrees to pay all taxes and maintain the property in good condition. Ground leases usually run for 10 or more years and can run upwards of 99 years. This permits the lessee, such as a supermarket, restaurant or other retail properties, the incentive to make...

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Impact of Tangible Property Regulations on Real Estate Companies

On September 13, 2013, Treasury released the highly anticipated final tangible property regulations. These regulations will affect virtually all taxpayers that acquire, produce or improve tangible property. Real estate companies have many expenditures, including acquisitions, upgrades, remodels and repairs, which will be subject to this new guidance. These new regulations will likely have an impact on the tax accounting for these costs.

Background

The new regulations have been in the works for...

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Green is the New Black: The Momentum Continues for Energy-Focused Building Trends

With the continued growth of the commercial real estate, government, university, nonprofit and school construction markets, Green building tax credits and initiatives are steadily gaining acceptance and traction in the real estate and construction industry.  Automation controls and cloud-based systems increase energy efficiency for any building. Developers and building owners are striving to create zero-net-energy buildings.  Although it can be more costly initially, the obvious savings in Green...

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Check Out This Infographic: 2013 Real Estate & Construction Industry Survey Results

Every year, Skoda Minotti surveys members of Northeast Ohio's real estate and construction industries to get a pulse of what they've experienced over the past year, and what they're predicting to occur in the coming year.

Topics covered this year included:

  • Ohio Construction Reform
  • Healthcare Reform
  • Tax Reform
  • Bonding
  • Lending
  • Green Construction
  • Outlook for 2014 and beyond

Download This Year's Results

This year's survey results have been compiled and are available to you in two forms:

  1. View our Survey Results...
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Two Skoda Minotti Employees Achieve Distinctive Construction Industry Designation

The Board of Trustees of the Institute of Certified Construction Industry Financial Professionals, (ICCIFP®) of Princeton, New Jersey, has awarded Kenny Goodwin, CPA, CCA and Randy Bosley, CPA, CCA  the prestigious Certified Construction Industry Financial Professional (CCIFP®) designation certification.

Goodwin and Bosley join over 875 active CCIFP®s across the United States and 40 certificate holders in Ohio demonstrating their continued commitment to excellence and mastery of the knowledge...

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Five Ways to Build Profitability in the New Construction Landscape

Since the economic downturn, construction firms have been constantly adapting to the new industry environment.  Shrinking profit margins, reducing staff, and cutting overhead are just a few examples of ways companies are trying to stay above the line and build profitability.

However, it is important to take a step back and ask yourself, “Does my company operate from a place of ‘disconnect’?”  Meaning, have you given thought to merging the accounting and operations activities of your company to imp...

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