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Construction Corner

What Differentiates a Smart Contractor from the Competition?

The construction industry has one of the highest failure rates, and the past few years have only reinforced this statistic. Yet, at Abbott, Stringham and Lynch, we’ve come across some contractors that have not only weathered this storm, but have come out on the other side stronger than before.  
How have they managed to improve in the face of so many challenges?  We believe that 6 basic strategies have helped them to thrive…read more.

Contractors Likely to See Increased Tax Liability in 2012

The IRS issued new temporary repair and maintenance regulations, Section 162 and Section 263(a), that will likely increase the tax liability of contractors on their 2012 tax returns, according to CPA Rob Trammell, a principal at the accounting firm of Abbott, Stringham & Lynch. “The new regulations fundamentally change the definition of a ‘unit of property’ in a way that significantly restricts the expenditures that can be expensed,” said Trammell…read more.

Did You Know that Contractors Licenses Can be Issued to LLCs?

Beginning in January of 2012, the Contractors State License Board (CSLB) was authorized to issue contractor licenses to Limited Liability Companies (LLCs).  There is specific criteria for receiving a license as an LLC, including various insurance and bonding requirements.  Before investigating if you meet the requirements, ask yourself if being a LLC is right for your business.  Rob Trammell, a partner in our Construction Group, spoke about the new requirements and the pros and cons of entity choice at a recent Builder’s Exchange meeting.  To learn more about the new requirements and the issues surrounding your choice of business entity, please contact us today.

Rob Trammell Joins The Builders’ Exchange BOD

ASL is pleased to announce that ASL Principal in Charge of Tax and Construction Rob Trammell, CPA, was nominated and confirmed to the Builders’ Exchange of Santa Clara County Board of Directors for a three year term, beginning January 2012.

The Builders’ Exchange is a nonprofit association of subcontractors, general contractors, architects, engineers, material suppliers, manufacturer representatives and others closely related to the construction industry.  The governing board of the Exchange is an elected cross-section of construction business professionals.  The Exchange’s goal is to provide a central location to meet and review current construction projects and to collect timely industry information.

For more information about the Exchange, please contact Mike Miller, Executive Director, mm@bxscco.com.  For more information about ASL’s Construction Group, please contact Rob Trammell, rtrammell@aslcpa.com.

Alert: Bonus Depreciation for Assets

2012 brings the limitation on bonus depreciation for assets down to 50%, which still leaves your glass half full.  In 2011, there was 100% bonus depreciation for assets placed in service during 2011.

Dimensions Newsletter

>A CPA’s Report for the Construction Industry

>See All Dimensions Newsletters

ASL Construction Group

With insight and assistance from the ASL Construction Group, you can give your business a competitive edge by:

  • Improving cash flow to free up resources you can use to strengthen and expand your position in the marketplace.
  •  Increasing operational efficiencies that can improve your profit margins by reducing scope-creep and other avoidable costs. 
  •  Improving your management team’s decision-making by getting more accurate and more timely data.
  •  Giving time back to your staff to focus on more proactive and forward-looking work instead of being consumed with management of historical data and compliance requirements.

We help you to realize these benefits through effective tax strategies, efficient accounting processes, and the audit process.  

The ASL Construction Group specializes and has significant experience in servicing sub-contractors that is based upon:

  • The significant number of our clients in this area.
  • Our 10-person strong team and low employee turn-over.
  • The high number of CPE training hours in construction in which our people participate to continually develop their technical knowledge.
  • We are active members of The Builders Exchange, CFMA, and NAWIC, and stay current on industry issues and developments to keep our fingers on the pulse of trends and issues.

We understand your issues as we have worked through them before, and we can bring unique opportunities to your attention.

In addition to the ASL Construction Group, the ASL Family Wealth Planning Group can also assist your owners, founders, or other executives with their unique needs in personally providing for and protecting their families’ futures.