Construction Industry Insights from the CICPAC Conference

August 15, 2016 by Yeo & Yeo

Recently I attended the Construction Industry CPAs/Consultants (CICPAC) conference in Chicago. The conference is held annually and provides Yeo & Yeo professionals with the latest knowledge of construction industry challenges, and valuable insight that we will use to advise our clients.

I attended eight sessions, and I would like to share my notes about the following topics that I consider especially important to our clients.

1. Be aware of the most common reasons why contractors fail.

Ryan Howsam of FMI, a leading management consulting firm dedicated to serving the construction industry, says that the most common root causes for failure include the following:

  • Not planning resources needed to complete jobs
  • Taking on projects...

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Pro Bono CPA Services for Growing Companies in Michigan

July 1, 2016 by Yeo & Yeo

Yeo & Yeo CPAs & Business Consultants is going into its fourth year of helping to advance Michigan’s growth by nurturing companies through pro bono services under the Pure Michigan Business Connect initiative. This initiative, developed by the Michigan Economic Development Corporation (MEDC), connects early-stage Michigan companies with professionals who will provide legal, accounting and other services at little to no cost.

In January 2013, Yeo & Yeo committed to donate up to a grand total of $250,000 in services to select Pure Michigan Business Connect program participants over a five-year period, 2013 through...

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Don't Overlook Miscellaneous Itemized Deductions

May 9, 2016 by Yeo & Yeo

Many people itemize deductions on Schedule A of their tax returns, rather than taking the standard deduction. Your tax preparer will generally advise you to do so if your allowable itemized deductions exceed the standard deduction.

Most itemized deductions are well known and fairly well-understood. Examples include property taxes, home mortgage interest, state and local income taxes, charitable donations and medical expenses.

But you can also write off miscellaneous itemized deductions. These are less well known and not always understood, so you may be missing out. Here's what you need to know to keep that from happening.

Deduction Basics

Miscellaneous itemized deductions fit into two categories.

    1. Items that, when added together, can be deducted only...

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Tax Breaks for Green Vehicles

April 14, 2016 by Yeo & Yeo

If you opt to purchase one of these energy-efficient vehicles, you can qualify for a federal income tax credit in 2015 and 2016:

Fuel cell vehicles. You can claim a credit for a qualifying vehicle that's propelled by chemically combining oxygen with hydrogen to create electricity. This credit expired at the end of 2014, but the PATH Act extended it to cover qualifying vehicles purchased in 2015 and 2016.

The base credit is $4,000 for vehicles weighing 8,500 pounds or less. Heavier vehicles can qualify for credits of up to $40,000. An additional credit of between $1,000 and...

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Value Your Business Internally and Externally When Planning Your Succession or Estate Plan

February 25, 2016 by Yeo & Yeo

While preparing your succession or estate plan, it can be helpful to value your family business both internally and externally.

You might wonder what that means — because you think your company has just one value. In fact, it can have multiple values depending on the valuation standard used. The different results can help you determine whether to keep the family business, pass it on to the next generation or sell it to an outsider.

Two common standards used in valuing a family business are:

1. Investment value. This gauges internal value, which represents the value to a particular investor based on individual investment requirements and expectations. In layman's terms, it is what the business is worth to the...

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Another Tax Break for Research Expenses

February 5, 2016 by Yeo & Yeo

The research credit isn't the only tax break available for research activities. Section 174 of the tax code allows taxpayers to elect to either: 1) deduct "research or experimental expenditures" or 2) amortize the costs over a period of not less than 60 months. Qualified expenses are limited to the following:

  • In-house wages and supplies attributable to qualified research,
  • Certain time-sharing costs for computer use in qualified research, and
  • 65% of contract research expenses, that is, amounts paid to outside contractors in the U.S. for conducting qualified research on the taxpayer's ...

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