Accounting and Finance

Accounting & Finance

What Could the Tax Treatment of Losses Incurred by an LLC or LLP Mean for Your Construction Business?

Written by Adam Polakov

Tax Treatment of Losses Incurred by An LLC or LLP

There has been a long-running battle over the tax treatment of losses incurred by limited liability companies (LLCs) and limited liability partnerships (LLPs). Recently, the IRS lost a key battle in its fight to limit tax deductions that can be taken by investors in small businesses. The recent Tax Court decision, Garnett v. Commissioner, 132 T.C. No. 19 (2009) (Garnett), is a case that could have broad implications for entrepreneurs, investors and small business owners. The Tax Court decision may allow investors in most kinds of businesses to offset ordinary income with losses incurred in pass-through investments such as LLC and LLP interests.

Tags: 2010 March Issue , accounting and finance , financial

Written by Leslie Guajardo

Despite the many financial risks contractors face, some still do not implement thorough job-costing procedures. For them, job costing is something only the largest and wealthiest firms can afford-a misconception that partly explains why so many construction companies go under.

Tags: accounting , financial

Surety Outlook for 2010

Written by Doug Irvin

In early 2010, the surety industry finds itself feeling like coastal residents in the Southeastern United States do when monitoring a Category 5 hurricane in the Atlantic Ocean. So far, other than some brief thunderstorms, the weather has been relatively calm. But there is a lot of trepidation about where the storm will hit. Will it still be a Category 5 or reduced to a tropical storm when it reaches land, and if so, how long it will last and how much damage it will cause?

Tags: 2010 February Issue , accounting , financial

Written by Adam Polakov

There has been a flurry of tax-related legislation since President Obama took the oath of office. On February 17, 2009, the President signed the American Recovery and Reinvestment Act of 2009 (ARRA), a $790 billion stimulus package intended to spur the American economy.

Tags: 2010 January Issue , accounting , financial