Tax Treatment of Common Real Estate Exit Strategies

By Ruby Castaneda

Every real estate investor’s goal is to earn income from the cash flow and the appreciation of their investment. While it’s preferable for an investment to show no taxable income while having positive cash flow during the period of ownership, the sale or disposition of such an investment creates a challenge from an income tax…

IRS Proposes New Regulations for Basket Contracts: Are You Affected?

By Allison Katz

Recently, the Internal Revenue Service (“IRS”) released proposed regulations on the treatment of certain basket contracts, potentially classifying them as listed transactions. The term “basket” is defined by the proposed regulations under 1.6011-16(b)(6) as “a notional basket of assets that may include: actively traded personal property as defined under § 1.1092(d)-1(a); interests in entities that trade…

Tax Planning Guidance for Newly Promoted Law Firm Partners

By Ruby Castaneda

Becoming a partner in a law firm is a significant milestone, but it also comes with important financial considerations. Let’s explore some key points related to new law firm partners and their tax situation. Tax Implications for New Law Firm Partners Financial Planning Checklist for New Law Firm Partners This guide will help new law…

Dealer Vision: Summer 2024

By Allison Katz

Rev up for the Summer 2024 issue of Dealer Vision! This newsletter is fueled with insights to drive your dealership in the right direction. Learn more about the latest on warranty reimbursement laws, work-in-process reconciliation, and tips for managing your dealership’s assets, especially cash. Inside This Issue View Interactive Newsletter

Cash Is Still King

By Allison Katz

It has been an excellent run for the new dealership industry over the past few years. Profits were at all-time highs, and you finally figured out the business. It had nothing to do with the law of economics, where the demand outweighed the supply. It had to do with the fact that you finally put…

The Mystery of Work-In-Process

By Allison Katz

Work-in-process reconciliation is often a misunderstood accounting task, so we would like to take an opportunity to review it. Accounting never matches the service department’s WIP report. As a result, many of us were taught to make an entry to make them match. Just debit or credit the WIP inventory and offset the difference against…

Warranty Reimbursement Laws — It’s Time for an Update

By Allison Katz

All fifty U.S. states now have provisions in their dealer franchise laws that require automotive manufacturers and/or distributors to reimburse car dealers at the same retail rates that the dealers charge to their customers for both parts and labor. Some of these laws have been on the books for over 15 years and, during this…

DFARS Accounting Systems: Ensuring Compliance and Accuracy

By Allison Katz

The Defense Federal Acquisition Regulation Supplement (DFARS) outlines specific requirements for contractors’ accounting systems. These systems play a crucial role in ensuring accurate financial reporting, compliance with regulations, and effective cost management. Let’s delve into the key aspects of DFARS accounting systems and their significance. What Is an Accounting System? DFARS 252.242-7006(a)(2) defines an accounting…