All posts tagged CPA

FOUND An alternative business career using online search skills

By admin on

If you are getting tired of working for someone else or would like to explore how to make more money and develop an alternative career that can free you from your current job … then please give this article a thorough read. It discusses how to take skills you may already possess and interest you may already have to help you start a brand new career or explore alternatives to what you are doing now.

Chances are that you are reading this article online or found it online and printed it out to read later. The internet has become a powerful and essential tool for many people for information, entertainment and education. But did you know that you can use a simple a tool as your web browser and internet access to make money from what you find online?

Yes, you can and this article will tell you how you can do it.

There are many industries that the concept we are going to discuss could be applied to but we are going to focus specifically on one: the Mergers & Acquisitions Industry (M&A).

The M&A business for many years was predominantly limited to insiders who had connections with each other (it was called, the old boys network). These insiders made millions of dollars by sharing information between themselves as to which companies were for sale and who wanted to buy them. As mergers and acquisitions matchmakers (also called finders), they brought the seller and buyer together and made their huge finders fees.

Now all that has changed; the Internet makes it possible for anyone using a computer to research and access business information that was previously hard to find and often available only to the ol boy insiders. And you can earn a finder or referral fee for introducing business buyers and sellers that result in a closed transaction.

Lets approach our discussion on this in the form of a Question & Answer session:

Is the Mergers and Acquisitions business really that profitable?

Absolutely. And being a finder for M&A deals can be a very lucrative home-based profession.

You can think of it like being a real estate broker, only you match buyers and sellers of businesses, instead of homes. As a real estate broker you can sell a house for $100,000 or you can sell a house for $1 million. The more expensive the house, the more commission you earn. M&A finder or referral fees can be a lot more, since businesses transactions can be quite larger than a residential real-estate transaction.

M&A Deal Finders do matchmaking with businesses that have at least $1 million in sales and go all the way up to $100 million in sales, on that basis alone; being a matchmaker in acquisitions and mergers is a much more profitable business than being a real estate broker.

You are an intelligent person, but you dont have an MBA degree or a law degree; will you be able to do Mergers and Acquisitions matchmaking?

To answer this question, lets take our example of being a real estate broker. You show a home for sale, the buyer either likes the home or they dont. If they dont like it, you take them to another home until they find the one they want. Mergers and Acquisitions works exactly the same way, only you use the power and information found on the internet to find what business buyers and investors are looking for and then find business owners and sellers that match what the buyers/investors are looking for and all of the research is done on the computer using the internet to find businesses. Obviously having specialized learning, education or training will be of help to you in any business but you do not have to be a lawyer, CPA or have an MBA in order to be a successful Finder.

Construction Industry Accounting & CPA Services in Houston TX

By admin on

Construction Industry Accounting & CPA Services in Houston TX

For years we have worked with all types of construction contractors… everything from commercial and residential general contractors, to subs like roofers, electricians, commercial plumbers, HVAC and utility contractors. You could say it’s in our blood.

You see, our founder’s (Jim Trippon CPA) father was a custom homebuilder, and Jim grew up pounding nails. In fact Jim could install 3 tab shingles and roof flashing before he ever got his first drivers license, let alone before he went to college to become a CPA.

We have found that very few CPAs have a passion for the construction industry. Most don’t even know that many of their contractor clients qualify for a special deduction to save them 6% on their federal income tax every year.

What we’re talking about is the Domestic Production Activities Deduction (which can be deducted using IRS Form 8903). This special deduction allows many construction contractors to deduct 6% of net income derived from qualified “production” activities. There are some limitations, but most construction contractors that do new construction projects can qualify.

There has never been a more crucial time for construction contractors to pay more attention to their tax preparation and tax accounting details. By reducing their tax liability, construction contractors can protect themselves against increasing taxes and income assessments by the IRS. Here are a few tips on how to effectively reduce your tax liability in the construction industry.

Maximize capital asset deductions. Recent tax laws have increased the fixed asset cost expense up to $250,000 for construction contractors. Construction contractors can take advantage of this deduction as long as less than $800,000 of the company’s assets are in service within the given year.

Capital Gains & Dividend tax rate increases. Under the current law, expect it to change with the new presidential administration, capital gains and dividend are taxed at 15%. This issue is something that you will definitely want to consult with your tax CPA. These tax rates are under close watch Congress and the presidential administration.

Tax Rebate. Most of the economic stimulus checks have been delivered. However, there are additional funds that may be available. The economic stimulus checks were actually an advance on the 2008 tax liabilities. The amount of each person’s check was based on income from 2007 & 2008. So if there was significant changes in income there may be additional rebate funds that are available.

Depreciation Deductions. Investments in equipment can be partially deducted in the first year of use. Contractors are allowed to deduct of the cost investments made in a calendar year during the first year of use. Construction contractors can then depreciate the remaining half of the asset purchase over its normal useful life.

Beware of the “Kiddie Tax.” Since most construction contracting companies are family owned and operated, the kiddie tax has been extended to require excess unearned income of full-time students under 24 years of age, to be taxed as marginal income at the parent’s current tax rate. This may not apply if the student’s earnings equal of their support. You will definitely want to consult with your tax CPA regarding retirement planning options and monetary gifts to avoid increasing your tax liability on dependents over 18 years of age.

If you would like to work with a CPA firm that understands the construction industry and will work hard to make sure you do not pay a penny more than you owe give us a call at 713-661-1040.

At Trippon & Company CPAs we use our 30 years of experience in construction industry to minimize your Federal tax liability. Call us at 713-661-1040 and put our experience at work for you TODAY!