Joint Venture Proportional Consolidation

The Report of Its Death is Out of Proportion Construction Joint Ventures What is a construction joint venture (JV) anyway? And why do construction companies enter into such JVs? And, does US GAAP still permit the investing company the choice to use proportional consolidation, instead of the equity method, to present a construction JVs in its financial statements? This article will attempt to shed some light on these questions. What is a Construction Joint Venture? A construction JV is generally a legal entity of limited duration, usually between two construction companies, to join forces to bid, obtain, perform, and complete Read More »

Income Tax Questions and Answers

Declare the Pennies on Your Eyes It’s tax season. Clearly, not the most wonderful time of the year. I know that the day I sit down to prepare my income tax return every year is somewhat of a cloudy, rainy day. So I put it off for as long as possible. I think the vast majority of people feel the same way. It’s a real drag getting everything together and organized. Nevertheless, this month’s blog will be devoted to that subject again, federal income tax. Below are some income tax questions and answers that may apply to your situation. If Read More »

Income Tax Changes Affecting Individuals in 2021

A Few Changes to What Is Certain Below are some of the changes that may affect your 2021 tax returns. A few of the changes noted below are routine, such as the increases in the standard deduction. However, many changes directly result from recent legislation intended to soften the financial impact of the pandemic. As the great statesman said, “nothing is certain but death and taxes.”And while taxes are certain to impact us all, it is just as certain that they will continually change. Standard Deduction. Most U.S. taxpayers take the standard deduction. The 2021 standard deduction for all filing Read More »

Employee Retention Tax Credit

Financial Statement Presentation of Government Grants Our last blog, dated December 21, 2021, made mention of the employee retention tax credit (“ERTC”). This tax credit originated from no less than three separate acts of Congress over a twenty-one-month period in 2020 and 2021. The legislative purpose was to provide economic assistance to entities suffering from the COVID-19 pandemic. While this series of laws tended to make the ERTC more generous, it also added much confusion and complexity. Not a big surprise when it comes to such a widespread government program. The structure of the ERTC was to provide refundable payroll Read More »

A Few Predictions for 2022

Hold on to Your Hat As we approach the end of 2021, we find ourselves two years into a “once-in-a-century” pandemic. Unfortunately, at the time of this blog, there is no apparent clear path to an end. Instead, the virus seems to have a life of its own, as evidenced by its various mutations. The pandemic, and our response to it, has precipitated business closures, supply chain disruptions, travel issues, employee shortages, work stoppage, interruptions in the education of our children, anger, and, most tragically, the loss of life and health. On the macro level, collectively, this has led to Read More »
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