Commercial Lending: How to Spot “The Living Dead”

  • April 30, 2010

Zombies have long been popular among a certain segment of moviegoers, but what does this have to do with commercial lending? The present state of the economy and the small business segment, in particular, is starting to resemble a modern-day zombieland. There are a number of businesses today that can best be described as “the living dead”: They managed to survive the recession by aggressively managing receivables and inventory and delaying replacement capital expenditures, but are destined to fail once the recovery starts kicking into gear.

Commercial Lending: Deferred Tax Assets. The Good and the Bad.

  • April 28, 2010

When examining potential borrowers’ financial statements, some lenders are beginning to see something that’s unfamiliar to many of them: deferred tax assets. These are created as a result of timing differences that occur between book and taxable income for things such as depreciation and investment gains and losses. With more companies experiencing losses the past couple of years due to the recession, many are setting up deferred tax assets associated with their operating loss carryforwards in their financial statements. And there are many others that aren’t recording these deferred tax assets, but should be.

New Reports Indicate Housing Market Is Improving

  • April 23, 2010

With a nod to our last post featuring an article about increased spending on the rise, recent reports also indicate the housing market is improving. The National Association of Home Builders/Wells Fargo index of builder confidence increased this month more than economists forecast, and the Commerce Department reported that U.S. builders broke ground on more homes in March than anticipated.

Congress Completes Overhaul Of Health Care Law and Makes Many Tax Changes

  • April 21, 2010

More information to follow up on our first article regrading Health Care Reform. Passage of the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) Reconciliation Act) by Congress, followed by its signing by President Obama on March 30, 2010, completes a massive overhaul of the nation’s health insurance and health delivery systems.

Increased Spending Gives Rise To Optimism On Recovery

  • April 20, 2010

Economists are revising forecasts and predicting a stronger economic recovery as a result of surging profits. A wide range of companies are increasing spending, giving rise to the optimism. "Companies have a lot more capital, and they're going to deploy it for equipment and hiring rather than sit on it," said Joseph LaVorgna, chief U.S. economist in New York at Deutsche Bank Securities. "It's quite possible the economy produces a recovery significantly stronger than people anticipate."

Employers Wait On Certification Form For New HIRE Act Tax

  • April 2, 2010

The recently enacted Hiring Incentives to Restore Employment (HIRE) Act rewards employers who hire qualified unemployed workers with payroll tax forgiveness and a worker retention tax credit. However, the newly hired worker must certify that he or she meets specific unemployment criteria; otherwise, the employer will be ineligible for payroll tax forgiveness and the tax credit. Congress instructed the IRS to design a certification form and the agency has announced that the form will be available soon.

IRS Unveils Safe Harbor For Certain Failed Like-Kind Exchanges

  • April 2, 2010

The IRS has unveiled a much-anticipated safe harbor for participants in multiple-party like-kind exchanges under Code Sec. 1031 that have gone bad because of the default of qualified intermediaries (QIs) during the current economic downturn. The safe harbor for reporting gain or loss is available to taxpayers that initiated deferred like-kind exchanges but failed to complete the exchange due to a QI's default on its obligation to timely acquire and transfer replacement property when its assets are suddenly frozen in bankruptcy or receiverships.

HIRE Act Provides Payroll Tax Forgiveness and Worker Retention Credit

  • April 1, 2010

On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act. The $18 billion HIRE Act is expected to be the first of several "jobs" bills out of Congress in 2010. The new law encourages companies to hire unemployed workers and also retain existing workers by providing two key tax incentives: payroll tax relief and a worker retention tax credit. Employers can take a tax credit of up to $1,000 for the year if they hire an unemployed worker and retain the new worker for at least one year.

Health Care Reform 101: New Responsibilities and Taxes

  • April 1, 2010

Health care reform is now law and many employers are asking how does it affect my business and my employees? The first thing to keep in mind is that reform is gradual. The health care reforms and tax provisions in the new health care reform package play out over time, with some taking effect this year or next year but others not until 2014 and beyond. However, the health care package imposes significant new responsibilities and taxes on employers and individuals so it is not too early to start preparing.