Long Hong has received the designation of Certified Public Accountant (CPA) in the Commonwealth of Massachusetts! In order to become a CPA, a person must obtain a college degree in Accounting, successfully complete a four-part examination and obtain two years of work experience with a certified public accounting firm. Long joins 3 other professionals of the firm who have obtained CPA status.
FOR THE RECORD
The Economic Stimulus Act of 2008 provides substantial tax benefits for real estate owners and developers through the reintroduction of Bonus Depreciation. Through the Act, 50% bonus depreciation is allowed on certain qualified property placed in service during 2008 only.
The types of property qualifying for the allowance are as follows:
o Qualified Leasehold Improvements
o Tangible Property (depreciated under 20 years by MACRS); and
o Off-The-Shelf Computer Software
Qualified Leasehold Improvements (QLI) are an excellent source of savings. For example, assume that a developer spends $1,000,000 building out a tenant space during 2008. Normally, most of these costs would be depreciated over 39 years as the 15- year QLI depreciation rule expired on December 31, 2007. Under the newly signed Act, a taxpayer is allowed to claim a depreciation deduction of 50% of the total expenditure of $1,000,000 in 2008. The remaining basis of the expenditure can be depreciated over 39 years. By taking this additional deduction, a taxpayer saves over $200,000 in 2008 income taxes from the previous tax rules (savings assume a combined 40% Federal and State tax rate).
A cost segregation study performed on the remaining basis of $500,000 above will yield additional tax savings as assets reclassified from real property (39 year) to personal property (5 or 7 year) and land improvements (15 year) are eligible for the 50% bonus. An engineering based cost segregation study will yield the maximum benefits. Some items eligible for accelerated and bonus depreciation include special millwork, electrical and mechanical connections, and certain types of flooring.
What Type of Tenant Lease Improvements Qualify?
o Improvements made under a lease either by the landlord or the tenant
o The improvements must be made to the interior of the current space - common areas, expanding the building, improving the internal structural framework, etc. do not qualify
o The building must be at least 3 years old (in actual age, not ownership)
o The improvements cannot be for a related party
o Signed contract dates and in-service dates are a large factor in determining eligibility
Filing Extensions Changing for Some Business Taxpayers
Later this Year
National Association of Certified Public Bookkeepers June 11-12,2008 Las Vegas, NV- CPE Credits: 16 NACPB is America's leading public bookkeeper association providing the nation's leading public bookkeeper association benefits, training, continuing professional education, certifications, and licensure.Their mission is to protect the public interest by helping to ensure that only qualified individuals provide public bookkeeping services and to help public bookkeepers develop highly profitable bookkeeping practices.
AAA National Practice Management Conference June 17-20,2008 Dallas,Texas - The event has been exclusively designed to help participants professionally manage accounting practices of varying sizes. The two-and-a-half day educational extravaganza has something for everyone involved in accounting administration. The event includes sessions that range from the beginner to the advanced levels. From the high-level technical sessions to the smaller breakout sessions geared to specific problem-solving and informal gatherings designed to facilitate networking and information exchange, the Conference has sessions for accounting administrators with one year of experience to those with over 30 years of experience.The Association for Accounting Administration (AAA) has more than 750 members nationwide. Its main objective is to develop and maintain, through cooperative efforts, a high level of professional skills required to satisfy members� growing professional needs in the field of accounting administration.
Crabtree CPA & Associates
426 North Street
Hyannis, MA, 02601 Phone: (508) 790-2727
