Sector Insights: Construction
Winter, 2018

Welcome to  Sector Insights... offering construction industry executives the latest tax, business and financial news affecting your sector. 
And ultimately, your success.

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GOP tax plan could lower home prices, instigate a housing recession, trade groups say - Two powerful trade associations slammed the GOP tax plan last week, saying the capping of the mortgage-interest deduction on new homes could dampen the benefit of the deduction and may lower home values.
 
Record construction spending in October, driven by public and private outlays - Overall construction spending reached a record high in October, although public-sector investments in infrastructure continued to lag earlier levels, according to an analysis of new government data by the Associated General Contractors of America.
 
Should you consider a "captive" for your insurance program? (via RBF Knowledge Center)  - Traditionally, insurance companies set their rates by averaging claims by class-of-business, and then apply those rates to every customer in that class.  But is it fair that companies with minimal losses end up subsidizing competitors with above average claims? RBF guest columnist Mark Kingston has a better idea

Before you flip that house, study up on tax consequences - When it comes to flipping, the most important consideration, tax experts say, is how long you hold a property. In a recent Philadelphia Inquirer  story  about the tax consequences of house-flipping, RBF partner Bill Rucci weighs in on the tax traps to avoid.
 
Employers:1099 forms due sooner than usual (via RBF Knowledge Center) - The earlier deadline of January 31 makes it easier for the IRS to match employer payments with what individuals report on their tax returns, writes RBF tax specialist Daniel Kretzenger. But the date may add unwelcomed pressure to contractors and other business owners. 
 
The punch list ... RBF partners Jack Malley and Vinny Botta and OASyS CFO consultant Ambuj Jain have been on the road enlightening local banks and construction trade organizations about coming changes to revenue recognition and lease accounting rules. The team presented to the Associated Subcontractors of MA in late November, and will meet with the Associated Builders & Contractors of MA in January... RBF managing partner Bill Rucci spoke at a recent seminar in Worcester for construction industry executives sponsored by Marsh & McLennan. The event theme, "Does the Future of Your Business Keep You Up at Night?" included discussions about the  valuation, tax and accounting aspects of selling a business.
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