The latest edition of BDO’s Real Estate and Construction Newsletter features key topics including R&D tax credits for construction companies, real estate trends, re-evaluation of REIT strategies, and the mitigation of phishing schemes for real estate and construction companies.
Not too surprising were the results of our latest survey of residential furniture manufacturers and distributors. New orders were 5 percent lower in July 2016 than July 2015. July 2015 orders were 4 percent higher than July 2014. The decline in July brought the year-to-date results to basically flat with the first 7 months of 2015.
Gift or estate taxes (and possibly generation skipping taxes) are imposed on the value of all property transferred during life and at death. New proposed regulations regarding estate planning and valuation discounts were released on August 2, 2016, and if they become final, would significantly impact the availability of minority interest and lack of control discounts for transfers of privately held business interests among family members. In general, the effective date of these new regulations will be the date the regulations are published as final (which is expected to occur in the spring of 2017). It is imperative that clients wishing to transfer interests in closely held businesses to family members complete the transactions this year to avoid the application of the potential new rules.
The Financial Accounting Standards Board (FASB) has released the Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. The standard aims to improve presentation of financial information, ultimately making nonprofit financial reporting statements more informative, transparent and useful to readers. Key qualitative and quantitative requirements covered in the final ASU include net asset classes, investment return, expenses, liquidity and availability of resources, and presentation of operating cash flows.