Month: November 2017

Construction Industry Accounting & CPA Services in Houston TX

Construction blogger

Construction Industry Accounting & CPA Services in Houston TX

For years we have worked with all types of construction contractors… everything from commercial and residential general contractors, to subs like roofers, electricians, commercial plumbers, HVAC and utility contractors. You could say it’s in our blood.

You see, our founder’s (Jim Trippon CPA) father was a custom homebuilder, and Jim grew up pounding nails. In fact Jim could install 3 tab shingles and roof flashing before he ever got his first drivers license, let alone before he went to college to become a CPA.

We have found that very few CPAs have a passion for the construction industry. Most don’t even know that many of their contractor clients qualify for a special deduction to save them 6% on their federal income tax every year.

What we’re talking about is the Domestic Production Activities Deduction (which can be deducted using IRS Form 8903). This special deduction allows many construction contractors to deduct 6% of net income derived from qualified “production” activities. There are some limitations, but most construction contractors that do new construction projects can qualify.

There has never been a more crucial time for construction contractors to pay more attention to their tax preparation and tax accounting details. By reducing their tax liability, construction contractors can protect themselves against increasing taxes and income assessments by the IRS. Here are a few tips on how to effectively reduce your tax liability in the construction industry.

Maximize capital asset deductions. Recent tax laws have increased the fixed asset cost expense up to $250,000 for construction contractors. Construction contractors can take advantage of this deduction as long as less than $800,000 of the company’s assets are in service within the given year.

Capital Gains & Dividend tax rate increases. Under the current law, expect it to change with the new presidential administration, capital gains and dividend are taxed at 15%. This issue is something that you will definitely want to consult with your tax CPA. These tax rates are under close watch Congress and the presidential administration.

Tax Rebate. Most of the economic stimulus checks have been delivered. However, there are additional funds that may be available. The economic stimulus checks were actually an advance on the 2008 tax liabilities. The amount of each person’s check was based on income from 2007 & 2008. So if there was significant changes in income there may be additional rebate funds that are available.

Depreciation Deductions. Investments in equipment can be partially deducted in the first year of use. Contractors are allowed to deduct of the cost investments made in a calendar year during the first year of use. Construction contractors can then depreciate the remaining half of the asset purchase over its normal useful life.

Beware of the “Kiddie Tax.” Since most construction contracting companies are family owned and operated, the kiddie tax has been extended to require excess unearned income of full-time students under 24 years of age, to be taxed as marginal income at the parent’s current tax rate. This may not apply if the student’s earnings equal of their support. You will definitely want to consult with your tax CPA regarding retirement planning options and monetary gifts to avoid increasing your tax liability on dependents over 18 years of age.

If you would like to work with a CPA firm that understands the construction industry and will work hard to make sure you do not pay a penny more than you owe give us a call at 713-661-1040.

At Trippon & Company CPAs we use our 30 years of experience in construction industry to minimize your Federal tax liability. Call us at 713-661-1040 and put our experience at work for you TODAY!

Construction Management Jobs For Felons – How To Get Hired

Construction blogger

Job opportunities for felons are often few and far between. To increase your chances of getting the best jobs for felons, you should choose an industry that is unrelated to your felony and where jobs are in high demand. It is also helpful to choose a profession, such as construction management jobs for felons, where you can be self-employed.

Construction administration jobs for felons are also known as project management or construction project management. Managers in this field are trained to oversee the planning, design and actual building of construction projects.

It is a very promising field of study right now because the employment opportunities for these managers is expected to exceed the number of qualified workers from now through 2014, according to the U.S. Bureau of Labor Statistics. This high demand and shortage of trained construction managers means that there are many job opportunities for felons available in construction management.

What kinds of jobs for felons are available in construction management?

Job opportunities for felons include construction estimating, construction safety, construction project management and building code compliance. The construction managers duties include keeping an eye on the big picture and making sure that the construction project is completed on time, does not go over the budget, meets quality standards and conforms to building codes. If the construction project is quite large, there will be many construction managers working on different tasks.

To be a good construction administrator, you have to like working with people. You will have to work not just with the owner-client but also with architects, construction workers, subcontractors, quantity surveyors, health inspectors, safety inspectors and other such people. Construction management may be a good choice for you if you are a good communicator who loves leadership roles. This is not the right career for shy people.

Also, since problems are bound to crop up with both large and small-scale construction projects, you need to be able to keep your cool while under pressure. Decisiveness and self-confidence are the two most important qualities that a construction developer should have.

Construction Management Jobs for Felons

Construction management is suitable for ex-felons because it is a job that is in high demand due to the shortage of qualified and experienced managers. This is also the type of job where people care more about experience and results than your felony.

Additionally, managers can be self-employed which is a good idea for ex-felons who are finding it hard to get employment. Most constructing managers work on a contract basis since construction projects are contract-based. However, it is also possible to get a salaried job within a construction company if you prefer a more stable type of job.

Since this is a managerial job, the pay is higher than average so this is a good career choice for those who are looking for high-paying job opportunities for felons.

Jobs for Felons: How to Get a Job in Construction Management

Construction education comes in two basic forms: one-year associate degrees and four-year baccalaureate degrees. Nowadays, many colleges also offer online courses as well as on-campus courses.

Generally, managers will either start at entry-level or mid-level jobs after graduation. Another career path that is popular for ex-felons is to work in construction and then take night or online classes to get a management degree in construction. This helps them get a promotion to a management or supervisory position.

It is also possible to specialize in certain construction projects which may improve your employability if these specialties are in demand. For example, some construction companies specialize in the restoration of historic homes and buildings. Experience or expertise in a specialized type of construction is quite valuable and makes getting the best jobs for felons easier.

Construction management jobs are projected to grow rapidly in the next few years so it is a good career choice for people looking for job opportunities for felons. A degree in construction management will greatly help you to land a job in construction project management. These managerial jobs for felons pay well but they are suitable only for those who are willing to put up with the stress of leadership roles.

What You Should Know About Theft of Construction Equipment

Construction blogger

People often think that it’s basically impossible for construction equipment to be stolen, since it would be pretty noticeable if someone started driving a crane down the street. But, many construction equipment thefts are easy to conduct for quite a few different reasons. It’s actually really easy to get away with, and has become commonplace in countries such as the US, Canada, Japan and Europe. People should, therefore, be made aware of such thefts going on in their areas.

Because construction equipment doesn’t come with doors or locks, they are easy for burglars to break into. Thieves feel that hi-jacking construction vehicles is a piece of cake compared to most other types of vehicles. And people won’t be able to tell if the equipment being driven is being operated by a thief or construction worker. Most people wouldn’t recognize a piece of construction equipment if it was camouflaged somehow.

Thieves find it beneficial to steal this kind of equipment because it can command a high price on the black market. Forklifts alone can fetch a price of $12,000 to $50,000, and thieves could sell a generator for $150,00 a pop. Because constructions sites often have lots of these kinds of equipment, it’s easy money for clever thieves. Criminals are very fond of stealing construction vehicles for these reasons, not to mention the fact that most construction sites are unsecured and the vehicles are left out in the open with no protection.

The problem has become too severe to be ignored any longer. According to statisticians in Japan, roughly 450 pieces of construction equipment was stolen in 2008 alone. While in the united states, the National Insurance Crime Bureau found that nearly a billion dollars in construction equipment is stolen and sold each year on the black market.

To date, numerous government agencies and manufacturers of construction equipment have tried their best to prevent this theft from continuing. In the UK, construction equipment registration systems make it easier for the police and the companies who own the equipment to recover their stolen goods.

The Importance Of Construction Quality Control To Avoid A Bad Home Builder

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In any project or endeavor, whether it is for business or for personal reasons, quality of work, product or materials is a very important aspect that will give you the assurance of getting the best results. This is true even on a home renovation or home remodeling project, whether your project is located in Boston, Massachusetts or somewhere else like Alaska or Hawaii, and applying good quality control can help you avoid a bad home builder.

A bad home builder will not only ruin a perfectly great project concept or idea, but he could also ruin existing structures and furnishings as well particularly if the home remodeling job or work is being built around a previous construction. This could spell irreparable damage or defacement in your home that would not only cause additional cost for the homeowners but it would also cause considerable inconvenience on their part.

The only way to avoid such a predicament is to implement good construction quality control before, during and after the home remodeling project. According to custom-building experts from Divisions Unlimited Incorporated, a good home builder should take his work as a vocation and would go out of their way or even take the extra mile just to provide excellent and high-quality work and results for their clientele.

A Homeowner’s Woes with a Bad Home Builder

According to consumer reports as far back as 2004, 15 percent of new homes that were built during that period where discovered to have at least two major construction flaws or defects. Translate that to the total number of homes built, the figures would amount to approximately 150 thousand homes that have serious defects of some kind. In other reports, home inspectors have confirmed that at least 85 percent of complaints lodged by homeowners where confirmed as legitimate quality concerns.

These figures reflect bad home builders that are either incompetent with their line of work or those who are trying to defraud their customers. In some cases, the home builder hired for a particular work like a bathroom remodeling or a kitchen remodeling project is competent and provides good quality work. However, he may have hired a subcontractor to do additional work for him or work that he is not totally familiar with, and the subcontractor provided a sub-par work. Hiring a subcontractor is allowable however the main contractor should be responsible for the work of the people he hires.

Understanding Construction Quality Control

A good home builder does not take any shortcuts in his work, except in making it more productive without sacrificing any quality. A good contractor takes full responsibility with their work and would replace any item or section that is damaged from his work. This should also hold true if the contractor made a mistake and would have to rework. It is for this reason why general contractors have a general liability insurance policy.

In home renovation or home remodeling, work by new contractors would be done over or within a completed job performed by another home builder. In this case, the contractor should implement construction quality control practices that would ensure that no damage to existing goods, fixtures and surfaces would be incurred. Blemishes or damages to existing items are totally unacceptable and the home builder should be totally liable for these damages.

As in everything else, communication is the key and this also applies to maintaining good construction quality control. The homeowner and the home builder should agree on the quality standard that is expected of the project before commencing so everything would in black and white to avoid any disagreements later on.

Steel And Pipe Used For Anything From Cars To Construction

Construction blogger

There are probably as many different Stainless steel pipe products on offer in the market as there are different uses for them – and with steel used in almost anything from construction to packaging, it’s hard to keep track of all the different types.

While steel manufacturers have different specs for steel and pipe on offer, there are some broad categorizations to help users make informed decisions.

Firstly, all steel and pipe are alloys in which iron is mixed with carbon and other elements. Steels are therefore described as mild, medium- or high-carbon steels, depending on the percentage carbon they contain. The higher the carbon content, the harder the steel will be.

Metals such as nickel and chromium can also be added to produce alloy steels, for example stainless steel, which is used in high-end, quality steel products. Galvanized steel is coated with zinc to prevent corrosion, for example for the use of roof sheeting.

Galvanized pipe is also mainly used in construction, while corrugated steel pipes will be used more often for drainage, sewer and transportation. Seamless pipe, made from high-quality steel, is used for steam boilers and pipelines.

Steel products can be divided into two groups – flat and long products. Flat steel is used in the manufacture of cars, electrical products, sheeting, coils and pipes. Long products, on the other hand, are mainly used in construction.

Steel and pipe buyers will also come across the terms hot rolled and cold rolled steel. This refers to the heat treatment given during the production process, and has an impact on the qualities of the product. Cold rolled products are normally harder and more brittle, while hot rolled steel and pipe will be softer.

In addition to the different qualities of steel and seamless pipe products, they are also available in a wide variety of different sizes and thicknesses.