When approaching each transaction, real estate professionals anticipate to achieve the best possible outcome. The property’s net operating income (NOI) is often the first metric they will assess in determining whether an investment is going to generate cash inflow. However, this metric will not be enough for a savvy investor. In most cases, investors need to evaluate the property’s highest and best use. This article discusses the fallbacks of NOI, as well as introduce two alternative financial metrics worth considering when investing in real estate property: Net present value (NPV) and internal rate of return (IRR).
After being continually renewed since the 1980s, the research credit was finally made permanent under the Protecting Americans from Tax Hikes (PATH) Act. This change allows manufacturers to plan (with certainty) for their research and development (R&D) expenditures. And, it is expected to survive any tax reform legislation that will pass in 2017. This article provides an overview of the current rules on how to claim credits for R&D spending, including how the break has been expanded for certain small manufacturers.
With baby boomers (the largest and wealthiest generation in U.S. history) expected to transfer trillions of dollars of assets in the next few decades, this could be the right time to launch an endowment. This article explains the two main types of endowments, describes the pros and cons and addresses managing assets and spending restrictions. “Quasi” endowments also are discussed.
Although the final property repair regulations have been in effect since 2014, the question we still are asked most is how a property owner can tell the difference between a repair and an improvement to a unit of real estate. Stated differently, which costs can be deducted, and which must be capitalized and depreciated? This article focuses on the Small Taxpayer Expensing Election and the Small Taxpayer Safe Harbor Rule which allows a “qualifying small taxpayer” to treat costs as deductible expenses. We will also look at the other safe harbors applicable to real estate: The Routine Maintenance Safe Harbor and the De Minimis Safe Harbor.
Law firms of all sizes have sensitive information that make them vulnerable to data breaches. This article outlines four strategies for preventing — or, at worst, minimizing the damage of — a cyber attack. These are encryption, employee training, cyber liability insurance coverage and recovery planning.
Audited financial statements typically come with a surprise bonus that business owners might not be aware of: the management letter. This article describes what is required to be reported in the management letter, how a company can use it and the types of comments a CPA may voluntarily opt to report to demonstrate his or her commitment to the client’s success.
Claim denials are a huge financial drain on physician practices. If nothing is done to reverse a denial, the revenue that it represents is lost to the practice. Attempts to manage and resolve the denial can cost an average of $25 to $30 per claim, according to the Medical Group Management Association (MGMA). In this blog, we take a look at some best practices you can employ to help manage claims denied by payers.
This article looks at several ways to measure investment portfolio performance. The traditional method is to compare results with those of a relevant market index. However, some investors may be better off considering risk-adjusted results or even follow a goals-based approach.
Law firms that invest in creating memorable brands enjoy many benefits, including increased awareness in the marketplace and among their peers. This increased awareness often results in business development opportunities, enhanced recruiting visibility and stronger client relationships. This article explains how a law firm can use its brand to differentiate itself from its competitors and discusses ways to avoid failing to integrate a firm’s brand across the organization.