New Business and Personal Tax Credit for Plug-In Electric Vehicles
Beginning next year, a new tax credit for plug-in electric vehicles applies to qualifying new cars that are purchased by individuals and businesses. Used and leased vehicles do not qualify. Vehicles must be placed in service in tax years beginning after 2008, and they must be purchased by no later than
December 31, 2013
.
The minimum credit is $2,500 for a vehicle powered by a traction battery with capacity of at least 4 kilowatt hours. An additional credit of $417 is allowed for each additional kilowatt hour of traction battery capacity until the applicable credit cap is reached. The cap is $7,500 for lighter vehicles. For heavy vehicles with gross vehicle weight ratings in excess of 10,000 pounds, the cap is $10,000, $12,500, or $15,000 depending on the GVWR.
For vehicles produced by a particular manufacturer, the credit will be phased out over four quarters after that company has sold 250,000 qualifying vehicles in the U.S.
Automakers are racing to bring electric cars to market but it may be awhile before they are readily available. For example, the Chevrolet Volt is expected to launch toward the end of 2010. Still, the tax benefits might be worth waiting for. Once it's available, a Volt buyer is expected to receive a $7,500 tax credit.
Deduction for Making Commercial Buildings Energy-Efficient Is Extended
The new law extends the provision allowing deductions, instead of capitalization, for the cost of qualified energy-saving improvements to commercial buildings in the
U.S.
for five more years, to cover property placed in service through 2013. The maximum deduction under this provision is generally limited to $1.80 per square foot. In some circumstances, a reduced deduction of up to $.60 per square foot is allowed.
The Contractor Tax Credit for Building Energy-Efficient Homes Is Extended.
The new law extends the $2,000 per-home contractor tax credit for building new energy-efficient homes in the U.S., including manufactured homes, for one more year, through 2009. The credit can also be claimed for substantially reconstructing and rehabilitating an existing home and making it more energy-efficient.
IRS
Allows Architects to Take Tax Deduction for Green Public Buildings
The
IRS
has issued guidance that can enable architects and other designers to claim substantial tax deductions for certain energy-efficient features in government owned buildings. The law allows the designer of the energy-saving portions of a government-owned building (such as the building envelope, HVAC system or lighting) to receive the tax deduction since government agencies have no tax liability and therefore cannot take advantage of the deduction. Alternatively, a public agency could assign the credit to the building designer, negotiate a fee reduction and realize the credit that way.
How to Fight Fraud in your Business - by Nancy Ridenour
According to the Association of Certified Fraud Examiners,
U.S.
organizations lose five percent of their annual revenues to fraud - roughly $652 billion a year. The median loss is $159,000, but one-fourth of the cases result in losses of at least $1 million.
Nancy Ridenour, one of PDR’s partners, is a Certified Fraud Examiner. A Certified Fraud Examiner has the background to help prevent, detect and investigate fraud. "I've performed fraud investigations on inventory misappropriation, financial statement fraud, payroll theft and executive fraud," said
Nancy
.
Forensic accounting is becoming a significant area for clients because white collar crime has become so common. According to
Nancy
, the potential for fraud or misuse of funds has increased over the years with the sophistication of people who are committing fraud as well as the increased reliance on computer systems.
It is important to have trusted employees, but if you put too much financial authority in the hands of just a few employees, you are asking for trouble.
People used to write checks to themselves or walk off with inventory when they were stealing from their employer. Now fraud has reached a whole new level with the ability to move money around electronically. People are very creative when they are under financial stress and need money.
Fraud can be difficult to detect. The median length of schemes in an association study was 18 months from when they began until they were detected.
Small businesses suffer disproportionately from fraud. The median loss suffered by an organization with fewer than 100 people was $190,000, according to the most recent figures from the Association. One of the reasons small businesses suffer such high losses is they don’t understand how to proactively prevent fraud.
What are some common approaches to reducing fraud? Emphasize separation of duties and internal controls. Cross-train a number of workers in handling finances, and never have the same person write the checks, make the deposits and reconcile the bank account.
The company owner should always receive statements directly from the bank, looking over the records and canceled checks for any signs of suspicious or unauthorized activity.
Have a Certified Public Accountant perform a fraud prevention checkup and review internal controls.
Ensure that computer systems are secure and that access is restricted.
Develop a company code of ethics to remind employees that theft and fraud are not acceptable.
For more information, contact Nancy Ridenour at nridenour@pdr-cpa.com
Give Your Business an IT Checkup
You don't need to be a technology whiz to be successful in business-but you should have a plan in place for making the most of your company's data. Now is an excellent time to carefully examine your company's technology to determine what is working well and what improvements need to be made. Start by asking the following questions:
Is it Time to Update Our Computer Equipment?
Technology changes rapidly, so although your company's systems may appear to be working well, you may be missing out on new ways to protect your business information, help your business run more efficiently and better serve your customers.
For example, to run some of today's most powerful programs, you need a fast and large hard drive with significant memory capacity. You might consider adding newer technology, such as wireless capabilities to older equipment, but often the cost of upgrading a computer is more than the
cost of a new model.
Do I have an Effective System to Protect My Equipment from Power Surges
Loss of electrical power and power surges weaken computer components and are the most common cause of data loss. If your business depends on computers, protecting your power source is critical. This is especially important if you area is prone to power fluctuations or electrical storms.
An Uninterrupted Power Supply (UPS) unit offers both superior surge protection and, depending on the model, anywhere from 15 to 45 minutes of backup power-enough time to save and copy critical files. This idea of a UPS isn't to continue your business dealings while the lights are out, but to ensure that your data is available when the lights come back on.
Have I Installed the Latest Version of My Computer's Operating System and Software?
You should keep your operating system and software applications current by regularly downloading and installing all updates. Updates improve performance, fix bugs and may add new features. You should also regularly update and run anti-virus software.
Generally, when registering your software, you will be enrolled in or be informed about the vendor's upgrade strategies, which often include automatic online checks for updates.
How Strong is My Backup System?
You need to consider your storage needs in terms of both capacity and physical location. Depending on the amount of data you have, you can back up your hard drive to USB flash drives, CDs, DVDs, tapes or an
external drive. You might also want to consider off-premise backup. There are many companies on the web that will store your backup for a monthly fee.
How Well is My Company's Data Integrated?
Over the years, small businesses tend to produce multiple silos of data. Your inventory, sales data and marketing information need to be linked together to better serve your customers and increase your company's productivity and profitability. Without this integration, you may not know who your best customers are or, worse yet, you could end up agreeing to provide a top customer with an item you don't have in your inventory.
The best way to optimize the systems you have in place and to ensure that they are secure is to meet with an advisor who specializes in information technology.
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