Vacation Homes: Are You Enjoying the Tax Benefits?

Vacation homes offer owners many tax breaks similar to those for primary residences, as well as the opportunity to earn tax-advantaged and even tax-free income from a certain level of rental income. The value of vacation homes are also on the rise again, offering an investment side to ownership that can ultimately be realized at a beneficial long-term capital gains rate.

Homeowners can deduct mortgage interest they pay on up to $1 million of “acquisition indebtedness” incurred to buy their primary residence and one additional residence. If your total mortgage indebtedness exceeds $1 million, you can still deduct the interest you pay on your first $1 million. If one mortgage carries a substantially higher rate than the second, it makes sense to deduct the higher interest first to maximize deductions.

As a vacation homeowner, you don’t need to buy an actual house (or even a condominium) to take advantage of second-home mortgage interest deductions. You can deduct interest paid on a loan secured by a timeshare, yacht or motor home so long as it includes sleeping, cooking and toilet facilities.

Below are two ways to account for your vacation home:

1. Capital gain on vacation properties.

Gains from selling a vacation home are generally taxed as long-term capital gains on Schedule D. As with a primary residence, basis includes the property’s contract price (including any mortgage assumed or taken “subject to”), nondeductible closing costs (title insurance and fees, surveys and recording fees, transfer taxes, etc.), and improvements. “Adjusted proceeds” include the property’s sale price, minus expenses of sale (real estate commissions, title fees, etc.). The maximum tax on capital gain is now 20 percent, with an additional 3.8 percent net investment tax depending upon income level. There’s no separate exclusion that applies when selling a vacation home as there is up to $500,000 for a primary residence.

2. Vacation home rentals.

Many vacation home owners rent those homes to draw income and help finance the cost of owning the home. These rentals are taxed under one of three sets of rules depending on how long the homeowner rents the property.

• Income from rentals totaling not more than 14 days per year is nontaxable.
• Income from rentals totaling more than 14 days per year is taxable and is generally reported on Schedule E of Form 1040. Homeowners who rent their properties for more than 14 days can deduct a portion of their mortgage interest, property taxes, maintenance, utilities, and other expenses to offset that income. That deduction depends on how many days they use the residence personally versus how many days they rent it.
• Owners who use their home personally for fewer than 14 days and less than 10 percent of the total rental days can treat the property as true “rental” property, which entitles them to a greater number of deductions.

Own a vacation home, or thinking about buying one? Contact our tax advisors in Michigan, Houston or Ft. Lauderdale to ensure you enjoy the associated tax benefits.

Tax Reform Proposal: What Lies Ahead

President Obama recently said that he wants a tax reform/deficit reduction package by August, and lawmakers now have many proposals to consider, including House and Senate blueprints as well as the Simpson-Bowles Plan. Whatever is adopted, it is sure to impact your tax strategy and planning.

All of the proposals have one common goal: reduce the federal government’s approximate $16 trillion federal budget deficit. Many of the plans propose to cut spending and raise revenues. Let’s take a look at how some of the tax proposals would affect individuals, businesses and others.

Individuals

• New individual tax rates have been set at 10, 15, 25, 28, 33, 35 and 39.6 percent for 2013 and beyond.
• The House GOP budget blueprint would consolidate the current seven individual income tax rate brackets into two rates. The lower rate would be 10 percent with the goal of a top rate of 25 percent.
• A proposed minimum 30 percent tax on individuals with incomes exceeding $1 million (full phase in at $2 million). These taxpayers would also be limited to reduce their tax liability to a maximum of 28 percent.
• Potential to limit contributions and accruals on tax-favored retirement accounts, including IRAs, qualified plans, tax-sheltered annuities and deferred compensation plans.
• Across-the-board limits on itemized deductions claimed by the top 2 percent of income earners, by capping the rate at which itemized deductions and other tax preferences reduce tax liability, a percentage of income cap or a specific dollar cap.
• Repeal of the 3.8 percent net investment income surtax and the 0.9 percent, alternative minimum tax and additional Medicare tax.
• Increase in federal estate tax by raising the estate tax at a maximum rate of 45 percent with a $3.5 million exclusion (not indexed for inflation) after 2017.

Businesses

President Obama says he supports lowering the corporate tax rate in exchange for businesses giving up unspecified tax preferences. These could include tax incentives for fossil fuels, the Code Sec. 199 deduction and more. The House blueprint would reduce the top corporate tax rate to 25 percent, paid for by tax savings elsewhere. The Simpson-Bowles plan also calls for a reduction in the corporate tax rate, contingent on businesses relinquishing unspecific tax preferences.

President Obama and the House and Senate budgets also propose a number of incentives to encourage business spending and job creation, including:

• Enhanced small business expensing (Obama and House at different amounts)
• Permanent research tax credit (Obama, House and Senate)
• Temporary tax credit for increasing payrolls (Obama)
• Special incentives for manufacturing in the United States (Obama)

Another key difference among the competing proposals: the House budget plan would repeal the Patient Protection and Affordable Care Act, including all of its business tax-related provisions, such as employer-shared responsibility provisions, the medical device excise tax, and more. The Senate approved a non-binding resolution to repeal the medical device tax but is not expected to go along with repeal of the entire Affordable Care Act.

Internet Sales Tax

In May, the Senate is expected to approve the Marketplace Fairness Act (H.R. 743). The bill gives states the authority to compel online merchants, no matter where they are located, to collect sales tax at the time of a transaction. However, states would be able to compel collection of sales tax only after they have simplified their sales tax laws, such as by adopting the Streamlined Sales and Use Tax Agreement. The bill has the support of President Obama. However, the bill may not pass in the House, where many lawmakers view it as a tax increase.

Looking Ahead

Tax reform coupled with deficit reduction is starting to gain momentum. Whether this will lead to legislation this summer or before year-end is unclear. As long as the key players continue their discussions, there is the chance of tax reform.

Doeren Mayhew will keep you posted of developments.

How to Use Your 2012 Tax Return for Future Planning

Did you owe tax on your 2012 tax return? Did you receive a sizeable refund? Or, conversely, did you receive a smaller refund than you expected? Taking another look at your tax return from this past year and making a few changes could put more money in your pocket in the short term. And by examining your investments as they are reported on your tax return, you may be able to strategize for the long-term. Start by looking at six key elements:

1. Federal Withholding

If you received a large tax refund, it might be time to adjust the amount of tax the federal government withholds from your paycheck. Although next year your refund check may not be as large, you will have the advantage of seeing a larger sum deposited directly into your pocket every month. To adjust your withholding, fill out and sign a Form W-4, and submit it to your employer. Do this in cases where your adjustments to income, exemptions and deductions remain relatively steady from year-to-year, and where the government consistently is required to give you a large refund.

2. State Withholding

Some people are entirely exempt from state tax, but it is withheld from their paychecks nevertheless. At the end of each year, they may include the amount of their state taxes in their itemized deductions, but then receive a refund they have to declare as income in the next year. This problem particularly applies to active duty military families, many of whom are posted in states other than their state of residency. Military families can check with their state income tax authority to see if there is an appropriate form that can be completed and filed to exempt them from withholding. A higher adjusted gross income (AGI), even if it is subsequently reduced by itemized deductions, can erode other adjustments to income, such as a deduction for student loans, IRA contributions, higher education expenses and more because of certain AGI caps on these benefits.

3. Tax Rates and Adjusted Gross Income

As you may have heard, Congress allowed the Bush-era tax cuts to expire for higher-income earners. That means joint filers with more than $450,000 of adjusted gross income ($400,000 for single individuals) are now in the 39.6 percent tax bracket. Taxpayers at this level of income or above are also subject to a higher long-term capital gains tax rate: 20 percent, up from 15 percent paid by other taxpayers.

In addition, for tax years beginning in 2013, the 33 percent tax bracket for individual taxpayers ends at $398,350 for married individuals filing joint returns, heads of households and single individuals. If you were hovering near the bottom of the 35 percent bracket for the 2012 tax year, then you might want to see if you can readjust your income so that you fall within the 33 percent category.

Higher-income taxpayers also have two new taxes to worry about for 2013 and beyond. Joint-filing taxpayers with modified adjusted gross income of $250,000 ($200,000 for single filers) are also subject to the 3.8 percent surtax on net investment income and a .9 percent additional Medicare tax. Does your adjusted gross income for last year approach these figures? Is it on the edge of the income brackets? Will stock market increases this year put you over the top of those income thresholds? If so, it may be time to find ways to reduce your income for 2013.

4. Investments

At some point in your efforts over the years to accumulate a savings nest egg, you will need to consider diversification, the process of putting your money in the right kind of investment vehicles to satisfy your personal risk strategy and achieve your goals. Looking at your tax return will help you decide whether the investments you now have are the right ones for you. For example, if you are in a high tax bracket and need to diversify away from common stocks, investing in tax-exempt bonds might help, especially if you have state income taxes to worry about, too.

5. Medical Costs

Should you be taking advantage of the medical expense deduction? Many people assume that with the 10 percent adjusted gross income floor on medical expenses now imposed for tax years starting in 2013 (7.5 percent for seniors) that it doesn’t pay for them to keep track of expenses to test whether they are entitled to itemize. But with the premiums for certain long-term care insurance contracts now counted as a medical expense, some individuals are discovering that along with other health insurance premiums, deductibles and timing of elective treatments, the medical tax deduction may be theirs for the taking.

6. Retirement Planning

Don’t forget to protect for eventualities. Are you maximizing the amount that Uncle Sam allows you to save tax-free for retirement? A look at your W-2 for the year, and at the retirement contribution deductions allowed in determining adjusted gross income, should tell you a lot. Should your spouse set up his or her own retirement fund, too? Are you over-invested in tax-deferred retirement plans? If so, you may lose a significant amount of your nest egg to tax after retirement.

Look to our dedicated Tax Group to help you plan properly for maximizing future tax savings. For more information, contact our Doeren Mayhew.

Is Your Institution Prepared for New Escrow Requirements for Higher-Priced Mortgages?

Beginning June 1, 2013, financial institutions originating higher-priced mortgage loans (HPMLs) on residential structures will have to extend escrow account durations for consumers under a final rule issued by the Consumer Financial Protection Bureau (CFPB).

Driven by the CFPB’s mission to strengthen consumer protection, the new rules are designed to help:

• Prevent consumers from purchasing homes they can’t afford due to taxes and insurance not being taken into account at the time of purchase
• Avoid unexpected cost shock for consumers by spreading tax and insurance costs over a year instead of a burdensome lump sum
• Minimizing foreclosure rates for first-lien, higher-priced mortgages

What Are the New Rule Changes?

The final rule, resulting from amendments to the Truth in Lending Act (Regulation Z) established by the Dodd-Frank Act, lengthens the time frame for which an escrow account should be maintained for HPMLs. It will now be extended to a minimum of five years, up from the current requirement of one year. Consumers will have the opportunity to remove the escrow after this five-year time allotment if they have not been delinquent in payments and the loan value is less than 80 percent of the original property value.

Be aware that having additional years of the escrow account will impact the costs associated to extending maintenance.

Although the new rule will apply to many, not every creditor and transaction will be impacted by the escrow account modifications. The rule defines and expands upon several exemptions, including:

Transaction Exemptions – The following transactions are exempt from obliging to the statute’s escrow requirements:

• Loans on cooperative properties
• Construction loans that do not include permanent financing
• Temporary or bridge loans with terms less than 12 months
• Reverse mortgages
• Subordinate liens
• Open-end credit (home equity lines of credit)
• Insurance premiums purchased by the consumer, but not required by the creditor

Creditor Exemptions – Creditors who operate in predominantly rural or underserved areas are exempt if they:

• Made more than 50 percent of first-lien covered transactions in rural or underserved counties
• Combined with affiliates, completed less than 500 first-lien loans in the preceding calendar year
• Have total assets fewer than $2 billion, adjusted annually for inflation
• Generally do not escrow for mortgage obligations they or their affiliates currently service
• Hold the consumer’s loan in their portfolio

Existing Exemption Expansion – Expanding on existing exemptions related to escrowing insurance premiums for condominium units, the new rule includes an exemption for instances where an individual’s policy is covered by a master insurance policy.

How to Prepare for the Changes

With any regulatory change come adjustments. To avoid penalties and potential punitive damage claims by consumers related to ineffectively implementing the regulation, be proactive in accommodating the change at your financial institution by:

• Developing and implementing systematic changes and business practices to ensure escrow accounts for HPMLs are not waived in the first five years
• Training impacted departments and staff on the new requirements and related new procedures
• Evaluating the need to outsource escrowing to a third-party servicing firm to help minimize internal resources’ time and related cost

Even if your institution is exempt from this rule, but still escrows for higher-priced mortgages today, you may need to rethink your current escrow program to accommodate applications received on or after June 1, 2013, to remain exempt.

To learn more about what you can do to prepare for the regulatory change, contact Doeren Mayhew.

Portability Effects on Your Estate Planning Strategy

Exemption portability, made permanent by the American Taxpayer Relief Act of 2012 , provides significant estate planning flexibility to married couples if sufficient planning hasn’t been done before the first spouse’s death. How does it work? If one spouse dies and part (or all) of his or her estate tax exemption is unused at death, the estate can elect to permit the surviving spouse to use the deceased spouse’s remaining estate tax exemption.

But making lifetime asset transfers and setting up trusts can provide benefits that exemption portability doesn’t offer. For example, portability doesn’t protect future growth on assets from estate tax like applying the exemption to a credit shelter trust does. Also, the portability provision doesn’t apply to the GST tax exemption, and some states don’t recognize exemption portability.

Have questions about the best estate planning strategies for your situation? Contact Doeren Mayhew.

12 Common Tax Scams to Consider in 2013

The Internal Revenue Service (IRS) issued its annual “Dirty Dozen” list of tax scams, reminding taxpayers to use caution and protect themselves against these schemes. This year’s 12 common tax scams include:

1. Identity Theft

Identify theft occurs when personal information such as your name, Social Security number or other identifying information is used without your permission. In many cases, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund.

2. Phishing

Phishing scams are typically carried out through unsolicited emails or fake websites that prompt taxpayers to provide valuable personal and financial information. The IRS will never request personal or financial information via email, text message, social media or any other form of electronic communication.

3. Return Preparer Fraud

To avoid refund fraud or identity theft, taxpayers are encouraged to use preparers who sign the returns they prepare and enter their IRS Preparer Tax Identification Numbers.

4. Hiding Income Offshore

Several taxpayers evade U.S. taxes by:

• Hiding income in offshore banks, brokerage accounts or nominee entities, using debit cards, credit cards or wire transfers to access the funds.
• Employing foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

Be sure to comply with reporting and disclosure requirements to avoid penalties and fines.

5. “Free Money” from the IRS and Tax Scams Involving Social Security

Low-income individuals, the elderly and members of church congregations are often targeted by scammers, promising them refunds by filing a tax return with little or no documentation. Another tax scam involves Social Security, where scammers promise taxpayers non-existent refunds or rebates.

6. Impersonation of Charitable Organizations

Following major disasters, scam artists impersonate charities to get money or private information from taxpayers by using a variety of tactics, including:

• Contacting people by telephone or email to solicit money or financial information for bogus charities.
• Contacting disaster victims and claiming they are helping victims file casualty loss claims and obtain tax refunds.
• Attempting to get personal financial information to steal the victims’ identities or financial resources.
• Creating bogus websites to solicit funds for disaster victims.

7. False/Inflated Income and Expenses

Claiming unearned income or unpaid expenses to secure larger refundable credits could result in repaying the erroneous refunds, including interest and penalties. Additionally, some taxpayers are filing excessive claims for the fuel tax credit, which is considered a frivolous tax claim and can result in a $5,000 penalty.

8. False Form 1099 Refund Claims

To justify a false refund claim on a corresponding tax return, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount. Unqualified taxpayers who claim deductions or credits could be liable for financial penalties or face criminal prosecution.

9. Frivolous Arguments

Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying owed taxes. Check out this list of frivolous tax arguments that taxpayers should avoid.

10. Falsely Claiming Zero Wages

A Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. Filing this type of return may result in a $5,000 penalty.

11. Disguised Corporate Ownership

Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business. These entities can be used to underreport income, claim fictitious deductions, avoid filing tax returns, participate in listed transactions, and facilitate money laundering and financial crimes.

12. Misuse of Trusts

While there are legitimate uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily to avoid income tax liability and hide assets from creditors.

Doeren Mayhew

Tax Day Has Passed – Now What?

With the 2012 tax filing season behind us, it’s time to start thinking seriously about 2013 tax planning — especially if you’re a higher-income taxpayer, because you might be subject to one or more significant tax increases this year:

• Taxpayers with FICA wages and self-employment income exceeding $200,000 for singles and $250,000 for joint filers face an additional 0.9 percent Medicare tax on the excess.
• Taxpayers with modified adjusted gross income exceeding $200,000 for singles and $250,000 for joint filers may face a new 3.8 percent Medicare tax on some or all of their net investment income.

Taxpayers with taxable income in excess of $400,000 for singles and $450,000 for joint filers face the return of the 39.6 percent marginal income tax rate — and of the 20 percent long-term capital gains rate on long-term capital gains and qualified dividends.

To explore whether you’re likely to be hit with these tax hikes and what strategies you can implement to minimize the impact, contact Doeren Mayhew’s Tax Group, with CPAs in Michigan, Houston and Ft. Lauderdale.

Worker Classification: Why it Matters, How IRS Is Addressing

Over the years, the Internal Revenue Service (IRS) has cracked down on employers during audits for misclassifying workers as contractors to avoid paying payroll tax. To boost tax revenues, the IRS has set its sights on more than 6,000 employers to investigate.

With the introduction of the Voluntary Worker Classification Settlement Program (VCSP) in 2011 came relief for some taxpayers dealing with misclassified workers, but not all. However, recently the IRS announced the expansion of VCSP to more businesses, tax-exempt organizations and government entities.

Under the revamped program, employers under IRS audit (with the exclusion of an employment tax audit) can qualify for the VCSP, and eligible employers are permitted to reclassify independent contractors as employees with less burden. A general rule-of-thumb is that employers will pay an amount effectively equaling just over 1 percent of the wages paid to the reclassified workers for only the prior year.

To avoid the threat of payroll audit, you can apply to be entered into the VCSP program if:

• You are currently treating workers as nonemployees
• You have consistently treated the workers in the past as nonemployees and filed the proper Form 1099s
• You are not currently under audit on payroll tax issues by the IRS or under audit by Department of Labor or a state agency concerning the classification of these workers.

Why Classification Is Important

The distinction is important for employment tax reasons. With an employee, the business and the employee share the responsibility for Social Security and Medicare (FICA) taxes on the employee’s earnings. The business also must pay unemployment taxes for the worker. With an independent contractor, the contractor is fully liable for his or her own self-employment taxes. FICA taxes do not apply, and unemployment taxes are not required.

Benefits are another consideration. A company’s health and retirement plans must cover an employee once the employee meets plan eligibility requirements. An independent contractor typically does not receive benefits.

How to Decide

To answer the worker classification question for federal tax purposes, a company should analyze its entire relationship with the worker, focusing on the degree of direction and control the company exercises. The more control, the more likely it is that a worker is an employee. Three elements come into play:

1. Behavioral control over what work is done and how it is done (sequence of work tasks, detailed instructions regarding how to perform the job, etc.)
2. Financial control over the business aspects of the job (who provides tools/supplies, how the worker is paid, whether expenses are reimbursed, etc.)
3. Type of relationship (whether it is ongoing, written contracts, provision of benefits, etc.)

Businesses that would like the IRS to determine a worker’s status for purposes of federal employment taxes and income-tax withholding can file Form SS-8. The IRS advises that it could take as long as six months to get a determination.

Statute Says

Federal law specifically classifies certain workers as employees for FICA purposes, even if they are not subject to an employer’s control. These include certain agent and commission drivers, a life insurance company’s sales agents, home workers, and full-time traveling or city salespeople. Similarly, two categories of workers are considered statutory nonemployees (i.e., self-employed): direct sellers and licensed real estate agents (requirements apply).

A Little Relief

In some situations, the IRS may relieve a business from having to pay employment taxes for an incorrectly classified worker. The business must have a reasonable basis for not treating the worker as an employee and must have been consistent in its treatment.

To find out more about whether you are classifying workers correctly and how to take advantage of the VCSP, contact Doeren Mayhew.

IRS Extends Work Opportunity Tax Credit

The American Taxpayer Relief Act of 2012 has been amended to extend the Work Opportunity Tax Credit(WOTC) through Dec. 31, 2013, for taxable employers and qualified tax-exempt organizations. Businesses can still take advantage of the WOTC savings, ranging from $2,400 and up to $9,600, for previous new hires.

The IRS has provided additional guidance and transitional relief for employers claiming the WOTC. Employers that hire members of targeted groups are provided additional time beyond the 28-day deadline for submitting the pre-screening and certification forms to designated local agencies (DLAs).

Employers that hire a member of a targeted group from Jan. 1, 2012 through March 31, 2013, other than a qualified veteran, will be considered to have satisfied the requirements if a completed Form 8850 to request certification is submitted to the DLA by April 29, 2013.

Target groups that could still qualify for the WOTC savings for previous new hires include:

• Ex-felons
• Recipients of assistance under Aid to Families with Dependent Children (AFDC) or its successor program, Temporary Assistance for Needy Families (TANF)
• Recipients of SNAP (food stamps)
• Recipients of Supplemental Security Income (SSI)
• Vocational rehabilitation referrals
• Designated community residents living in a Rural Renewal County
• Summer youth employees

As for the veteran target groups, employers that hire qualified veterans from Jan. 1, 2013, through March 31, 2013, have until April 29, 2013, to submit a completed Form 8850 to the DLA to request certification.

To take advantage of this tax credit opportunity, contact Doeren Mayhew’s dedicated Tax Incentives Group with CPAs in Troy, Houston and Ft. Lauderdale.

The Changing Workers’ Compensation Experience Modification

The way workers’ compensation experience modifiers are calculated is changing in the state of Texas, which could have either a positive or negative impact on your business, depending on your current situation. If your compensation experience modification is scrutinized before you can work or bid on jobs, you will want to take special heed. Charles Comiskey of risk management firm Brady Chapman Holland & Associates explains the changes and what they mean for your business below.

Background

A workers’ compensation experience modifier is a comparison of a company’s actual incurred loss experience as compared to actuarially anticipated loss experience for a company of that same size and operations. Perfectly average loss experience results in a modifier of 1.00. A debit modifier (one in excess of 1.00) is indicative of adverse experience, and a credit modifier (one below 1.00) indicates favorable experience. The loss experience used to perform this calculation is based upon the three oldest of a company’s past four workers’ compensation policy periods.

Each loss is divided into primary and excess portions. Currently, the first $5,000 of every loss is considered to be a “primary” loss, and all amounts greater than $5,000 are deemed to be “excess” loss. Primary losses are fully weighted in the modification calculation, but the amounts of loss excess of that $5,000 limit receive a lesser weighting. This means that frequency of primary losses can have a more dramatic effect on increasing a modifier than large losses do.

Upcoming Changes

Why should you care how this calculation is done? Because it’s changing for the first time in almost 20 years, as the formulas have not kept up with rising costs of medical care. In most states (but not in Texas) the change was effective Jan. 1, 2013. If you have operations in multiple states, your modification is likely already affected.

With this change, the level of fully weighted primary losses will increase from $5,000 to $10,000 when approved by each state, and it is projected to increase to $13,500 the following year and to around $17,000 the year thereafter.

Impact on Your Business

What does this mean to you? If your current modification is a debit, expect that penalty to increase. On the other hand, if your modifier is a credit, it will likely improve. If your workers’ compensation experience modification is scrutinized by others before you are permitted to work or even bid on certain jobs, take heed – this change could endanger your livelihood.

Timing

When will this happen in Texas? That’s a great question that deserves an evasive answer. This has not been announced by the Texas Department of Insurance and until it is, we don’t know. But the expectation is that it will be done, and not in the distant future.

Improving Your Modifier

Keep in mind that a modifier of 1.00 is not a goal to which your business should aspire. It’s average. It’s a “C” grade. Safety, quality and productivity go hand-in-hand, and good loss experience can be achieved. Every company whose workers’ compensation is subject to experience modification has a minimum possible modifier. Those that reach that level get an “A+”. The questions that should be asked are:

1. What is our minimum possible modifier?
2. What’s keeping us from getting there?

It can be done.

For more information, contact Charles Comiskey or Doeren Mayhew’s dedicated Construction Group, with CPAs in Troy, Mich., and Houston, Texas.

Charles E. Comiskey, CPCU, CIC, CPIA, CRM, PWCA, CRIS, CCM, is Sr. V.P. of Brady Chapman Holland & Associates. Comiskey is a nationally recognized expert and frequent speaker on risk management and insurance issues to various legal, construction and real estate associations and similar groups across the country. He has served as a pre-trial consultant/expert witness in approximately 200 matters in State and Federal courts, serving in behalf of both the defense and plaintiff. He can be contacted at 713.979.9706 or charles.comiskey@bch-insurance.com.