Journal of Accountancy articles from August 2005

Journal of Accountancy archives from August 2005

The best of both worlds: a combination of cost segregation and like-kind exchanges can save on real estate taxes.
August 1, 2005... EXECUTIVE SUMMARY * COMBINING COST SEGREGATION AND SECTION 1031 exchange allows taxpayers to defer the maximum amount of income taxes. * USING COST SEGREGATION, OWNERS CAN RECLASSIFY real property as personal property in order to...

Withdraw without penalty: do your clients rate an exemption from the penalty for early withdrawal of retirement funds?
August 1, 2005... EXECUTIVE SUMMARY * WHEN CLIENTS ARE DESPERATE FOR FUNDS because of unforeseen circumstances, CPAs can help them tap retirement funds without triggering the 10% early withdrawal penalty. Eight exemptions to this penalty relate to life...

Recoverable costs.(litigation costs)
August 1, 2005... A taxpayer who is the prevailing party in a legal dispute with the IRS may be entitled to recover some of his or her litigation-related costs. There have been numerous suits outlining the costs taxpayers can recover if they hire an attorney....

Tax benefits of royalty trusts: another way of investing in commodities.(from The Tax Adviser)
August 1, 2005... Royalty trusts provide income-oriented taxpayers with opportunities to invest in natural resources, realize cash flows and participate in the tax benefits afforded this specialized industry. To educate interested clients, CPAs should...

Answer please: fraud-based interviewing; ask probing questions and assess the response.
August 1, 2005... EXECUTIVE SUMMARY * ONE WEAPON AUDITORS CAN USE AGAINST FRAUD is simply to speak to clients, managers and employees while observing their behaviors. Normal interview skills may be insufficient to determine whether an individual is...

Stay out of trouble: observe fundamentals; know the standards; select clients carefully; communicate often.
August 1, 2005... EXECUTIVE SUMMARY * DEBATE HAS RAGED FOR YEARS in financial and accounting circles over issues of independence, auditing and accounting standards, and corporate governance. In the event of an auditing malfeasance trial, a juror--unaware of...

New horizons: enterprise-wide compliance: a better way to manage regulatory demands.
August 1, 2005... EXECUTIVE SUMMARY * COMPLYING WITH SARBANES-OXLEY HAS LED many companies to search for a better way to manage all the regulatory demands they face. Some are doing so on an enterprise-wide basis by coordinating and integrating compliance...

Emergency for Rx Windows XP: what to do when your computer needs repair.
August 1, 2005... Microsoft's Windows XP operating system contains an assortment of emergency tools that can come to your rescue if your computer doesn't run right--or won't run at all. Rest assured, you don't have to be technically proficient to use them, but...