Articles and Letters

Plan Ahead for Year-End Tax Planning

Year-end tax planning is just around the corner, and here are tips to help you get ahead! If you have questions please give us a call right away.

For Individuals:
  • Realize losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, then buy back the same securities at least 31 days later. It may be advisable for us to meet to discuss year-end trades you should consider making.
For Businesses:
  • Businesses should buy machinery and equipment before year-end and, under the generally applicable "half-year convention," secure a half-year's worth of depreciation deductions in 2015.
  • Unless retroactively changed by legislation, property expensing is greatly reduced in 2015; making qualifying expenditures can still reap thousands of dollars in current deductions that you wouldn't otherwise receive. Beginning in 2015, the expensing limit is $25,000, and the investment-based reduction for the dollar limitation starts to take effect when property placed in service in the tax year exceeds $200,000.

Top 5 Keys to Succession Planning

As Harvest Comes to a Close, Now is the Time to Focus on the Big Picture: Succession Planning
Jeff Bowman, Ag Team Leader
At some point, all family farming operations face the same challenge: "What do we do if something happens to Dad? Who gets what?"
Succession planning is never a favorite topic. It can be rife with emotion and conflict, but it also is a challenge and a reality that all family businesses need to prepare for. 
Is this the year that your family is going to tackle succession? For ag families, the alternative to proper succession planning oftentimes is grim and involves losing most or all of the family farm. Sadly, this is a fact. As families grow, so does the potential for conflict.
Let us help.
Jeff Bowman, Ag Team Leader, says the first step he takes when working with a family on its succession planning is to learn what the long-term goals are for the farm and the next generation. "It's an open conversation where I can learn their thoughts and big-picture goals," he says.
Here are five starter tips to help get the ball rolling*
  1. Don't avoid "The Talk" because it is a touchy or fight-triggering subject.  
  2. Obstacles like greed, family disharmony, control freaks, self-interest, and lack of contribution are tricky topics to air. Speak candidly and nip them in the bud with new solutions. 
  3. Write down both small and major goals that every person can agree on.  
  4. Schedule regular meetings with the entire family during the year and be sure that notes or recordings are taken at every meeting.  
  5. Commit and execute the plan!
Back in October of last year, we invited agriculture succession planning expert Kevin Spafford to join us for a luncheon presentation. He shared the helpful tips he has gleaned after working with hundreds of ag families. Click here to learn more.
Grimbleby Coleman is a trusted ally when it comes to assisting ag families with succession planning. We want each family member to accomplish his or her individual long-term financial goals. There's no time quite like the present when it comes to the matter of succession planning - make plans with your family today. We can help you navigate the conversation.
*These reminders are thanks to Kevin Spafford, Legacy-By-Design.


End of the Year Business Planning: 1031 Tax Exchange to Accommodate Major Growth or Contraction

September 23, 2015 
Adriane Reams, Manager, CPA and Construction Team Member
It might not be the end of the year, but it is time to take a look at your overall tax picture. "This is a good time of year to reviewyour business' long-term financial plans for items such as real estate and vehicles," says Adriane Reams, Manager, CPA and Construction Team Member.
Depending on your tax situation and long-term goals, you might find that a Section 1031 Exchange is a good option to limit your taxable gains during the year. Also known as a like-kind exchange, a 1031 facilitates the swap of one business or investment asset for another - with one big feature: No tax or limited tax will be due in the year of theexchange. In other words, you can change the form of your investment without cashing out or recognizing a capital gain, allowing your investment to continue to grow, tax deferred (remember this is a tool to defer or manage tax, not eliminate it).
An exchange can help you leverage your sale proceeds toward more valuable real estate, increase cash flow, diversify into other properties, reduce m
anagement, or consolidate holdings.  
Common Construction Reasons for a 1031 Tax Exchange?
Real Estate
Many of our construction clients who own their office buildings see their needs change (grow or contract) based on economic fluctuations. A 1031 exchange allows an owner to focus on the business need vs. the tax implication of selling their building.  
Vehicles (i.e. cars and trucks) are considered business property, and maintenance expenses can add up for businesses with a big fleet of vehicles, especially as they age. Replacement of these older vehicles can reduce the repair expenses.  Vehicle trade-ins are the most common 1031 transaction we see.
Does Entity Type Matter? 
Entity type is a strong consideration because in an S Corp or Partnership-type entity (LLC, LP, GP, etc.) the income (including gains) pass through to the owners. If you don't use a 1031 in those situations, then the gain or loss would be passed through to the owners and they would pay the capital gains tax during the year.   
You'll need to have a good plan in place if you're interested in executing a1031 exchange because your replacement property will need to be identified in writing within 45 days of selling the relinquished property. The title company will help you identify an intermediary and they do some of the testing that you've qualified and ensure you've identified the right property as well. Start to finish, the deal needs to be completed within 180 days.  Given the tight timing be sure to speak with your CPA in advance. As Reams mentions, "We want to be part of the process, to help a client make an educated decision." 

Curious? Contact us!
If these construction business scenarios sound familiar to you, reach out to Adriane Reams or Ian Grimbleby in the Construction Department while there is still ample time before year-end to implement changes.
Many of our Ag clients are candidates for a 1031 exchange, as well. We encourage you to give Jeff Bowman, Ag Team Lead, a call to discuss any questions you might have.

Meet the Construction Team

September 23, 2015  
The Construction Team has grown and evolved its expertise, one project at a time, since its founding in 2013. The construction niche is especially valuable and has allowed our team to offer this key audience sound accounting, financial advice, and fiscal project management expertise.
We want our construction clients to achieve superior profitability. Given the fast-paced decisions that are made on-site daily, many of our clients rely on our expertise to help them make short-term decisions that will impact their long-term viability.  
"We've been fortunate to have a solid base of construction clients for years, but due to the economy's recent resurgence we've seen a spike in demand," says Ian Grimbleby, CPA, Partner, and Construction Team lead. "We saw an opportunity to develop a specialized construction department, and thus far the response has been very strong. We see that we're making a difference in our clients' businesses."
To better serve our construction clients, we've attended major construction conferences such as CFMA ( and AICPA (, learned more about industry issues and construction software, and immersed ourselves in our construction clients' workflow processes.
Meet the Team!

Ian Grimbleby, CPA, Principal and Team Lead

Ian has been working with construction clients for over 10 years. He specializes in financial statements (audit, review or compiled) and tax returns, but he is also adept at contract/WIP review, accounting software consulting, and financial literacy education for owners and managers. "I enjoy working with construction clients because their work - structures, buildings, roads - is tangible," he says. "It takes discipline to accomplish the job.  I like bringing a different perspective to the table and helping clients make better business and financial decisions." 


Adriane Reams, Construction Team Manager and Co-Leader

Adriane has been working with construction clients for more than eight years. She provides software consultations, income tax planning and preparation, financial statement preparation, and job schedule preparation.  "I enjoy the complexity involved in completing job schedules," she says. "There are always quirks that need to be figured out, just like solving a puzzle. I grew up in my dad's machining business, so I have a strong understanding of family-owned organizations."

Javier Padilla, Experienced Associate

Javier worked in the real estate industry (commercial lending, residential lending and sales) for more than 15 years. Since joining Grimbleby Coleman two and a half years ago, he has worked specifically with construction companies. His main role is to provide services to construction companies through the preparation of their tax returns and financial statements (compiled, review, or audit)."Working in the construction niche allows me to do the three things that I thoroughly enjoy: work with people, work with numbers, and work in the real estate industry," he says. "I've enjoyed learning the intricacies of how our construction clients get the project from bare dirt to a house or commercial building, as well as having the opportunity to work with clients that specialize in certain phases of construction projects."

Amanda Cabral, Accounting Technician

Amanda has been working with construction clients for nine years, including payroll, certified reporting, bookkeeping (accounts receivable and accounts payable), job costing, billing, progressive billing, invoicing, and purchase orders. "I enjoy working with construction companies because every client is so different," she says. "Learning what clients need in order to be successful and to run their businesses efficiently is a continuous learning process for me and I feel like we both take something from each other."

Karen Sanders, Accounting Technician

Karen has been working closely with construction clients for six years to help with accounting services and setup with classifications and costing of jobs through payroll and direct labor costs. "It's like working a puzzle," she says. "I gain satisfaction when I'm able to get all the pieces to fit together correctly and the clients are happy. I love working with my clients and assisting with their accounting needs."


To learn more about the construction team, please check out previous newsletter posts:
Interested in meeting the team in person? Please give Ian a call at 209-527-4220.

Featured Article

Mid-Year Tax Planning: Start Now, Stress Less Later
July 22, 2015 Now that we’re halfway through the year, from a tax-planning perspective it’s time to start thinking about how to build your business or personal portfolio. Mid-year tax planning is a great idea for both businesses and individuals to plan for long-term success.  Instead of waiting to get your ducks in a row in November or December, meet with your tax advisor early to develop a strategic plan for next season rather than scrambling at the last minute. As President and Principal Clive Grimbleby explains, “Meeting mid-summer gives your advisor the chance to check in with you and take stock of your unique situation.”          A mid-year tax planning session will help you prioritize your plans and alert you to opportunities or challenges. It will also give you a chance to ask your advisor any nagging questions that have built up over the past six months, and the space and time to deal with them before the end-of-year crunch. Instead of waiting to get your ducks in a row in November or December, meet with your tax advisor early to develop a strategic plan for next season rather than scrambling at the last minute. As President and Principal Clive Grimbleby explains, “Meeting mid-summer gives your advisor the chance to check in with you and take stock of your unique situation.”  Your mid-year planning session could include:   Reviewing recommendations based on your previous return Reviewing your retirement plan, including options and deadlines Strategic succession planning discussion IC-DISC, employment and R&D credits discussion Review of captive insurance company options Review change in entity type options Upcoming asset acquisitions Discuss tax law regulation changes so far this year Discussion of your estate: Is it performing as expected?  These topics are proactive points for further discussion, but they may not be relevant for all. You’ll find many tax and financial planning articles online and on our website; our team is here to help you cut through the chatter and discuss your unique options. 

Featured News

Golf Fore Hospice
On September 21, Grimbleby Coleman team members attended Golf Fore Hospice to help support Community Hospice patients and families. The Community Hospice Foundation raises funds and awareness in support of Community Hospice's mission to provide compassionate and quality care, education and support to terminally ill patients and their families, regardless of ability to pay.  

Featured Staff

Carmen joined the Grimbleby Coleman team in 2015, bringing with her skills in accounting, tax preparation, and knowledge of the construction and hospitality industries. In her current role, Carmen assists clients with financial preparation and analysis, payroll, and bank statements. She is a graduate of Humphrey's College, holding a Bachelor of Science in Accounting and Business Management. Additionally, Carmen has been a licensed California Tax Education Council (CTEC) Tax Preparer since 2007. 

Carmen's favorite part of working with clients is alleviating their stress and putting smiles on their faces. Perhaps that gets her through the months of January, February, March, and April, when she's working extra hours for tax season. In the summer months, you'll likely find Carmen in Santa Cruz or Monterey with her three children, two boys and one girl, and her husband and best friend, Gilbert. In fall and winter, she's back home for football, the kids' sports, and school activities. 

Carmen also stays busy with hiking, bike riding, shooting, sight seeing... "anything that's outdoors!" She's also an active member of Crossfit Patterson!

When asked about her favorite number, Carmen replied, "I like them all". What good accountant wouldn't? 



Carmen Gusman Accounting Technician read more

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