Congress just passed the Protecting Americans from Tax Hikes Act of 2015.  The Act extends some tax benefits that are important to the owners of security and alarm companies.  As many company owners are painfully aware, Congress has temporarily “extended” many of these items in the past but they were either done for a year at a time, or, as in the case of last year, in arrears so that they covered the prior year but not the current or future years.  The following is a brief summary of the features of the Act that affect security and systems integration owners.  I have published a more detailed article on the Electronic Version of Security Sales and Systems Integration http://www.securitysales.com/article/how_does_congress_new_tax_bill_affect_security_alarm_companies and the article will run in a print version in January or February.

  • Section 179 expensing of capital purchases (vehicles, equipment, etc…) has been permanently extended.
  • Bonus Depreciation has also been permanently extended.
  • Another feature, and perhaps the biggest news for the alarm industry, is the permanent extension of the five year holding period for Built In Gains.  Built In Gains refers to the taxation of assets of a newly converted S Corporation.  The SSI article goes into more detail, but if you have been thinking about switching from a C to an S corporation December 31, of this year may be the time to do it.

Of course the Act is complex and you should discuss its effect on your company with your tax advisor.  If they don’t understand the effect call us.  The Act has some very pro business measures, but it is not so pro business that the President won’t sign it. 
Mitch Reitman
Reitman Consulting Group
Fort Worth, TX 76133
        For accounting and tax work, keep it simple.  Just call Mitch.
    I am signing a new business customer. I use your Commercial All In One Agreement. I originally wrote the agreement using the name of the business the sub gave me. He asked it to be written under a different LLC name with him as the property manager. When I looked up the new LLC it lists another legal corporate entity as the owner of the LLC. Please advise as to who should sign as he is not listed on any of the corporate names he gave me. It seems like there is a maze of owners to protect them and leave me holding the bag if things go bad.
Ross Chadwell, President
Florida Alarm
    Good catch.  Know who your subscriber is.  The wrong name on a contract can, at the very least, complicate your collection of defense efforts, and could, at the worst, have your contract tossed out and leave you without any contractual protection or rights.  If one entity wants to sign for another then be sure to get authority from the principal.  An agent cannot validate its agency on its own, you need confirmation from the principal if you want to hold the principal to the agreement.  Ask for forms of indentification, personal and corporate.  It will save you trouble later.