Western citrus leaders anxious to learn from Texas HLB
MaryLou Polek of the California Citrus Research Board concurs with other Western citrus leaders: It is a matter of when ? not if ? citrus greening disease is found in California and Arizona. <div class="field-image-promo"> <a href="/orchard-crops/western-citrus-leaders-anxious-learn-texas-hlb" class="imagecache imagecache-med_crop imagecache-linked imagecache-med_crop_linked"><img src="http://westernfarmpress.com/site-files/westernfarmpress.com/files/imagecache/med_crop/uploads/2012/02/citrus-psyllid-check.jpg" alt="" title="" class="imagecache imagecache-med_crop" width="355" height="200" /></a> </div> <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/orchard-crops/western-citrus-leaders-anxious-learn-texas-hlb" target="_blank">read more</a></p>
Asian citrus psyllid - Huanglongbing disease photos
<div class="field-image-promo"> <a href="/orchard-crops/asian-citrus-psyllid-huanglongbing-disease-photos" class="imagecache imagecache-med_crop imagecache-linked imagecache-med_crop_linked"><img src="http://westernfarmpress.com/site-files/westernfarmpress.com/files/imagecache/med_crop/gallery_promo_image/CITRUS PROCESSING.jpg" alt="" title="" class="imagecache imagecache-med_crop" width="355" height="200" /></a> </div> <div class="og_rss_groups"></div>
Arizona Agri-Weekly: barley seeding in final stage
Ariozna alfalfa conditions remain mostly fair to good. Harvest continues in a few areas across the state. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/vegetables/arizona-agri-weekly-barley-seeding-final-stage" target="_blank">read more</a></p>
EPA questioned over CAFO rules
<div class="field-byline"> National Cattlemen&#039;s Beef Association </div> The center of CAFO concern stems from what was referred to as a serious overreach of EPA's authority. NCBA Deputy Environmental Counsel Ashley Lyon said the proposed rule could put the nation's food system at risk of increased terrorist attacks. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/government/epa-questioned-over-cafo-rules" target="_blank">read more</a></p>
California Crop Weather: more rain needed in dryland grain
Dryland grain growth and development improved from recent rains. However, crops were irrigated since more precipitation was needed to sustain growth. <div class="field-image-promo"> <a href="/tree-nuts/california-crop-weather-more-rain-needed-dryland-grain" class="imagecache imagecache-med_crop imagecache-linked imagecache-med_crop_linked"><img src="http://westernfarmpress.com/site-files/westernfarmpress.com/files/imagecache/med_crop/uploads/2012/02/barley.jpg" alt="" title="" class="imagecache imagecache-med_crop" width="355" height="200" /></a> </div> <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/tree-nuts/california-crop-weather-more-rain-needed-dryland-grain" target="_blank">read more</a></p>
Developing nations leap ahead in GMO race
Biotech crops were planted by 16.7 million farmers in 29 countries, up from 15.4 million farmers in the same number of countries in 2010. The global value of biotech seed alone was $13.2 billion in 2011, with the end product of commercial grain from biotech maize, soybean grain and cotton valued at $160 billion or more per year. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/government/developing-nations-leap-ahead-gmo-race" target="_blank">read more</a></p>
US organic trade regulations eased with Canada
U.S. organic dairy, beef, sheep, goat, and bison producers exporting products to Canada will benefit from more streamlined trade. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/government/us-organic-trade-regulations-eased-canada" target="_blank">read more</a></p>
Beef and Livestock Pavilion brings competition to World Ag Expo
At World Ag Expo 2012, Pavilion D, which is home to beef and livestock exhibitors, seminars, live cattle demonstrations and new for this year, a ranching and livestock competition, is the place to be to see the latest advances in the beef and livestock industries. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/management/beef-and-livestock-pavilion-brings-competition-world-ag-expo" target="_blank">read more</a></p>
Potential builds for Trans-Pacific Partnership
A multi-lateral trade deal among nine Pacific Rim nations including the US has drawn significant attention around the globe. Rod Bain looks at why the Trans-Pacific Partnership could be the next big deal in this edition of "Agriculture USA". <div class="field-audio-file"> <span>Audio File:&nbsp;</span> <div class="filefield-file"><img class="filefield-icon field-icon-audio-mpeg" alt="audio/mpeg icon" src="http://westernfarmpress.com/sites/all/modules/contrib/filefield/icons/audio-x-generic.png" /><a href="http://westernfarmpress.com/site-files/westernfarmpress.com/files/podcast/audio/tpp potential.mp3" type="audio/mpeg; length=4804086">tpp potential.mp3</a></div> </div> <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/government/potential-builds-trans-pacific-partnership" target="_blank">read more</a></p>


segregation study. Real estate depreciation schedules are typically established by simply separating land and long-life property. Although this method is simple,it is inaccurate and understates allowable depreciation. This simple method virtually guarantees paying excessive federal income taxes. Long-life property is depreciated over 27.5 years for rental residential property and 39 years for commercial property. Cost segregation can usually increase depreciation by 50% to 100% during the first five to seven years of ownership by allocating a portion of the cost basis to 5, 7 and 15 year property. Short-life property includes items such as carpet, vinyl tile, some signs, sidewalks, landscaping and paving. In addition, real estate owners can "catch-up" depreciation under reported in prior years without filing amended tax returns.

Fixed asset audits can be a cost effective means to increase operating expenses by removing phantom assets, removing operating expenses mistakenly coded as capital expenditures and correcting the depreciable life for incorrectly coded items. In most cases, the tax savings from a fixed asset audit will be much higher than the fees for the audit. Phantom assets can include assets which have been lost, stolen or disposed of without removing them from the accounting records. The undepreciated basis of these assets can be converted to an operating expense after the error is discovered. In some cases, substantial operating expenses are incorrectly added to the fixed asset listing as capital expenditures. This could include items such as substantial roof repair or parking lot repair. Another example is extensive repairs to a massive chilled water cooling system; are these repairs or a capital improvement? Accounting professionals could vehemently argue both points of view. The undepreciated basis of these items can be converted to an operating expense and written off when the error is discovered. The fixed asset listing is massive for many companies, sometimes exceeding 1,000 pages. With so many assets, it is difficult to ensure all are accurate. After an acquisition, aggregating the faxed assets schedules often results in assets receiving minimal review due to time pressures to complete the project. For items added with an incorrect and excessive depreciable life, it is possible to revise the asset life and "catch-up" depreciation under reported in prior years without filing an amended tax return. Instead, a form 3115 is filed with the tax return.

The difference between capital expenditures and operating expenses is often subjective. Are substantial roof repairs a capital expense or an operating expense? Reviewing disbursements which were listed as capital expenditures in 2006 may uncover items which can be converted to operating expenses.

Federal income taxes are a substantial expense for successful businesses. However, since it is difficult to profitably operate a business, it is worth reviewing legitimate options to keep more of what you have earned. Tax planning is less glamorous than purchasing a new company or developing a new division. However, a modest effort focused on reducing federal income taxes can sharply increase net income.

Patrick O’Connor, MAI is president of O’Connor & Associates, a 180-person real estate services firm in business since 1974. Further information on reducing income taxes is available at: http://www.poconnor.com/federal_tax_reduction_overview.asp.
O’Connor can be reached at 713 686 9955 or poconnor@poconnor.com.

Article Source: http://activeauthors.com

Patrick O’Connor, MAI is president of O’Connor & Associates, a 180-person real estate services firm in business since 1974. He can be reached at 713 686 9955 or poconnor@poconnor.com.


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