Spring 2011 issue of Horizons

Hospitality & Gaming

Observations From 2003

Predictions For 2011

INSURANCE

There is an “insurance” crisis around the country in the home building industry. Builder’s risk and other liability insurance is very difficult to obtain.

Several changes have occurred in insurance, and in particular, the title industry. Lien laws have changed in many states as a result of pressure from the insurance companies. The IRS and current administration have made the employee versus independent contractors issue a topic of concern. However, the current high unemployment rate seems to make “strict” enforcement less of a priority. Builders’ access to the credit they need to start new homes remains the fragile component of any forecast. Small builders have experienced extreme difficulty in obtaining financing, and rectifying the situation as soon as possible is the top priority of any sustained recovery.

OVERSIGHT

The IRS is looking at the construction industry in particular. They feel there is an increase in the number of people being treated as subcontractors versus employees. This results in some loss of payroll taxes and in the timing of payments. Housing will see gradual improvements in activity this year as the nation’s economy and job market continue to move to higher ground, establishing momentum that will produce more considerable gains in 2012 predicts NAHB economists.

RubinBrown’s Home Builders Services Group With substantial expertise in the home building industry, we serve home builders not just in the Midwest, but across the nation. Steve Hays, CPA - St. Louis Partner-In-Charge

Glenn Henderson, CPA, CFP - Kansas City Partner Home Builders Services Group glenn.henderson@rubinbrown.com 913.499.4429

Home Builders Services Group steve.hays@rubinbrown.com 314.290.3336

Felicia Malter, CPA - St. Louis Partner Home Builders Services Group felicia.malter@rubinbrown.com 314.290.3249

Jim Massaro, CPA - Denver Partner Home Builders Services Group jim.massaro@rubinbrown.com 303.952.1211

www.rubinbrown.com

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