Spring 2013 issue of Horizons

TABLE OF CONTENTS

horizons A publication by RubinBrown LLP SPRING 2013

Features

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Welcome from the Managing Partner

RubinBrown News

Chairman’s Corner

Chairman James G. Castellano, CPA

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The Impact of the New Medicare Tax

Managing Partner John F. Herber, Jr., CPA

Private Company Financial Reporting: Building the Infrastructure for the Future

Denver Office Managing Partner Gregory P. Osborn, CPA Kansas City Office Managing Partner Todd R. Pleimann, CPA

Tax Planning Strategies for Company Aircraft

Timely Reminders

Industry-Specific Articles

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colleges & universities Regulatory Assessment of Private Institution’s Financial Responsibility The NAICU made formal recommendations for the Department of Education to consider regarding the financial responsibility test. public sector How Recent Changes in Auditing Standards Will Impact Governmental Entities An explanation of SAS 122, SAS 125 and additional Yellow Book standards. Value-Added Versus Non-Value-Added Expenses Identifying which costs to keep and eliminate can help manufacturers improve bottom-line results.

professional services

real estate Tax Reform’s Unintended Impact on Affordable Housing Development One LIHTC project is a shining example of the positive impact on a community and what could be lost. life sciences Tax Changes & Valuation Issues Unique to the Life Sciences Industry Because Life Sciences companies are often in earlier stages, additional tools may be used to help more accurately value the company. construction Impact of New Tangible Property Law on Construction Companies Helping construction companies determine how tangible property expenditures should be categorized.

Editor Dawn M. Martin

Market Sourced Apportionment for Professional Services Firms Income tax considerations for service- oriented organizations when crossing state lines for business. A Recap from the 2013 RubinBrown Not-For-Profit Update An overview of financial reporting trends, FASB update, tax topics and more. hospitality & gaming Commercial & Tribal Gaming Revenues Reach All-Time High in 2012 While the expansion of gaming has benefited the industry as a whole, it has also created a highly not - for - profit

Art Director Jen Chapman

Horizons, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matters covered. Although prepared by professionals, its contents should not be construed as the rendering of advice regarding specific situations. If accounting, legal or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions (contact information is located on the back cover). Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.

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manufacturing & distribution

Readers should not act upon information presented without individual professional consultation.

competitive regional market, particularly along state borders.