Capital Expenditure Write-Off/First-year Expensing

Some capital expenses can be written off in the year they were incurred (enhanced Internal Revenue Service section 179 capital expense or first-year expensing), rather than over time through depreciation.  The property (such as trucks, trailers & other vehicles, moving equipment and computers used more than 50% for business) usually must be purchased and placed in service by year end.  “Placed in service” does not necessarily require that the taxpayer start using the property in the business.  Property has been placed in service as long as it is ready and available for use.     First-year expensing is limited to the taxpayer’s taxable income for the year and cannot be used to generate or increase a net operating loss for the current year.  Thus, a taxpayer operating at a loss should not claim first-year expensing.

Under old rules, small business taxpayers were allowed to write off up to $ 125,000.00 (indexed for inflation) of capital expenditures, subject to a phase-out when total capital expenditures exceed $ 500,000.00(indexed for inflation).  In 2008 Congress temporarily increased the amount of write-offs for capital expenditures incurred in that year to $ 250,000.00 and increased the phase-out threshold to $ 800,000.00. Those temporary increases were extended thru 2009.   First-year expensing can be claimed on used as well as new property.

Unless this limit is extended, the ceiling will drop to $134,000.00 for 2010 and the deduction threshold will be $ 530,000.00.

Credit Cards

Accept credit cards (or debit cards) for cash on delivery (COD) shipments and monthly storage charges.  Some customers prefer to use their credit cards and earn certain rewards from their credit card company.  This technology has been improved over the years where you can see quick deposits direct to your bank account from the credit card company.   Please note there are fees charged by the credit card company and/or your bank for this service so you should obtain completive bids from credit card providers to help manage those fees.  Also note that your customer’s credit card information is sensitive and you must train your employees to protect that information.

Mobilization Deposits

Some projects are set up by extending credit to the customer (not COD).  When you have proposed a large relocation or are about to secure a significant project request a down payment from your customer.  This will help your cash flow to meet your payroll and ensure that you have the correct billing information and payment authorizations from the customer.  Deposits up to one third of the estimated cost are reasonable.

 Salary versus Bonus

Many of your best employees may be paid a salary for the year.  Instead of increasing their salary the next time they due for a review, implement a bonus plan.  That way, your payroll costs are not automatically increased and you can pay the bonus to that employee as your cash flow permits.  Depending on how the bonus is calculated your employee may be more motivated than ever before.  Consider adopting a bonus plan that incorporates some of their specific performance and the overall company performance on a short term and long term basis.  

Accounts Payable

There are many vendors that allow you to spread out your payments to them at little or no extra cost.  You may be familiar with aging your accounts receivables list.  You can also “age” your payables which will improve your cash flow.  Set up these vendors with a payment date closer to 40 or 50 days instead of 20 or 30 days from the invoice date.

As an example, insurance is always a significant cost for movers.  The insurance companies may allow you to finance your payments to them at little or no extra cost.

Rolling Stock Purchases

When you purchase trucks, trailers, and other equipment consider making this purchase via capital lease, operating lease or a bank loan.  This will spread out your payments for the rolling stock over the estimated useful life of the equipment.  You will also be better matching the cash outflow for the purchase with the anticipated cash inflow from the revenue related to that equipment.

 Investing in business assets or employees is never just a matter of taxes.  A company must consider whether the investment makes economic sense for them.  Please consult with your tax advisor before acting on any of these topics.  Your tax advisor can ensure you receive the maximum tax benefits considering your company structure, income tax rates, etc.

 Thomas L. Broderick, C. P. A. is the Treasurer of Pickens-Kane Moving & Storage Co. in Chicago, Illinois.  He has served as Chairman of the Board of Trustees of the Illinois Movers’ and Warehousemen’s Risk Management Trust since 1996.  Many individuals, small businesses and non-profit organizations consult him for various accounting, investment, insurance and tax issues.

Revised: March 9, 2010

Facts:

Did you know that in our time, most wine bottles have UV filters for light? Too much light or UV rays can cause a pungent odor to your wine.  Storing wine into dirty containers, and exposure to air can quickly turn you good wine into vinegar.  Wine breathes so you want to keep away from strong odors to avoid the smell going through the cork and tampering with the wine.  Cheap wine does not improve over time.  Red wines usually take 2-10 years to mature depending on the type of wine, the balance of acid, sugars, and tannins.  White wines are generally good for 2-3 years, and White Burgundies (Chardonnay) need to be aged 5-20 years.  Wine should be stored at a cool temperature. The ideal temperature for storing wine would be between 54-68 degrees, not exceeding 75 degrees.  The temperature of wine should never fluctuate more than 3 degrees per day, and 5 degrees per year.  The more changes in the temperature, the greater the chance wine has of over breathing.  If the temperature is below 54 degrees, this slows down the aging process.  If the wine is stored about 75 degrees, it causes the wine to age 4x’s faster than normal, and can lose its fruitiness, and value.  You want to make sure the humidity for storing wine is about 70%, and the air is circulating in the area to reduce the chance of mold.  A hygrometer can track the humidity levels.  Movement or vibrations can decrease the value of your wine.

TIPS FOR WINE STORAGE:

You want to make sure you follow these general rules when it comes to storing your wine. 

• Keep the wine at a constant, cool temperature, never letting the temperature get above 75 degrees; this can cause the wine to oxidize. 
• Its best to store your wine on its side, the key is to make sure you keep the cork from drying out, and causing the wine to oxidize.
• Avoid locations where there is a lot of movement, or vibrations.
• Keep your wine in a dark area, avoid areas of direct sunlight, or UV rays
• High humidity levels are better than low humidity levels for wine.

STORAGE:

Wine storage can be broken down into 3 different categories.  Long Term Storage, Short Term storage, and Storage after the Wine is opened up.

Long Term:  This is generally for wine that will be stored for more than 6 months.  Wine storage should be low constant temperature, about 70% humidity, free of movement and vibration, and a dark area.  High humidity can cause growth of mold on the labels, but is better for the wine.  With too much light, this can result in an off taste and smell to the wine, especially with white and sparkling wines. 

Short Term:  This is generally for wine that will be consumed within 6 months or less.  You want to keep the conditions as close to long term storage, but a short term solution would be like using an interior closet, basement under the stair case, or under the sink as a last resort.

Open Bottles:  If the wine has been opened, you want to make sure (especially if its white wine), it is consumed within 3-5 days.  Make sure the cork is tight on the bottle.  You may want to use a cork stopper and pump to minimize exposure to air.  If storing in a refrigerator, avoid leaving the fridge open for a long time, because the exposure to the light can affect the wine.  If it is red wine, leave out, and keep the cork tight.  Desert wines can generally stay fresh for about 3-5 days.

DIFFERENT OPTIONS FOR WINE STORAGE: 

These are a few options for you depending on which type of storage you are looking for.  Wine storage can come in many sizes, shapes, and colors depending on what your storage needs are.

Wine Racks:  Come in both wood and metal forms, good for use under a bar area, can also come in floor to ceiling models, depending on your needs.  This form does not protect your wine from light, or help avoid temperature fluctuations, but if built in to a location, can avoid vibrations depending on the make. 

Insulated Wine Cellar:  Insulated wine cellars protect your wine from colder and warmer temperatures, and also remain at a constant temperature.  The insulated vs. non-insulated can be more consistent with maintaining temperatures.

Closet Wine Cellar:  Can be built into your home, for instant a closet, and can be kept floor to ceiling.  Can ease with maintaining temperatures, darkness, and avoid vibrations.  You want to make sure with your closet wine cellar that the air quality and circulation is good especially for long term storage.

Wine Cooler/Refrigerator:  A wine refrigerator is a great way to protect your wine; they usually stay at a constant 55 degrees with better air circulation to help prevent any mold growth.

Now that you have finished wine storage 101, you should have a better understanding on the proper ways to store your wine.

When storing documents and other media, there are a few different options available.  For most people’s needs a few tips and a small self storage locker do the trick but there are other services available.

DATA BACK UP SYSTEMS:

For a home based business, certain companies can provide data back up to an offsite server.  Files are encrypted for security and can be accessed quickly and easily.  For residential data backup a password protected CD or DVD is a good way to preserve needed data.

MOVING COMPANY RECORD STORAGE:

Some moving companies specialize in storing, delivery and pickup, and managing documents.  It’s more of a costly option and not necessary for the average home owner.

SELF STORAGE:

This is the most common method people use to storage important documents, medical records, tax information etc.  Follow these tips for the best results.

PACKING TIPS:

 Pack documents in smaller boxes like book boxes or office moving totes.  Paper is dense and the boxes will get heavy fast.  Making the boxes smaller also makes it easier to be more specific with the description of the contents on the outside of the box.  Some people like to use rigid plastic containers for the waterproof factor.  Whatever containers you use mark all boxes on the same end in the top right corner for ease of identification.  Permanent markers and stickers work well to I.D.

STORAGE TIPS:

When storing, many people (and businesses) like to use steel racking or shelving for ease of viewing and retrieval.  The rule of thumb is to store the oldest or least needed items at the bottom and/or in the back.  If you’re not using racking, use pallets or some other method to get the boxes off the ground.  Try not to stack too high as this will make retrieval more difficult.

GENERAL TIPS:

Make multiple copies of stored documents and keep them in a different location.  Any documents that must be originals should be kept in a locked fireproof file or fireproof safe.  When packing CD’s or DVD’s, or video tapes, use ant-static packaging to preserve the date.  Climate controlled storage is preferable to avoid extreme heat and humidity changes.

Following these tips can make storing you information more orderly and easier to maintain.

 Written By:  Maurice Schell, Automotivation Inc. - Lombard, IL

What moves you?  Your Car-It’s second nature to us.  We rely on our vehicles for everything from retrieving living essentials to vacationing.  During long distance moves or interstate moves, the maintenance of a vehicle is more important than ever.

Now that your Moving, did you give any thought as to whether your car is ready?  Have you been regular in the repair and maintenance of your vehicle?

Before you move you should do the following maintenance to your vehicle:

• Complete Visual inspection
• Check tire pressure, tread depth and age of tires
• Inspect brakes for wear and fluid leaks
• Pressure check cooling system for leaks and hoses for weakness
• Inspect Serpentine belt or fan belts for cracks
• Check physical condition of battery and cables.  Load test battery and alternator output
• Perform starter draw test
• Check engine oil-should be fresh or clean
• Check transmission oil-should be red without “burnt smell”
• Check that the engine is in the proper state of tune
• Review all lights and signals
• Scan vehicle computer for codes.  Any “check engine” light requires repair before your move

REVIEW VEHICLE HISTORY

Have you kept good records of your vehicle repairs and maintenance?  Did you have a relationship with your repair facility that can provide you a “history” of repairs with dates along with mileage?  Having a good history will help you when the time comes for your next repair.  Should a part previously installed in the vehicle fail, you might have a warranty; otherwise having good records can provide you peace of mind in your new town.  This preventative medicine can help your long distance move flows a little smoother and reduce your areas of concern by one.

There are a few different types of vehicle storage; so the first thing you have to do is figure out what level of service and what price point you need.  There are substantial differences between the needs of a out of season landscaping vehicle, and a vintage muscle car.  The following are the different types of storage for vehicles and the aspects of each.

OUTDOOR VEHICLE STORAGE:

This can be either covered or uncovered and can be either paved or gravel.  This option is the least expensive, has the least security and usually is the best fit for short term storage or when condition of the vehicle isn’t a concern.  Many times people who choose this option purchase a cover to protect the vehicle. 

INDOOR GARAGE SPACE:

This is another option for storing a vehicle.  This option costs a little more, has more security, and the vehicle is inside out of the elements but not usually climate controlled.  There is generally garage door access.

CLIMATE CONTROLLED VEHICLE STORAGE:

This is the most expensive and most secure.  It’s an indoor storage facility, kept between 50-80 degrees Fahrenheit and is the best fit for vintage or expensive vehicles that need the highest level of service.

THINGS TO CONSIDER WHEN CHOOSING VEHICLE STORAGE:

1.  Are there size restrictions in the facility that you choose?  Generally, the outside vehicle storage facilities don’t have the height or width restrictions that the 2 indoor options do.  Many times garage door height is a factor.
2.   How often do you need to take the vehicle in and out of the storage?  If the vehicle is to be stored and left for months it doesn’t matter, if you need to get at the vehicle regularly ease of in and out access and hours of operation of the facility are two important things to check.
3. See if the vehicle storage facility charges monthly or if charges can be prorated to the day or week.  Also, see what the facilitys’ liability is, if there is any damage to your vehicle.

Like other storage, storing a vehicle is a prospect that should be tailored to each individual need.  Due diligence and some shopping is a good idea.

As kids grow into teens, they are more likely to experience sadness, anger or depression when moving away.  Research shows that teens spend at least 1/3^rd of their day with friends and peers between schools, activities, and just hanging out.  This is one of the toughest changes they will experience, and to be separated from their schools, home, neighborhood, and friends is very traumatic.  Unfortunately teens do not always know how to cope with their feeling of the loss.  Making and keeping friends is very important in a teenager’s social development.  Remember it is natural for your teen to start backing away and withdrawing or even kicking and screaming during this relocation process.

HELPFUL TIPS:

Get Them Involved:

If your still looking for your new residence, ask your teen for their opinion, get them involved.  Give them a project (like picking out colors for their wall), or helping you on where you want the furniture to go, or getting their opinion on picking out the house. 

 Visiting the New Neighborhood:

Take your teen to the new area; let them get to scope the area out.  See if there are any clubs, sports, activities that they may be interested in including school activities, or outside school activities.  Figure out where shopping centers, activities, etc are.  See if there is voluntary stuff, or festivals, something fun your teen may want to get involved with. Finding stuff for your teen to do can be helpful so they have something to look forward to.  Make sure when you are registering for school, they are present so they have a chance to check out their new high school, and other activities the school may have.

 Discuss Visiting the Old Neighborhood: 

Your teen may be old enough to drive themselves, so figuring out when they can go back and visit old friends is a good plan.  If relocating out of state, maybe they can have a friend for a weekend, or plan a weekend back at their old neighborhood, don’t restrict them, or they will rebel.  By allowing them visits, it can make things a little easier on the moving process.

 Allow Your Teen To Express Their Feelings:

Your teen is most likely going to be emotional over the process.  They will probably be thinking you should allow them to graduate and then move and will probably be resentful.  Allow them to express themselves, let them know they are heard.

 Figure Out How They Would Like to Say Their Goodbyes:

Whether it is a going away party for their closest friends or a weekend away.  If you do not allow your teenager to go through the hugging, crying, and the saying goodbye process, they will probably regret it, and be resentful towards you.

 THINGS NOT TO DO:

 Youll Make New Friends:

Don’t tell your teenager that they will make new friends, they are not worried about making new friends, they are more concerned with parting with the old friends.

 Don’t Bribe Them:

Whether its new clothes, car, accessories, etc, it’s not going to change how they feel, so bribing is never a good approach.

 Don’t Turn Your Back:

Expect your teenager to have fits and tantrums.  They will most likely withdraw, and, probably want their space.  Make sure your teen knows you are there for them, and again allow them to express themselves.

Remember you must be firm in the relocation process, even if there is screaming, kicking, and crying.  Your teenager will bounce back, and change is difficult, but over time, they will adapt.

Antique furniture is generally more sensitive and often more valuable than newer furniture so there are some tips to follow when placing such items in storage.  Following these rules and warnings can help preserve the condition of your pieces and help them hold their value.

TEMPERATURE AND HUMIDITY:

This is Critical when storing antique furniture.  Temperatures need to be consistent and kept between 50 degrees to 75 degrees Fahrenheit.  Some storage facilities also regulate humidity which is good for the furniture and can help avoid expansion and contraction.

DISASSEMBLY:

Disassemble furniture as much as possible before storing.  Mirrors on dressers, headboards and footboards, doors with removable pins are all items that should be taken apart and wrapped separately before placing in storage.

PREP AND WRAP PROPERLY:

Before you put your items into storage, make sure everything is prepped and wrapped properly.  For wood use a wood conditioner before storing, for leather a leather conditioner.   When wrapping wood, use brown paper pads as they won’t react with or harm the finish of the piece.  For leather, use paper pads first, then if you want to use plastic stretch wrap go ahead.  Do not use plastic stretch wrap directly on wood or leather.

POSITIONING THE ITEMS IN STORAGE:

How you place the items is also important when it comes to antiques.  Don’t stack the pieces as you would normal furniture.  The less weight or strain on the joints the better.  Glue can loosen and joints can become sloppy over time, if strained.  Place the piece as it would sit on the floor.  A table should be on all 4 legs, a sofa or other upholstered piece should always be left on their feet, it’s much better for the frame.

Insuring items is important when it comes to antiques.  Most storage facilities offer some type of coverage options.  Check them out or check with your home owners or renters policy.  Full coverage isn’t just included or assumed.  If you need to get appraisals on your pieces to verify value, visit www.appraisers.org, or contact:

 If you follow these tips, your chances of keeping your antique furniture safe are greatly enhanced.

Gainsharing is a concept that was popular in the 80’s and as Dick Wessels of Wessels Sherman Joerg Liszka Laverty Seneczko, PC writes in an article from November 2009, it is gaining popularity again.

Gain sharing is a group pay-for-performance program that motivates and rewards employees for measurable improvements in performance in areas like productivity, quality, safety and customer service.  The whole idea is to improve the quality of work, reward employees and build a stronger bond between the employees and the company.

In the program, employee performance is quantified and given a dollar value.  When the performance reaches and exceeds a target threshold preset by management the company receives half the value of the improvement, the employees receive the other half.    The bonuses that employees earn usually have to be re-earned monthly to avoid complacency.

The article goes on to explain how the system works with 3 major points being employee involvement in plan design, simplicity, and open communication.  The program, it’s explained, reduces employees’ interest in complicated work rules and can often replace pay increases during negotiations, it’s my opinion that this program could work nicely with moving companies. 

Finally, the difference between gain sharing and profit sharing is spelled out along the gain sharing benefits of better employee behavior and effort, higher productivity, and improved employee attitudes.  Several related articles are listed for those who would like to read more on the topic.  To read the  article click Gain Sharing:  Key to Better Employee Relations in Union and Non-Union Companies Alike.

When a friend moves away it can be devastating on a child.  When I was growing up, my best friend who lived next door, moved far away.  The separation was hard and I always wondered what she was doing.  We were able to reconnect 20 years later, but I wonder how things would have been different if our parents had kept us in contact.  There are ways to soften the blow of a friend moving away.  Here are some ideas:

For younger children,  7 years old and under, the consensus is that it’s better to wait to right before the move to break the news.  Then explain that there are changes happening and their friend is moving.  For children 8 years old and older the rule of thumb is to present the news ahead of time so the children have more time to prepare themselves, say goodbyes, etc.  The key in this presentation is to convey a positive attitude about the change.  Focus on the brighter side like their friend may have a bigger house, be closer to other family, or other situations that puts the transition in a positive light.

WAYS TO PREPARE AND COPE:

Get your child involved in activities: 

 Plan play dates, new activities, clubs, etc, something that is going to help them get involved with other children their age,  so they are being active, and not dwelling on their friend being gone.  The busier they are, the better they will adjust.

Plan a Play Date: 

Whether it’s a final play date with their friend, this will be good, also include other kids, so then your child does not feel alone or sad when the other child has left.

Going Away Parties: 

 If they are planning a going away party, have your child get involved in helping so they feel like they are a part of this aspect.  If there is not one planned, have your child plan a going away party with a couple of friends.

Keep In Touch: 

Make sure you figure out with the other parent different ways the kids can still communicate after the move.  Whether it is talking on the phone (exchange phone #’s)like skype, chatting on the internet like facebook (if old enough), or www.kidschat.com, or other similar sites, this can make the communication easier.  Another option would be to let them be pen pals or write letters.  You should also try to figure out with the parent if they are not moving out of the state or country when you could schedule a visit, maybe once a month, or every couple months, so the kids can still see each other.  In our internet age, contact is so much easier than it was 20 years ago.

Keepsake: 

 Your child could make a photo album, or scrap book so they have memories of their friend.  This is also a good going away present for the other person if the child creates something for the other child to have memories to go away with. 

Feelings Count too: 

Find out how your child is feeling about the move, open ended questions can get your farther.  Let your child know that you are there for them, and allow them a chance to express their emotions.  A good icebreaker or way to get them to open up would be doing this over something fun like going out for ice cream, or pizza, or for a walk.

Stay Positive: 

 Remember to be positive through the whole process, the more positive you are, the better the outcome will be.  Allow your child to be sad if need be, working through emotional periods is good, just be supportive.

If you’re movers quotes are not guaranteed on a weight/distance shipment, there are ways that the shipments weight can be falsified and exaggerated to inflate the cost.

1.  The driver can get an empty weight with a smaller lighter tractor than the tractor used for the heavy weight.
2. The driver can get an empty weight with empty fuel tanks and a heavy weight with a full fuel tank, this can potentially add up to 1500 lbs to the shipment if his truck has twin 150 gallon fuel tanks (diesel is 5lbs per gallon).
3. The driver can put something on the back of the trailer for extra weight, 5-6 people, a skid of heavy materials like newsprint; even one instance a driver put a jeep wrangler on the trailer to get the heavy weight.  All of these cases do the same thing to inflate the weight of the shipment and the cost to the customer.
4. Some driver can even get small weight ticket machines or metal imprints to manufacture bogus weight tickets from fictional scales.

To avoid these potential problems, watch the truck weight at a Certified Scale before and after loading.  It’s an extra stop but it confirms that he shipments weight is accurate and the charges are fair.  By no way is this painting a picture that all movers are trying to cheat the public, they’re not, but this can protect you against the few bad apples that operate dishonestly.