Did you know?
- Gardiner Thomsen has been around since 1964
- We have 37 employees and 4 offices throughout Iowa, Nebraska and South Dakota
- We audit over 150 organizations, including:
- Over 100 farmer cooperatives
- Over 25 credit unions
- Over 10 local governments
- Our cooperative clients are spread across 7 Midwest states and California
- Our partners have over 175 years of combined experience
We may be quick to brag about the number of large organizations we work with; but we proudly serve all of our clients, regardless of size! Your continued patronage of our firm has allowed us to continue to grow. We believe our continued growth, focus on our specific client concentrations and retention of key staff have contributed to our success. We are very appreciative of your confidence in our firm and hope we continue to earn that confidence, as we strive to deliver the highest level of valuable service to your organizations.
By: Gardiner Thomsen CPAs | email
What we’ve seen in 2011:
- Most clients were more profitable in 2011 compared to 2010, and many reported record earnings. Higher commodity prices along with increased or steady grain and agronomy volumes meant sales dollars were also considerably higher in 2011.
- A range of margins in 2011: averages slightly higher than 2010; some of the best grain margins ever; agronomy margins as good as or better than past years and closer to historical averages.
- Excellent fall fertilizer season increased volumes, gross margins, and local savings.
- With higher grain prices, producers sold and storage income decreased, while a shorter, drier harvest season led to substantially lower and more “normal” grain drying revenues.
- With higher commodity prices, borrowing was up, contributing to increased interest expense.
- “Speed and space” construction continued. Many clients built grain storage at multiple locations.
- The increased presence of OSHA, and the costs associated with compliance.
- Increased use of accelerated depreciation rules to reduce current income tax liabilities, as well as more clients allocating the gross domestic production deduction (Section 199) to patrons as part of their year-end patronage allocations.
- Bigger, stronger balance sheets.
What we expect to see in 2012:
- Continued investments in grain and fertilizer facilities, the shuttering of inefficient/ineffective facilities, and increased OSHA compliance costs
- Less aggressive book depreciation, continued aggressive use of bonus depreciation, and increased use of non-qualified patronage allocations
- A slow-down of member equity revolvements/retirements, and the re-balancing of member equity and permanent equity (retained earnings)
- Use of Section 199 as a means of enumerating the member (allocating the deduction to the member)
- Continued efforts to mitigate price risk in agronomy
- More joint ventures, strategic alliances, and ramping up of merger talks again
- More difficulty in finding and retaining experienced staff (management, grain, agronomy, feed, energy and accounting)
- More fraud, larger companies, more employees, less loyalty, more perceived opportunity and rationalization
By: Gardiner Thomsen CPAs | email
Concerned about global warming and other environmental challenges, many businesses are going “green.” Besides being socially responsible, employers may derive some tax benefits.
- Mass transit passes – Employers may receive tax incentives for offering employees mass transit passes.
- Carpooling – Encourage employees to carpool in a company-owned “commuter highway vehicle.” As with mass transit passes, the maximum tax-free monthly benefit for 2008 is $115 per employee. Certain qualifications apply.
- Telecommuting – Although there is no specific telecommuting tax break for employers, employees may qualify for home office deductions.
- Hybrid vehicles – A company is entitled to a tax credit for buying hybrid vehicles or certain other vehicles using alternative fuel sources. The credit amount for a new hybrid vehicle may range from $250 to $3,400 depending on its fuel economy.
- Energy-efficient buildings – Owners of commercial bui
ldings can make their buildings more energy efficient and qualify for a special tax deduction if certain federally mandated standards are met.
- Energy-efficient equipment – Companies may qualify under Section 179 to deduct up to $250,000 of the cost of energy efficient equipment placed in service in the tax year beginning in 2008. A 50% “bonus depreciation” deduction is also available for new equipment purchased this year.
- Environmental clean-ups – Generally, these costs are treated as capital expenses, however a company may deduct certain qualified expenses for cleaning-up hazardous materials if the expenses were paid or incurred before January 1, 2008.
Many environmentalists don’t believe the tax code goes far enough to encourage “green behavior.” Members of Congress have discussed several new tax breaks such as incentives for wind, solar and other renewable energy sources. With the issue taking on such prominence today, is likely that tax breaks for improving the environment will expand or be extended in the near future. Consult with your tax professional to maximize the benefits for your company.