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The Tax Cuts and Jobs Act of 2017 Makes Bonus Depreciation Even More Useful

Posted by on May 21, 2018 in Uncategorized | 0 comments

The Tax Cuts and Jobs Act of 2017 Makes Bonus Depreciation Even More Useful

Everyone knows about the Tax Cut and Jobs Act of 2017. The new tax law significantly reduced tax rates for many taxpayers. The new tax law also changed the depreciation rules in equally significant ways. On such way is the new availability of bonus depreciation both at a higher percentage and on a wider range of tangible assets. Under the new law, qualified property (defined as tangible personal property with a recovery period of 20 years or less) placed in service after September 27, 2017, will be eligible for 100% bonus depreciation through December 2022. The new law also eliminates the requirement that the original use of the qualified property begin with the taxpayer, as long as the taxpayer had not previously used the acquired property and the property was not acquired from a related party. The inclusion of used property is a significant, and favorable, change for buyers acquiring a business. This means bonus depreciation can be applied in Year 1 following the acquisition to offset tax liability. This will often free much-needed cash flow to service debt and fund other cash transition costs that often make the first year after an acquisition the most difficult year. Andrew J. Miller, JD, CM&AA® advises buyers and seller of main street and middle market companies in private mergers and acquisitions. He is recognized as a Certified Mergers & Acquisitions Advisor® by the Alliance of Mergers & Acquisitions Advisors, an organization focused on the private middle market. He can be reached at (717) 845-1524, or amiller@mpl-law.com. Learn More About Andrew J. Miller, JD, CM&AA® > Learn More About Business Law: Should I buy Assets or Stocks? Misrepresentations of Criminal Record on Job Applications American Bar Association Releases 2017 Deal Points Study Pennsylvania Mechanics Lien Law and Amendments under Act 142 Buyer Beware of Working Capital Adjustments   Last Updated November 8,...

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American Bar Association Releases 2017 Deal Points Study

Posted by on May 11, 2018 in Uncategorized | 0 comments

American Bar Association Releases 2017 Deal Points Study

The American Bar Association Mergers & Acquisitions Committee has released its Private Target Mergers & Acquisitions Deal Points Study. The new study includes transactions through the first half of 2017. The study gives many benchmarks for commonly negotiated terms in private transactions. The study also shows some trends that indicate sellers recently have more negotiating leverage. This is more evidence we are in a middle market seller’s market (and may have crested). Legal opinions of the target counsel were only required in 7% of transactions in 2016-17, down from 30% in 2006. Indemnity caps in 2016-17 were down to a mean of 12.20% and median of 8.40%, down from a mean of 18.88% and median of 10.00% in 2010. Escrows/Holdbacks in 2016-17 were down to a mean of 6.66% and median of 7.00%, down from a mean of 9.14% and median of 7.50% in 2014. The Deal Points Study is a useful tool for counsel and clients to evaluate the market trends in the terms of private transactions. The study can be used to gain consensus on difficult issues and also to evaluate the allocation of risk between a buyer and seller that can be expected in a transaction. Andrew J. Miller, JD, CM&AA® advises buyers and seller of main street and middle market companies in private mergers and acquisitions. He is recognized as a Certified Mergers & Acquisitions Advisor® by the Alliance of Mergers & Acquisitions Advisors, an organization focused on the private middle market. He can be reached at (717) 845-1524, or amiller@mpl-law.com. Learn More About Andrew J. Miller, JD, CM&AA®...

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How to Avoid Drinking and Driving

Posted by on May 14, 2015 in Uncategorized | 0 comments

How to Avoid Drinking and Driving

For many of us, alcohol plays a reasonable role in our lives. It can be a social lubricant, an object of gourmet appreciation, or simply a way of kicking back after a hard day at work. We all know that drinking and driving don’t mix, but sometimes circumstances cause us to forget this or to make compromises that put others at risk. Ultimately, there’s no excuse for drunk driving. There are, however, plenty of ways to avoid getting a DUI while still enjoying a night out on the town. Here’s a quick rundown of the best ways to stop drinking and driving before it starts. Stay Close to Home Choose to drink in your neighborhood. Not only will you avoid having to drive, but you’ll also get to enjoy a refreshing walk home at the end of the night. Taplister.com is an online directory of craft brewers that’s searchable by ZIP code — you can also check Yelp.com, Thrillist and other online resources to search for new restaurants and bars to explore. Who knows, you might discover your new favorite watering hole right in your backyard. Uber It! The popular ride sharing app UberX recently launched in York, Lancaster and Reading, giving everyone with a smartphone the opportunity to save money on expensive, unreliable cabs and get door-to-door service to anywhere in the area. Once you’ve downloaded the free app to your phone, getting started only takes a few minutes. Best of all, once your credit card information is stored in the system, you never have to worry about having cash or change on hand — billing is taken care of automatically. Keep Track of How Much You Drink Ideally, anyone who chooses to drink should find a way home that doesn’t involve driving themselves. However, if you’re over 21, it’s technically legal to operate a vehicle provided your BAC is under the legal limit. Depending on how quickly your body processes alcohol, this can mean anywhere from one drink to three over the course of the night. Too often, however, it’s easy to lose track of time and of the amount we’ve consumed, which can potentially push you over the limit without realizing it. One way to avoid this is by using an app like Intellidrink or Drinking Buddy, which tracks your consumption and alerts you when your BAC exceeds a preset limit. Men’s Fitness magazine has a great rundown of available programs on their website. Know the Consequences Apps and rideshares are all great ways to avoid drinking and driving, but when it comes down to it, the better informed you are about the risks of driving drunk, the more you’ll be able to resist the temptation to get behind the wheel. In 2013, our state experienced 381 deaths and over 7,900 injuries as a result of drunk driving. If convicted, a https://mpl-law.com/practice-areas/criminal-law/dui-defense/DUI conviction in PA can result in penalties ranging from a $300 fine to up to 10 years in jail, if an injury or fatality is involved. If you find yourself on the receiving end of a DUI charge, we can help. With over 25 years of representing clients in the York, PA area, MPL Law Firm is experienced in helping clients find the most favorable outcome to their criminal charges. Contact us today or call us at 717-845-1524 to schedule a consultation today. Note: This post is intended to provide useful tips for readers, and is under no circumstance to be interpreted as legal advice or as establishing an attorney-client relationship. Learn More About Criminal Law: Understanding a DUI Charge: Is It a Felony?...

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Business Privilege Tax can’t be collected on lease rental income

Posted by on Oct 27, 2014 in Uncategorized | 0 comments

Business Privilege Tax can’t be collected on lease rental income

The Pennsylvania Commonwealth Court recently held in Fish et al. v. Township of Lower Merion, No. 1940 C.D. 2013, that a first class township cannot impose a business privilege tax under the Local Tax Enabling Act, calculated using gross receipts, on a landlord’s lease rental income within the township.  The Court found that under Section 301.1(f)(1) of the Local Tax Enabling Act, local authorities do not have the power to levy, assess or collect “any tax on … leases or lease transactions.”  The Court determined that such a tax would be invalid regardless of whether it was collected on monthly rental income or on annual gross receipts from rental income.  The Court reached a different conclusion with respect to an annual registration fee charged on each rental property.  The Court held that a lease falls within the definition of “business, trade, occupation or profession” as defined in the Local Tax Enabling Act, even though not specifically referenced in the definition.  Therefore, the Township would be allowed to collect a registration fee under the Local Tax Enabling Act on the business activity of leasing property, but would not be allowed to levy a business privilege tax on the actual rental income from the business activity of leasing property. For more information regarding this subject, or general municipal law, please contact Christian Miller at *protected email* or (717) 845-1524 ext....

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Pennsylvania Expands Use of Recreational Fees by Municipalities

Posted by on Oct 15, 2014 in Uncategorized | 0 comments

Pennsylvania Expands Use of Recreational Fees by Municipalities

On September 24, 2014, Governor Corbett signed House Bill No. 1052, also known as Act 135 of 2014, into law expanding the use of recreational fees collected by municipalities.  The Act amends Section 503(11) of the Municipalities Planning Code, which previously was silent as to whether recreational fees collected in lieu of dedication of recreational land could be used for operating or maintaining park or recreational facilities outside the development on which the fees are exacted.  The amendment now clearly provides that recreational fees may be used for “providing, acquiring, operating or maintaining park or recreational facilities reasonably accessible to the development” from which the fees are exacted.  Although the use of recreational fees for operating and maintaining parks and recreational facilities outside a development was never expressly prohibited by the language of the MPC, many practitioners had interpreted the lack of express permission as a limitation to use of recreational fee money for only capital expansion of parks and recreational facilities within the development on which the fees were exacted.  The amendment now clarifies and expressly allows an expanded interpretation on the use of recreational fees. The amendment also removes the requirement that municipalities utilize recreational fee money paid to them within three (3) years from the date of payment.  Previously, the MPC allowed a developer to recoup recreational fee money if not used within this three (3) year period.  Now, the amendment only allows a developer to recoup recreational fees paid if used for a purpose other than the purposes set forth in Section 503(11).  Many municipalities were previously challenged to spend recreational fees collected within the developments from which the fees were exacted.  Many times small parks or playgrounds were constructed without a viable plan or source for funding the operation and maintenance of the facilities.  This amendment to the MPC should allow for a more regionalized approach to parks and recreation facilities and also provide a stream of income that can clearly be spent operating and maintaining the parks following construction. Please contact Christian Miller at (717) 845-1524, or *protected email*, with questions regarding this topic or any other municipal matters that relate to townships, boroughs, cities, or...

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Non-Residential Development and Recreational Land Dedication or Recreation Fees

Posted by on Oct 25, 2013 in Uncategorized | 0 comments

Non-Residential Development and Recreational Land Dedication or Recreation Fees

Sec. 503(11) of the Pennsylvania Municipalities Planning Code (“MPC”) permits municipalities to require, through its subdivision and land development ordinance, subdividers and/or land developers to dedicate land, or a recreation fee in lieu of land dedication, to the municipality for the purpose of providing recreational space.  An evolving issue surrounding these dedications or recreation fees is whether they are applicable to non-residential uses, such as commercial and industrial, since the MPC is silent on non-residential development projects concerning recreation fees. A panel of the Pennsylvania Commonwealth Court recently addressed this issue for the first time in In Re Appeal of Gibraltar Rock, Inc., where Gibraltar Rock, Inc. (“Gibraltar”) sought to development 223 acres as an industrial quarry site.  Gibraltar was required to dedicate 80 acres for recreation purposes or pay approximately $2,100,000 in lieu of dedication.   Gibraltar challenged the validity of the provision as it applied to an industrial use. The panel found the record failed to establish any reasonable relationship between the land dedication or recreation fees and the impact of the quarry.  No evidence was provided establishing a connection between employees and recreational needs, let alone 80 acres or $2,100,000 for only 18-20 employees.  For this reason, the land dedication and recreation fee was held inapplicable as to Gibraltar.  The panel limited its decision to the facts of the case and noted that a question still exists as to whether land dedication or recreation fees may be assessed on a non-residential development in future cases. If you have a question regarding subdivision and land development, or general municipal law, please contact Christian Miller at *protected email* or (717) 845-1524 ext....

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