MLA LINE
Lumber Industry News Express
Vol. 8, No. 25 – December 16, 2009
In this issue:
Health Care Reform - What You Should Know
IRS Issues New Guidance on NOL Expansion
ENAP is Awarded FSC and SFI Certification
Stability Balls in the Workplace?
Dealer Advisory: The 2010 optional standard
mileage rates used to calculate the deductible costs of operating an
automobile starting Jan. 1 are 50 cents per mile for business miles
driven, 16.5 cents per mile driven for medical or moving purposes,
and 14 cents per mile driven in service of charitable organizations,
the Internal Revenue Service said Dec. 3 in Revenue Procedure
2009-54.
The rates for business, medical,
and moving purposes are slightly lower than last year's, IRS said in
an accompanying news release (IR-2009-111). “The mileage
rates for 2010 reflect
generally lower transportation costs compared to a year ago,” it
said.
The rate for charitable purposes
remained unchanged.
HEALTH CARE
REFORM – WHAT YOU SHOULD KNOW
|
The U.S. Senate has begun debating the
health care reform bill. Sen. Harry Reid (D-NV) and many
Senate Democrats are pushing to have the bill passed out of the
Senate chamber before Christmas, though any bill that passes the
Senate will have to be reconciled with the previous House-passed
bill (HR 3962). We are told that President Obama would
like the bill on his desk to sign into law before his State of
the Union Address, which will more than likely be held towards
the end of January.
Please click
here to read a side-by-side comparison of the recently
passed House health care bill and the Senate health
care bill currently being debated.
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|
While we applaud Congress for attempting
to pass genuine health care reform, the current Senate bill is a
step in the wrong direction. It would create a
government-run health plan, force employers to offer health
insurance or pay big fines, tax working Americans, and add
hundreds of billions of dollars to the budget. The play-or-pay
mandate is particularly troubling as it will force employers to
offer government-approved health insurance to employees,
regardless of whether the business can afford it. It could
lead some businesses to lay off workers to avoid closing their
doors. This provision will depress economic activity and
exacerbate an already high unemployment rate. Please click
here for more information on the play-or-pay mandate.
NLBMDA will continue to work
constructively with members on both sides of the aisle to
ensure that health care reform proposals ultimately help, not
hurt, both employers and employees. NLBMDA is also working
with the Small Business Coalition for Affordable Health Care and
Start Over Coalition. Please click
here to view the most recent health care coalition letter
NLBMDA signed onto.
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|
Senate Bill Top-Line
Facts:
More top-line facts can be found by
clicking
here. |
IRS Issues New
Guidance on NOL Expansion
The IRS has issued new guidance on the expansion of the Net Operating Loss Carryback provision enacted last month by Congress. The expansion allows taxpayers to elect a 3, 4 or 5-year net operating loss (NOL) carryback instead of the usual w-year carryback.
The election applies to an applicable NOL, which is an NOL for a taxable year ending after December 31, 2007, and beginning before January 1, 2010. The revenue procedure tells taxpayers the time and manner for making the election if the taxpayer (1) has not claimed a deduction for an applicable NOL; (2) previously claimed a deduction for an applicable NOL; or (3) previously filed an election to forgo the NOL carryback. Text of Rev. Proc. 2009-52 is available at:
http://www.irs.gov/pub/irs-drop/rp-09-52.pdf
Here are some considerations:
-
If you have a NOL generated in 2008 and did not elect to forgo the carryback and have not already filed a carryback for the previous two years, then it would be advantageous to see about carrying the NOL back 3, 4 or 5 years. It depends on the tax paid in those years.
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The ruling does not affect the carryback rules for the state returns so you might be able to carry back the NOL for federal purposes 3, 4, or 5 years but, depending on the state where you file, you might be able to carryback for only two years or maybe not at all.
Members would be well advised to discuss this option with their CPAs prior to filing their tax returns.
Source: NLBMDA e-Update, November 30,
2009
2010 LEG-CON –
SAVE THE DATE
Mark your calendars! Join the National Lumber & Building Material
Dealers Association (NLBMDA), the North American Building Material
Distribution Association (NBMDA) and the Window and Door Manufacturers
Association (WDMA) for the
2010 Spring Meeting and Legislative
Conference, scheduled for March 15-17, 2010 at the
Marriott Washington in Washington, D.C. In addition to individual
association committee and board meetings, the conference will include
joint networking functions and sessions with key congressmen and federal
agency officials on topics impacting the industry and Washington. Noted
political analyst and handicapper Charlie Cook, editor of the Cook
Political Report and NBC News contributor, will be a featured speaker.
Meetings will be set up between conference attendees and their
congressmen and key federal agency officials to discuss industry policy
priorities in Washington. It will culminate with a reception for members
of Congress and their staffs on Capitol Hill.
Further, the conference will provide a wealth of business networking
opportunities across the supply chain.
Stay tuned to
www.2010LegCon.org
as housing and registration information will be available soon!
ENAP is awarded FSC
and SFI Certification
(New Windsor, NY, December 1, 2009) ENAP, Inc. has successfully completed their FSC (Forest Stewardship Council) and SFI (Sustainable Forestry Initiative) certification audit and is now chain of custody compliant.
ENAP’s FSC certification is effective as of November 11, 2009, and SFI certification is effective as of October 29, 2009. ENAP, Inc. has earned their certification through Scientific Certification Systems in Emeryville, CA who is accredited by the FSC to certify companies to their international standards. ENAP, Inc. now meets strict tracking requirements to ensure the products they sell as FSC-/SFI-certified come from well managed forests.
Jan. 7-8 – MLDAC Winter
Meeting – Columbia, Mo.
Jan. 14-15 – KYL Dealer Winter
Meeting – Pratt, Kan.
March 15-17 – NLBMDA
Legislative Conference, Washington, D.C.
Call the MLA Office – 800-747-6529 – for
additional information or email:
mail@themla.com
LUMBER NEWS –
QUICK GLIMPSES
Dealers Modestly Optimistic About
2010,
ProSales
Survey Finds…
Just under half of America’s LBM dealers responding
to a ProSales
survey predict sales will increase next year and another quarter think
they’ll hold steady, poll results released today show. Those 2010
expectations follow a year in which roughly 60% of the respondents said
sales were down at least 20%, close to 43% said profit margins had shrunk
and just over half expected their location would post an operating loss.
Participants will receive via e-mail a full report of the results, including
participants’ written comments. Check
www.prosalesonline.com later this week for a less detailed summary of
the findings.
More
Source: ProSales Business Update,
December 2, 2009
Large Builders Break Off from NAHB… Sixteen of the nation's largest builders have decided to establish a new trade association separate from the National Association of Home Builders, according to Builder Magazine. Called the Leading Builders of America, the new organization said it is “working to ensure that the housing sector continues the process of stabilization and recovery. The group also plans to be active on energy efficiency legislation and other issues of importance to home buyers and the home building industry.” Several members of the new organization will retain memberships in NAHB. However, the establishment of the new group indicates the level of friction between the NAHB, whose membership is primarily composed of smaller builders, and the large public builders, who often have a competitive advantage due to their size and access to capital. CEOs of the biggest builders found themselves at odds with NAHB over a tax code provision, which reignited a long-standing rift between them and NAHB officials, according to news reports.
Source: Random Lengths, December 16, 2009
Housing Starts Regain Some Ground in November… Nationwide housing production rose 8.9 percent to a seasonally adjusted annual rate of 574,000 units in November, according to figures released by the U.S. Commerce Department today. The gain represented a partial bounce-back from an exceptionally slow month for housing activity in October, and was largely attributed to a big increase on the multifamily side. Read entire article.
Source: National Association of Home
Builders, December 16, 2009
First-Time Home Buyer Tax Credit Does its Work… Single-family housing starts have generally been rising since early this year. They hit a low of 357,000 in January and February of this year (seasonally adjusted, at an annual rate), their lowest level since current records of housing starts began in 1959. There was one stumble when starts fell in August from July, yet they still averaged almost 500,000 at an annual rate in the third quarter. But in October, single-family housing starts fell to 476,000 from September’s 511,000.
The drop-off appeared to be due to the looming expiration of the first-time home buyer tax credit, which was subsequently extended and expanded. It simply was impossible for a builder to start a home in October and deliver it by the end of November in time to qualify for the tax credit. Read more.
Source: NAHB’s Eye on the Economy, December
10, 2009
Estate Tax in Flux
as Congress Plots Session End Game; “Home Star” and Card Check Pending
in January…
With the House set to adjourn at the end of the week, and the Senate
consumed with debate on the health care overhaul, Congressional leaders are
struggling to wrap up fiscal loose ends. While an omnibus spending bill was
cleared by the Senate over the weekend, Democratic leaders are working to
attach various measures to the final spending bill, defense appropriations.
On the list includes a needed increase to the debt
limit; so called "PAY-GO" rules the House Blue Dogs have been seeking to
require any new spending to be offset with revenue raisers; temporary
extensions of unemployment assistance and COBRA subsidies; and a possible
one-year extension of the 2009 estate tax rates. While the House passed a
permanent estate tax measure earlier this month (H.R. 4154), the Senate
appears unlikely to address the issue before January 1. Under current law,
the estate tax will be repealed on January 1, only to return in 2011 at an
even lower threshold and higher taxable rate. NLBMDA joined the Family
Business Estate Tax Coalition (FBETC) to send a letter to Senate leaders
urging them to enact an estate tax solution that improves upon the
House-passed measure, with at least a $5 million exemption and no more than
a 35% rate. To urge your Senators to support meaningful estate tax relief,
please click
here.
Action on the President's job creation proposals, including the Home Star program that could provide new business opportunities for building material dealers, is expected to be deferred until Congress returns in January. We also expect labor officials to continue to press for a Senate vote on card check legislation early in the new year, as soon as debate on health care is concluded. Dealers are encouraged to communicate with their legislators over the holiday break to remind them of the importance of rejecting job-killing card check legislation or any so-called compromise. Visit BuildtheVote.org for talking points and a sample email message.
Source: NLBMDA eUpdate, December 14, 2009
Source: LBM Daily, December 16,
2009
Thomas W. “Tom” Doty, 61, passed away unexpectedly on December 3, 2009. He moved to Kansas City in 1985 and was last employed as warehouse manager for Warehouse 1 in Kansas City for about 10 years. A memorial has been established to the Valley Hope Treatment Center, with the funeral home in charge. (Griffiths-Hovendick Chapel in Beatrice, Neb., handled the arrangements.) Online sympathy cards may be left and his video tribute may be viewed at www.griffithshovendick.com.
Stability Balls in the Workplace?
Why you should keep your office chair
Sitting puts more pressure on your spinal column and lower back than standing – and bad posture adds to the strain. This may explain why millions of office workers around the country experience back pain. Would replacing your office chair with a stability ball help straighten posture and strengthen your core muscles as you work?
Experts say, No. When you tire, no matter what you sit on, you’re likely to slump. A chair has a backrest and arms for support, whereas a stability ball has neither – so a ball could strain your back and cause discomfort. In addition, studies have shown that sitting on a stability ball all day does not provide a significant core workout.
Best advice: Make sure your office chair fits you properly and supports your lower back. Always use good posture and do simple stretches at your desk throughout the day. Get off your chair periodically: Take a short walk or stand while talking on the phone.
This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.
MLA is proud to endorse….
“Good enough is never good enough.”
- A. B. Guthrie
“God bless us, every one!”
- Tiny Tim in
A Christmas Carol by Charles
Dickens
We're here to help. Until next time....
MLA Staff
816-561-5323
800-747-6529
The opinions, views, and interpretations expressed in this publication do not constitute legal advice. Questions and concerns regarding your company’s compliance with Federal or State regulations should be directed to the appropriate Federal or State agency.