2. Thank You August Breakfast Sponsor

4. Thank you 2013 Sponsors! $15,000 Sponsors Premier Sponsor

5.  GRT savings on Government and Not for Profit Construction  Construction Regulations and GRT  Expiring Federal Tax Incentives  Bonus Depreciation Rules  Obamacare and small business  Carried Interest Update

6. 6 New Mexico Gross Receipts Tax Opportunities and Planning Presented by: Duwayne Sibley, Senior Manager John C. Tysseling, Director

7. 7 The material appearing in this presentation is for informational purposes only and is not legal or accounting advice. Communication of this information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials may have been prepared by professionals, they should not be used as a substitute for professional services. If legal, accounting, or other professional advice is required, the services of a professional should be sought.

8. 8 A New Mexico State cost segregation study examines qualifying construction projects by not- for-profit, governmental, and industrial revenue bond entities. It then provides the general contractor with a New Mexico Gross Receipts Tax (NM GRT) savings or a refund on tangible personal property, in accordance with New Mexico Statute § 7-9-54. Historically NM has not allowed governments or non profits to buy construction tangibles separately without tax.  Regulation 3.2.1.11.K (the Building Reg.) changed that.  3.2.1.11.K.(2) A "building" includes the structural components integral to the building and necessary to the operation or maintenance of the building but does not include equipment, systems or components installed to perform, support or serve the activities and processes conducted in the building and which are classified for depreciation purposes as 3-year, 5-year, 7-year, 10-year or 15-year property by Section 168 of the Internal Revenue Code… New Construction Projects  Study should be initiated as soon as possible in construction process  Allows for monthly savings to be applied on a go forward basis as project is being constructed. Past Construction  Statute of limitation is 3 years  Must file a refund with New Mexico Tax & Revenue Department with Amended CRS-1s. Example Project:  $12 Million Building, 7% NMGRT Rate  15% Qualifying Property  $126,000 NMGRT Savings Opportunities for Savings on Government and Not-for-Profit Construction

9. 9 CONSTRUCTION-RELATED ANTI-PYRAMIDING NM GROSS RECEIPTS TAX PROVISIONS Construction –Related Services: directly contracted or billed design, architecture, drafting, surveying, engineering, environmental and structural testing, security, sanitation and services required to comply with governmental construction‐related regulations; but excludes general business services (e.g., legal or accounting), equipment maintenance and real estate sales commissions. If a manufacturer of equipment installs the equipment on a construction project such that the equipment becomes “an ingredient or component part“ of the project, then the manufacturer (or its contracted installer) is selling a construction service that may be deducted from gross receipts. Construction –Related Services: directly contracted or billed design, architecture, drafting, surveying, engineering, environmental and structural testing, security, sanitation and services required to comply with governmental construction‐related regulations; but excludes general business services (e.g., legal or accounting), equipment maintenance and real estate sales commissions. If a manufacturer of equipment installs the equipment on a construction project such that the equipment becomes “an ingredient or component part“ of the project, then the manufacturer (or its contracted installer) is selling a construction service that may be deducted from gross receipts. HB-184 (2012 Legislature) enacts §9-2-52 et seq. (NMSA 1978), and TRD Regs. 3.2.210 NMCA implements provisions to avoid pyramiding of GRT. NTTC Type-6 may be executed by a construction contractor: 1) For the purchase of construction materials that will become ingredients or components of a construction project that is either subject to GRT upon completion; or 2) the purchase of construction or construction-related services that are directly contracted for or billed to a construction project which are either subject to GRT upon completion or upon the sale of the real property upon which the project is constructed. HB-184 (2012 Legislature) enacts §9-2-52 et seq. (NMSA 1978), and TRD Regs. 3.2.210 NMCA implements provisions to avoid pyramiding of GRT. NTTC Type-6 may be executed by a construction contractor: 1) For the purchase of construction materials that will become ingredients or components of a construction project that is either subject to GRT upon completion; or 2) the purchase of construction or construction-related services that are directly contracted for or billed to a construction project which are either subject to GRT upon completion or upon the sale of the real property upon which the project is constructed.

10. 10 CONTACT US Duwayne Sibley 505-878-7294 Duwayne.Sibley@mossadams.com John C. Tysseling 505-837-7665 John.Tysseling@mossadams.com Tax planning offered by Moss Adams LLP. Investment advisory and personal financial planning offered by Moss Adams Wealth Advisors LLC. Insurance management and consulting offered by Moss Adams Securities & Insurance LLC.

11. ©2013 CliftonLarsonAllen LLP CLAconnect.com See CLA PowerPoint User Guide for instructions to insert an image or change the icon on the business card. Find it at the bottom of the myCLA / Firm Resources / Materials / Templates page. See CLA PowerPoint User Guide for instructions to insert an image or change the icon on the business card. Find it at the bottom of the myCLA / Firm Resources / Materials / Templates page. Expiring tax incentives and bonus depreciation August 8, 2013 Presented By David Leith, Partner

12. ©2013 CliftonLarsonAllen LLP Expiring federal tax incentives in 2013 that may impact your business decisions Business Property Incentives –Section 179 increased limit –50% Bonus depreciation –Qualified LHI 15 year life S corporation BIG period Energy efficient property incentives –Section 179D (likely to be extended) –Section 45L Individual Expiring provisions of note 12

13. ©2013 CliftonLarsonAllen LLP Taking full advantage of the bonus depreciation rules 50% Bonus depreciation set to expire, generally, 12/31/13 Qualified LHI application Utilize 179 deduction first, then bonus Interplay with Repair regulations Cost segregation as a means to maximize bonus –Bldg/improvements must be placed in service by 12/31/13 –5,7,15 yr property generally eligible for bonus Watch State conformity to bonus 13

14. ©2013 CliftonLarsonAllen LLP 14 ©2013 CliftonLarsonAllen LLP CLAconnect.com twitter.com/ CLA_CPAs facebook.com/ cliftonlarsonallen linkedin.com/company/ cliftonlarsonallen Dave Leith, CPA Partner, Construction and Real Estate David.leith@cliftonlarsonallen.com 505-222-3506 Marcus Mims, CPA Partner, State and Local Tax Marcus.mims@cliftonlarsonallen.com 505-222-3508 14

15. Carried interest update and Obamacare REDW, LLC CPAs | Business & Financial Advisors

16. Affordable Care Act (“ACA”) Where to get information: – IRS.gov (new home page) – Business.usa.gov/healthcare (interactive Q&A) – HealthCare.gov (US Department of Health & Human Services website) Key Tax Points – Medical Loss Ratio (“MLR”) - 2012 Insurance company rebate – W-2 Reporting – 2012, but transitional relief available Box 12, Code DD – Net Investment Income Tax – 3.8% - 2013 – Additional Medicare Tax - 2013 0.9%; $250,000 MFJ; $125,000 MFS; $200,000 all others – Small Business Health Care Tax Credit - 2012 Not refundable for businesses; Subject to AMT – Medical Devise Excise Tax - 2013 2.3% on manufacturers for certain pieces of equipment – Health Insurance Premium Tax Credit – 2014 Refundable credit for individuals/families when health insurance is purchased through an exchange. – Individual and Employer Shared Responsibility Payment – 2014 and 2015, respectively Penalty if no health insurance or no exemption. – Patient-Centered Outcomes Research Institute Fee (“PCORI”) – July 31, 2013 Trust Fund funded by fees from certain health policies and sponsors of certain self-funded plans. – Workplace Wellness Programs (reward system) – 2014

17. “Obamacare” Advice from this panel:

18. Carried Interest Update What is carried interest, also referred to as “a promote”? http://www.youtube.com/watch?v=P2n_zpoM1GE# http://www.youtube.com/watch?v=P2n_zpoM1GE# “Usually my video clips are just adding color, but I really recommend that you check this one out to get the industry perspective. Overall I think the response is a little disingenuous. It is true that there are a lot of people who build businesses with sweat equity and cash out with capital gains treatment after some liquidity event. For a lot of those people, it is a once in a lifetime event. People who do it year in and year out are in a somewhat different economic situation even if the same tax principles are at work.” Forbes.Com; Peter J. Reilly Why is it important to NAIOP members? “…the proposed partnership tax law change would disproportionately impact the real estate industry since real estate partnerships comprise over 46 percent of all partnerships and many use a carried interest component in structuring development ventures.” NAIOP website Prospect of future legislation – How to plan for possible changes to the tax code

19. Bobbi Kay Nelson Senior Manager, State and Local Tax REDW, LLC bnelson@REDW.com 505-998-3414