If you own or co-own a construction busi­ness, it’s likely the most valuable asset in your possession. But the question is and will remain throughout your tenure as an owner: Just how valuable is it? The answer is variable because, as you’re likely aware, the value of a company rises and falls depending on a…

Remember the Consolidated Appropriations Act (CAA)? It was signed into law on December 27, 2020, providing relief to individuals and businesses affected by the COVID-19 pandemic. In addition to reducing 2020 tax bills, the act provides several tax benefits for 2021, so be sure to keep it in mind as the year rolls along. Here…

President Biden signed the COVID-19 relief bill, American Rescue Plan Act of 2021, into law. The legislation will have major impacts on individuals and businesses. Below is a summary of the ARPA provisions summarized in the following sections: Individual Provisions and Business Provisions. Individual Provisions Unemployment Received in 2020 Partially Excluded from Income for Some Taxpayers…

What’s the potential tax trap with the Qualified Improvement Property (QIP), read on to find out. In the current economic environment, cash flow is a precious commodity. Construction companies need to make the most of depreciation deductions that can reduce their tax bills. Fortunately, several provisions of the CARES Act can help you do just…

Case Study accompanies blog on “Control the timing of income and deductions to your tax advantage.” When he filed his 2019 tax return, he was surprised to find that he could not longer deduct all of his state and local income and property taxes. Why? Last year, Justin earned a promotion along with a significant…

The following information accompanies the “Control the timing of income and deductions to your tax advantage” blog post. To help the self-employed — and employers — during the COVID-19 crisis, the CARES Act allows the payment of the employer share (6.2% of wages) of the Social Security payroll tax to be deferred. Taxpayers can pay…

CASE STUDY: Stock-Based Compensation This case study accompanies the blog, “Smart Tax Planning for your Executive Compensation Package is Critical.” Mario was about to receive some stock-based compensation from his employer, so he contacted his tax advisor to find out what the tax consequences would be. His advisor explained that the tax treatment would depend…

This information accompanies the recent blog, “Uncertainty further complicates tax planning for incentives.” Type of Gain / Rate* * In addition, the 3.8% net investment income tax (NIIT) applies to net investment income to the extent that modified adjusted gross income (MAGI) exceeds $200,000 (singles and heads of households), $250,000 (married filing jointly) or $125,000…

Tax treatment for investments varies dramatically based on factors such as type of investment, type of income it produces, how long you’ve held it and whether any special limitations or breaks apply. On top of that, economic uncertainty has made tax planning for investments especially challenging this year. And there are many additional factors to…

Compensation may take several forms, including salary, fringe benefits and bonuses. If you’re an executive or other key employee, you might receive stock-based compensation, such as restricted stock, restricted stock units (RSUs) or stock options (either incentive or nonqualified). Nonqualified deferred compensation (NQDC) may also be included in your exec comp package. The tax consequences…