Many construction company owners might assume that a tax credit related to research and development is out of their reach. Au contraire — contractors can and have claimed the research credit for improving construction techniques or developing industry – related software. Here’s a refresher on this potentially valuable tax break. Making the grade Essentially, the…

The House of Representatives passed H.R. 5376, the Build Back Better Act, by a vote of 220–213. The bill encompasses a wide range of budget and spending provisions and has been the focus of negotiations for the past several weeks. The vote on the bill was held after the Congressional Budget Office (CBO) released its…

President Biden signed the Infrastructure Investment & Jobs Act on November 15, 2021. Key tax provisions include the retroactive termination of the employee retention credit and information regarding reporting cryptocurrency. These and many more provisions are covered below. INDIVIDUAL PROVISIONS Automatic Extension of Certain Deadlines for Taxpayers Affected by Disasters A mandatory (automatic) 60-day deadline…

If your construction business has struggled because of the COVID-19 pandemic, you may have received a forgivable Paycheck Protection Program (PPP) loan through the Small Business Administration (SBA). But if those funds have run out — or if you have expenses that a PPP loan doesn’t cover — you may want to explore other funding…

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…

For any business owner, contractors included, putting together a succession plan may seem like an overwhelming task. Often, among the most difficult things to conceptualize is precisely how to connect — and beneficially integrate — your succession plan with your estate plan. Here are a few ideas to consider. Sell your shares By selling your…

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…