Tag: Construction

Businesses structured as partnerships, S corporations or limited liability companies generally aren't subject to the federal corporate income tax. This is because tax liability "passes through" such entities to each business partner's individual level. If Read More

Internal Revenue Code Section 179 potentially allows significant first-year depreciation deductions when your business places qualifying assets into service. You generally want to maximize current year depreciation write-offs for newly acquired business assets. However, the Read More

When the pandemic hit in 2020, the Employee Retention Tax Credit (ERTC) was introduced under the CARES Act. Federal government officials and lawmakers created the credit to help employers keep employees on their payrolls as Read More

A gradual decline in expected gross profits over the course of a project is known as "profit fade." It not only undermines the financial performance of construction companies, but also may raise red flags with Read More

In June 2024, the IRS released final regulations addressing the prevailing wage and apprenticeship (PWA) requirements for increased clean energy tax deduction or credit amounts. These tax breaks were made available under the Inflation Reduction Read More

Construction companies have always faced challenges when it comes to cash flow. The difficulty largely springs from the often-lengthy gaps between winning projects, doing the work and receiving payments. As a result, it's critical for Read More

Creating a comprehensive and actionable succession plan is rarely easy for business owners. It's certainly a challenge for most contractors, who may find it difficult to step away from the day-to-day hustle and bustle of Read More

The Tax Cuts and Jobs Act (TCJA) was signed into law in 2017 and generally took effect at the start of 2018. It brought sweeping changes to various aspects of tax law for both individuals Read More

For construction companies, accounting isn't as simple as just balancing the books every month. Contractors tend to have multiple projects underway at various stages of completion and, ideally, more in the pipeline. Your accounting practices Read More

For construction businesses, financial management is notoriously complex. Contractors have to deal with the ebbs and flows of their respective markets, project-based pricing and collections, rising operating costs, and various other factors — not the Read More