Tennessee’s IMPROVE Act Strikes Balance in Raising Critical Road Funds

When most states raise gas taxes, it typically unleashes a storm of protest and controversy, especially when the increase hits businesses and lower income people the hardest. But when Tennessee Gov. Bill Haslam signed the state’s first gas tax hike since 1989 into law on April 24, it was celebrated as the greatest tax overhaul in the state’s history. The law does, in fact, raise taxes on gas by six cents and diesel by 10 cents over the next three years, an increase aimed at tackling a $10 billion backlog in infrastructure projects. However, the law simultaneously reduces taxes on Read More »

Tax reform. It’s all in the Details.

Tax reform would be easy if it was only about BIG ideas. Unfortunately, when it comes to taxes, the devil is in the details. Currently, details seem to be holding up the idea of making tax reform real. One of the key priorities of the Trump campaign was tax reform. Many debated whether it would — or should — be one of the top issues the administration would take on in its first one hundred days in office. Instead of tax reform, it placed its initial bets on health care reform and taking on immigration issues. And while changes to Read More »

10 Tax Breaks Contractors Often Miss

Check it out: 10 tax breaks contractors often miss. Beyond owing money to the IRS, one of the biggest causes of tax anxiety for contractors is missing out on deductions. After all, you deserve every break you have coming from Uncle Sam. Check out these often missed opportunities to lower your tax bill. Taking advantage of them could help you save thousands of dollars now and in the years ahead. 1. Home office deduction. Do you run your contracting business out of your home? You could be entitled to a deduction if you use a dedicated space to do so. Read More »

Trump Tax Moves That Could Drive Growth

First 100 Days Now that President Trump is in office, it’s time for his administration to address what it can do to help small- to mid-sized business owners grow their operations and workers to find new and better employment opportunities. The core of the new president’s voter base was made up of people within these groups and it’s time to pay-off the promises he made to them. If Trump makes good on what he campaigned on, his administration will likely push for expanding the business- and worker-friendly tax incentives and making it easier to take advantage of them. While it Read More »

Trump’s Tax Plan

Is the Trump tax plan a done deal? Or just the beginning of negotiations? Now that Donald Trump has been elected President, many people are speculating on the impact the Trump tax plan will have on personal and business taxes. Since the new President is backed by a Republican-majority Congress, many want to know if this tax plan is a done deal. Let’s take a look at how the Trump plan could impact the personal and business finances of business owners and whether it’s likely to be passed quickly “as-is” or if it could change during an extended negotiation and Read More »

The Hall Tax

What changes to the Hall income tax mean for Tennessee taxpayers The Hall income tax is a Tennessee state tax on interest and dividend income from investments. It’s the only form of personal income tax in the state. It’s been in the news lately because, after years of discussion, there’s now a plan to slowly roll back the tax until it’s eliminated in 2022. The History The Hall tax has been in effect since 1929 and was named after the state senator who sponsored it. The original tax rate was five percent and all revenue at the time went to Read More »

Section 179 Tax Deduction

Don’t miss out: The ideal tax deduction for most contracting businesses Perhaps more than any other type of business, contractors depend on equipment to get work done. That’s why the type of deduction allowed through Section 179 of the U.S. tax code is perfect for them. Section 179 lets businesses deduct the cost of certain types of property from their income taxes as an expense for the year they’re placed into service instead of requiring the costs to be capitalized and depreciated over a long period of time. The benefit of taking advantage of Section 179 for you and your Read More »

Domestic Production Activities Deduction

Take advantage of a tax deduction for contractors who do work in the U.S.A. Could your contracting business qualify for a tax deduction designed to discourage companies from outsourcing work overseas? You bet it can! The Domestic Production Activities Deduction (often referred to as the Qualified Production Activities Deduction) provides tax incentives for small and large businesses to produce most of their goods or do the majority of their work in the United States rather than sending it overseas. Contractors and construction business owners aren’t aware of this tax deduction because it’s usually associated with oil-related businesses. In fact, Form Read More »

Section 179D

How to Be more competitive bidding for government work Did you know: If you’re a contractor involved in the construction of energy-efficient buildings for government agencies, you could qualify for a very significant tax break? This tax break could be leveraged to lower your bids for government work while driving more dollars to your firm’s bottom line. Here’s what you need to know. Section 179D To encourage the development or renovation of buildings that are energy efficient, Section 179D of the tax code provides a benefit for contractors (and others) that build or renovate green buildings. It’s a tax deduction Read More »

R&D Credit Opportunities

A major tax write-off most contractors don’t know about For a contractor, it may seem unlikely that something called the Research and Development Tax Credit would apply to your business. Here’s what you need to know. The credit and its benefits The Research and Experimentation Tax Credit (also known as the R&D credit) is available to companies that spend money on research and development in the United States. What most contractors don’t realize is that the IRS has a relatively broad definition of what research and development means. Many are surprised to learn that the definition includes design build construction. Read More »
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