The Impact of IRC Sec 460 on Contractors’ Cash Flow Management

At nearly 75,000 pages the Internal Revenue Code is the bane of most industries, but none more so than the construction industry which has a whole section of the code targeting its accounting procedures. IRC Section 460, created in 1986, is as complex a section as there is, especially where it concerns the treatment of income from long-term contracts. However, for construction contractors who take the time to understand the intricacies Sec. 460, there are many tax planning opportunities to be found which can substantially improve their cash flow situation. IRC Section 460 Treatment of Long-Term Contracts Sec. 460 establishes Read More »

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 »
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