The Tax Cut and Jobs Act (TCJA) signed into law in late 2017 made some of the most significant tax regulation changes in decades and created many new planning opportunities for contractors. Changing entity types, accounting methods, new deductions for qualified businesses, new depreciation alternatives, and new tax incentives for qualified investments are just some of the provisions in the TCJA that will require careful analysis and proactive planning for CPAs and their contractor clients.
On March 27, 2020, The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) was passed which includes many tax provisions that are intended to put cash flow in the hands of individuals and businesses. On December 27, 2020, the Consolidated Appropriations Act, 2021 was passed impacting specific tax regulations.
The CICPAC Tax Thought Leadership Committee has compiled an updated summary of those changes potentially impacting our construction clients for consideration for 2021 and in the future.
These potential changes and considerations are related to:
- Construction accounting methods for large contractors and small contractors
- Section 199A and benefits
- Other opportunities and considerations under TCJA such as excess business loans, choosing between S Corp versus C Corp, NOL Changes, Bonus Depreciation Changes, Section 179 Changes, tax planning tips,
- Opportunity Zones
To read the full whitepaper, download it here.
If you have questions about the information outlined above or need assistance with a construction tax or accounting issue, Calvetti Ferguson can help. For additional information, click here to contact us. We look forward to speaking with you soon.