The tax landscape for construction companies is constantly changing due to recent legislation like the Inflation Reduction Act, the Tax Cuts and Jobs Act (TCJA), and the CARES Act. This ongoing changes means proactive tax planning is essential to minimize tax liabilities and maximize profits going into the new year.
The CICPAC Tax Thought Leadership Committee has compiled a checklist to help construction companies address these complex tax issues. This checklist highlights key areas for consideration in 2024 tax planning and beyond, including:
- Expiring provisions: Get a heads-up on provisions like the doubled estate tax exemption set to expire in 2026.
- Capitalization of research expenses: Understand the new rules for research and development costs, including how they impact your work-in-progress schedule.
- Business interest deduction limitation: Learn how recent changes to calculating Adjusted Taxable Income (ATI) may affect your business interest deduction.
- Depreciation: Stay informed on the phase-down of bonus depreciation and explore alternative options like Section 179.
- IRS interest rates: Be aware of how increased interest rates impact underpayments and estate planning strategies.
- Review retirement plan options: Take advantage of recent changes to retirement plan rules, such as increased RMD age and catch-up contribution options.
- Mobile workforce reminders: Ensure compliance with updated mileage rates, per diem rates, and business meal deductibility.
- Pass-Through Entity (PTE) tax environment: Understand the potential impact of state-level PTE taxes on your tax liability.
- And more!
Download the checklist to gain valuable insights and learn how to create a proactive tax strategy for your construction business this year and beyond.
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