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Qualified Business Income Deduction Considerations for Construction and General Business

One of the most hotly discussed parts of the Tax Cuts & Jobs Act (TCJA) is the Qualified Business Income Deduction (QBID), otherwise known as the Section 199A deduction. In general, the deduction provides certain pass-through businesses (sole proprietorships, partnerships, S Corporations) with the ability to deduct 20% of their qualified business income (QBI) on …

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This One Thing Can Boost Construction Business Profits

Although it’s tempting to stick with the same trusted bookkeeper you know and love, the complexity of construction bidding and cash flow could prevent you from boosting the construction business profits you deserve. As your company grows, this one thing is worth the investment. Hire a CPA. Keep your loyal bookkeeper (especially if it’s a …

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Tax Cuts and Jobs Act Impact and Additional Effects on the Construction Industry

The Tax Cuts and Jobs Act (TCJA) is the most sweeping reform we have seen since the Tax Reform Act of 1986. Significant changes have been made to tax rates, which in most cases has been lowered with larger income brackets in place. In addition, the construction industry has seen a change in deduction options …

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Qualified Business Income Deduction – Section 199A

The Tax Cuts and Jobs Act (TCJA) adds a new deduction for noncorporate taxpayers for qualified business income. The deduction reduces taxable income, rather than adjusted gross income, and is available to taxpayers who qualify, even if they take the standard deduction. The deduction is 20% of the taxpayer’s qualified business income (QBI) from a partnership, …

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Protect Construction Job Liquidity

It used to be that contractors could hold onto customer deposits for liquidity until the end of a project, but some new contracts are requiring reimbursements back to the customer as the job progresses. Contractors need to pay close attention to their contract terms to maintain liquidity. It also helps to have processes in place …

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