Construction & Real Estate

5 Tips for Avoiding Profit Fade

Profit fade can be a serious problem for construction companies. It’s not only a red flag for sureties and lenders, but also a harbinger of doom for the overall financial performance of the business. As the name suggests, profit fade simply means a decline in expected gross profits over the course of a project. There…

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Could You Qualify for an Energy-Efficient Tax Deduction?

Section 179D of the tax code allows a deduction for the cost of energy-efficient improvements to new or existing commercial buildings, as well as certain residential rental buildings. Originally a temporary incentive that was renewed several times, the tax break became permanent under legislation passed in late 2020. The legislation also called for the maximum…

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Sizing up a Public Infrastructure Project

Given all that’s going on in the nation and the world, the federal infrastructure bill passed toward the end of last year might seem to have gotten lost in the shuffle. But, indeed, the Infrastructure Investment and Jobs Act was signed into law on November 15, 2021, and it represents a veritable mountain of opportunities…

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Sales and Use Taxes: An Ongoing Challenge

We’re fast approaching the fourth anniversary of the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair. That makes now a good time for construction business owners to review their sales and use tax obligations. Wayfair explained In Wayfair, the Court ruled that a state may require out-of-state sellers to collect and remit sales…

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Pump up Tax Savings with the Fuel Tax Credit

Construction companies that wish to reduce their tax bills or increase their refunds shouldn’t overlook the fuel tax credit. The federal fuel tax, which is used to fund highway and road maintenance programs, is collected from buyers of gasoline, undyed diesel fuel and undyed kerosene. (Dyed fuels, which are limited to off-road use, are exempt…

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Combating the Skilled Labor Shortage

Even before COVID-19, construction companies were facing a shortage of skilled workers. The pandemic has only exacerbated the problem for contractors and many other types of businesses for that matter. According to the 2021 Construction Outlook National Survey by the Associated General Contractors of America (AGC), 54% of contractors are having a hard time filling…

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Why Contractors Should Consider Mediation

When a construction dispute arises, among the first thoughts that may come to mind is, “Oh no, is this going to wind up in court?” Sometimes that eventuality is unavoidable, but there’s often a much easier and even productive way to resolve the matter — mediation. Developing strategies In mediation, a neutral mediator facilitates a…

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Construction Accounting: 5 Ways to Optimize Your Financial Reporting

In today’s challenging environment, a construction company’s relationships with its lenders and surety are more important than ever. One way to enhance these relationships is to optimize your financial reporting to ensure it provides the information that lenders and sureties need to feel comfortable extending credit and bonding to your business. Here are five ways…

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COVID Legislation – 2021 Construction Tax Planning Opportunities

On March 27, 2020 the President signed The Coronavirus, Aid, Relief and Economic Security Act (CARES Act). The CARES Act includes many tax provisions that are intended to put cash flow in the hands of individuals and businesses. Additional coronavirus relief related legislation has been passed and is included in this whitepaper. The CICPAC Tax Thought…

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Mobile Workforce: Finding a Reimbursement Plan that Works for You

Construction industries that maintain mobile workforces often have employees work in various locations which causes them to incur out-of-pocket business costs. You, as an employer, may reimburse the employee for these costs using either an accountable or non-accountable plan. An accountable (reimbursement) plan meets the following criteria: The purpose is to reimburse employees for allowable…

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