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The Contractor’s Toolbox for Year-End Tax Planning

Sikich

Dec 16 2014

2 min read

As the year comes to a close, it’s time to think about year-end tax planning. Construction companies continue to face unique challenges in today’s marketplace, such as rising construction costs, bank financing and keeping up with the strong demand with a shortage of skilled workers, which is why it’s critical to make the right moves now to ensure your company’s future financial strength.

Use this checklist for contractors as you work on your year-end tax planning:
Review your current tax structure
Determine your contractor status (employee vs. independent)
Define your accounting method (accrual or cash)
Create a strategic plan and project your income for 2015
Know your tax rate
Consider your financial impact on bank loans
Defer your income
Tax advantage of tax breaks before they expire, such as:
- Equipment and machinery purchases
- Bonus depreciation
- Energy-efficient processes/projects
- Research & experimentation tax credit (R&D)
- Retirement contribution
- Workforce development
Plan for benefits, i.e. the Affordable Care Act and Medicare
Watch for year-end changes
Review and review some more, then submit

There are numerous ways to be strategic with your year-end tax planning. Your tax advisor can help you develop the best long-term strategy to optimize your construction company’s overall savings.

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About the Author

Sikich

From accounting, tax and assurance to technology and advisory, Sikich offers a unique formula of professional services to businesses and organizations across the country. By pairing subject matter expertise with the real-world experience gained as entrepreneurial leaders, we provide clarity to your complex challenges and solutions to strengthen every dimension of your business.