2023 Mid-year Contractor Tax Planning
Bracing for the Future with Essential Tax Planning for Contractors
Contractors are navigating a constantly changing tax landscape due to recent government acts including the Inflation Reduction Act, the Tax Cut and Jobs Act, and the CARES Act. While these legislations are designed with the broader goal of fortifying the economy, they bring to light intricate tax nuances specific to the construction sector.
For contractors, these changes aren’t just numbers on paper. They hold tangible implications for day-to-day operations, long-term financial strategies and the very viability of projects in the pipeline. The shifting terrain demands not just awareness but agility – the ability to adapt and optimize financial plans in real time. But with change comes opportunity. While the revised tax rules present their share of challenges, they also unveil potential avenues for optimization and growth, such as capitalization strategies and leveraging new tax credits.
The CICPAC Tax Thought Leadership Committee, with its finger on the pulse of these changes, offers a resource for the industry. Here’s what’s included in the 2023 Mid-year Contractor Tax Planning Guide:
- Capitalization of Research Expenses (R&E)
- Business Interest Deduction Limitation
- IRS Interest Rates and Underpayment
- IRS “Dirty Dozen” Tax Scams
- Mobile Workforce Tax Implications
- Depreciation Rules
- Retirement Plan Options
- Pass-Through Entity (PTE) Tax Landscape
- Contractor-Specific Accounting Methods
- Excess Business Loss & Related Areas
- Employee Retention Tax Credit
Please contact Mark Barnett, Adams Brown’s construction accountant leader for more information.