More than almost any other industry, construction contractors need to spend time and resources planning for their income taxes before the end of their fiscal year. Contractors must be sure to retain their financial statement strength and ratios while considering possible tax methods of accounting, projected taxable income for remaining months, tax vs. book depreciation and the calculation of alternative minimum taxes and available tax credits for the entity and the pass-through owners. It is important that all these variables be considered to ensure the most favorable financial and tax objectives are achieved.
James Lundy is a Tax partner in the Nashville, Tenn., office of Marcum LLP and is a member of the Firm’s national Construction Industry Practice group. He is one of the most respected tax consultants in the construction industry and an accomplished speaker and author on construction tax-related issues. He can be reached at email@example.com.