Year End Tax Strategy for the Contractor We will begin shortly, please dial into the conference line: 1-877-380-7755 x8702...
Presenters <ul><li>Steve Ball, CPA, CVA, CCIFP </li></ul>Scott Handwerger, CPA
Accounting Methods <ul><li>Using the right long-term accounting method can defer contract profits and the associated taxes...
American Recovery and Reinvestment Act of 2009 Small Business Jobs Act of 2010
Cash vs. Accrual Methods <ul><li>Many small businesses report income on the accrual method, which generally accelerates in...
Expensing Assets vs. Depreciation <ul><li>Create a fixed asset purchase strategy that will minimize taxes.  </li></ul><ul>...
Cost Segregation Studies For Real Property <ul><li>This provides for faster write-off of buildings used in a business by s...
Production Deduction <ul><li>Certain contractors are allowed a deduction based on their profits.  Careful planning can max...
Deduction Of Prepaid Expenses That Meet Certain Criteria <ul><li>This came about because of a law change regarding the ded...
Payroll Taxes <ul><li>Taking distributions versus drawing a salary for the owners of the business can save payroll taxes. ...
Contributions To Qualified Retirement Plans <ul><li>The right retirement plan can reduce current taxes and create a comfor...
ESOPs For Retiring Owners <ul><li>Employee Stock Ownership Plans are gaining popularity as a tax-advantaged exit strategy ...
Worker, Homeownership, and Business Act of 2009 <ul><li>Includes 5-year NOL carry back for losses in 2009, irrespective of...
IRA Rollovers <ul><li>No AGI limit on traditional IRA rollovers to Roth IRA in 2010.  Tax can be deferred until 2011 and 2...
Beware Of The Alternative Minimum Tax <ul><li>Always consider the impact of the AMT in tax planning. </li></ul>
Questions? Bill Reading wreading@gma-cpa.com  |  410.900.1385 |  www.gma-consult.com www.facebook.com/GrossMendelsohn www....
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Year End Tax Planning Tips for Contractors

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Steve Ball and Scott Handwerger of Gross Mendelsohn's Construction Consulting Group discuss how new tax legislation could impact your construction business. Learn valuable ways to maximize your tax savings for 2010.

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Year End Tax Planning Tips for Contractors

  1. 1. Year End Tax Strategy for the Contractor We will begin shortly, please dial into the conference line: 1-877-380-7755 x8702678
  2. 2. Presenters <ul><li>Steve Ball, CPA, CVA, CCIFP </li></ul>Scott Handwerger, CPA
  3. 3. Accounting Methods <ul><li>Using the right long-term accounting method can defer contract profits and the associated taxes. </li></ul><ul><li>Small Business Jobs Act of 2010 </li></ul><ul><li>Small Contractor Exemption </li></ul>
  4. 4. American Recovery and Reinvestment Act of 2009 Small Business Jobs Act of 2010
  5. 5. Cash vs. Accrual Methods <ul><li>Many small businesses report income on the accrual method, which generally accelerates income, when they could use the cash method of reporting for tax purposes. </li></ul>
  6. 6. Expensing Assets vs. Depreciation <ul><li>Create a fixed asset purchase strategy that will minimize taxes. </li></ul><ul><li>50% bonus depreciation extended into 2010. </li></ul><ul><li>Bonus depreciation for 2011 will likely be increased to 100%. </li></ul>
  7. 7. Cost Segregation Studies For Real Property <ul><li>This provides for faster write-off of buildings used in a business by segregating the cost into smaller components, and using a shorter tax depreciation life for items specific to the use of the building and not merely a structural component. </li></ul>
  8. 8. Production Deduction <ul><li>Certain contractors are allowed a deduction based on their profits. Careful planning can maximize this tax benefit. </li></ul>
  9. 9. Deduction Of Prepaid Expenses That Meet Certain Criteria <ul><li>This came about because of a law change regarding the deductibility of assets that have a useful life of one year or less. </li></ul>
  10. 10. Payroll Taxes <ul><li>Taking distributions versus drawing a salary for the owners of the business can save payroll taxes. </li></ul>
  11. 11. Contributions To Qualified Retirement Plans <ul><li>The right retirement plan can reduce current taxes and create a comfortable retirement for the owner. </li></ul>
  12. 12. ESOPs For Retiring Owners <ul><li>Employee Stock Ownership Plans are gaining popularity as a tax-advantaged exit strategy for retiring business owners. </li></ul>
  13. 13. Worker, Homeownership, and Business Act of 2009 <ul><li>Includes 5-year NOL carry back for losses in 2009, irrespective of size of company. </li></ul>
  14. 14. IRA Rollovers <ul><li>No AGI limit on traditional IRA rollovers to Roth IRA in 2010. Tax can be deferred until 2011 and 2012. </li></ul>
  15. 15. Beware Of The Alternative Minimum Tax <ul><li>Always consider the impact of the AMT in tax planning. </li></ul>
  16. 16. Questions? Bill Reading wreading@gma-cpa.com | 410.900.1385 | www.gma-consult.com www.facebook.com/GrossMendelsohn www.twitter.com/GrossMendelsohn
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