Theresa Arndt, CPA

I want make you aware of a substantial deduction that many people in the construction industry qualify for but is often overlooked by tax preparers.   Specifically, I am speaking about the “Domestic Production Activities Deduction”.   This deduction is available to all home builders and contractors regardless of what tax forms they file.    If you are a sole proprietor, S-corporation, LLC or Partnership, you can tell if you have taken the deduction by looking at line 35 of your Form 1040.   I find that nearly all of the builder’s and sub contractor’s tax returns I have reviewed have not claimed this deduction…and it can be substantial.   Personally, I think there are a couple of reasons this deduction is not being taken advantage of: ·           Some tax preparers may not be up to speed on all changing tax laws as it relates to the construction industry   ·      ...

Part of being a good CPA partner to my client’s businesses is keeping track of industry trends that can eat into their bottom line.   Many of my clients are in the construction industry so today’s topic is of particular interest to them. The residential construction industry is receiving a lot of unwanted attention from OSHA for the first time.   Injuries on residential projects have increased and now OSHA has named the Residential Construction Industry as a target industry In December 2010, OSHA introduced stronger worker safeguards to prevent falls in residential construction.   The new standards for residential construction were scheduled to go into effect on June 15, 2011, but OSHA announced a three-month phase in to allow employers time to gear up to meet the compliance requirements.   The phase in period is over and the new directive is now fully in place as of September 15, 2011. If you are a residential contractor, general or sub, are you in complia...