Most Overlooked Deduction for Clients in the Construction Industry
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 · ...