Alternative minimum tax (AMT) is essentially a base-level percentage an individual taxpayer or S-corporation must pay the IRS, regardless of the credits and deductions they are entitled to. Contractors need to be especially mindful of AMT, as it can have a major effect on tax liability.
Long-Term Contracts and AMT
When reporting regular tax calculations, contractors that have average gross receipts under $25 million are able to account for their long-term contracts us Read More >>
The monthly work-in-progress (WIP) schedule your team puts together can be so much more than your financial statements. It can help you manage and plan throughout the entire year to better manage your jobs, maximize your profits, and assist with tax planning.
Make Sure Your WIP is Accurate
To start, make sure your WIP schedules are accurate. Your WIP is how you’re able to balance the billing of a project and its level of completion. Staying up-to-date with your billing on a pro Read More >>
Dennis Dlugosz, CPA is a Director and the leader of the Construction Services group.
Technological advancements have affected several industries, forcing businesses to adapt to these innovations or fall behind. Similar to other service related fields, construction has also been affected by these changes, which has promoted technological developments heavily within the past decade. Some of these advances include sustainable construction materials and diversify Read More >>
Dennis Dlugosz – Director, Corrigan Krause
This article was first published in the November 2017 issue of Properties Magazine.
With construction accounting, there are a number of allowable choices to consider when determining the correct and most beneficial tax method to use.
Under Internal Revenue Code § 460 (460), the percentage-of-completion method (PCM) of accounting is required for large contractors with contracts meeting the definition of “long-term Read More >>
Elizabeth Friswold, CPA explains the benefits of teaming agreements and things you should consider.
Are you familiar with teaming agreements? Did you know that teaming agreements could benefit your company? Learn the basics and benefits of these types of agreements.
Where did teaming agreements come from?
Born from the Small Business Jobs Act of 2010 (SBA), the Small Business Teaming Pilot program was initiated to increase access to procurement and contract Read More >>
Sean Brady explains method options for construction companies:
Identifying the best accounting method to report your income and expenses is not always an easy task. Many rules and regulations apply and making the incorrect choice can negatively impact your business. It’s important to understand how each method differs, paying special attention to the impact on your taxes and your long-term business goals.
Accounting methods depend on:
- The type of contracts you have
Andy Pena takes a look at this method of recording long-term contracts:
In order to comply with generally accepted accounting principles (GAAP), your construction company’s financial statements are required to recognize revenue a certain way. GAAP requires revenue to be recorded in the period it is earned, regardless of when it is billed or when cash is received. The best way to comply with this revenue recognition under a fixed price construction contract Read More >>