­

Your resource for timely tax updates and news.

Taking Advantage of the Research and Development (R&D) Tax Credit

U.S. taxpayers claim nearly $10 billion in R&D tax credits each year. Many people assume that these credits are going only to the large companies that are revolutionizing the world. That’s not true. In fact, R&D tax credits are available for companies of all sizes, particularly because of new legislation enacted in December 2015.   In [...]

Boost retirement benefits with a cash balance plan

Construction business owners may not be able to set aside as much as they’d like in tax-advantaged retirement plans. Typically, they’re older and more highly compensated than their employees, but restrictions on contributions to 401(k) and profit-sharing plans can hamper retirement-planning efforts. One solution may be a cash balance plan. Defined benefits with a twist [...]

Are you getting all that you deserve?

Don’t overlook the research credit Construction businesses are often surprised to learn that they may be eligible for the research tax credit, often referred to as the “research and development,” “R&D” or “research and experimentation” credit. Too often, they assume that this tax break is for only large pharmaceutical, biotechnology, software and aerospace companies, so [...]

Maximizing the Section 199 deduction

As a construction business, your company may be eligible for the Section 199 deduction for “domestic production activities.” This tax break is known by several names, including the “domestic production activities deduction” and the “manufacturers’ deduction.” In fact, many contractors overlook the Sec. 199 deduction because they believe it’s only for manufacturers. But it’s also [...]

Important things to know about the Nevada Commerce Tax

On June 10, 2015, Nevada Governor Sandoval signed a bill enacting a new annual commerce tax (which became effective July 1, 2015) applicable to each business entity engaged in business in Nevada with Nevada-sitused gross revenue exceeding $4,000,000 in a taxable year. If a business entity’s Nevada gross revenue exceeds $4,000,000, the excess is subject [...]

3 tax deductions that could lead to an IRS audit

For too many taxpayers’, the worst nightmare is getting audited. However, you should still take advantage of tax deductions that you are entitled to take. Keeping the correct documentation to back up the deductions is key when the IRS decides to take a further look at your return. Listed below are three deductions that frequently [...]

TAX UPDATE: Tax extenders bill signed into law

On December 18, 2015, the President passed the “Protecting Americans from Tax Hikes Act of 2015” (The PATH Act). The bill extends various expired tax provisions, “extenders,” in three ways. Some tax breaks have been made permanent, some have been extended through 2016, and some have been extended through 2019. The following are some of [...]

Reporting business charitable deductions

Giving to charities and other non-profit organizations is a good way for your small business to build goodwill within the community and is often part of an overall public relations strategy. For businesses, making charitable donations in cash, property and time can be a benefit when it comes time to file your business taxes. Many [...]

Year end tax planning for construction companies

As year end approaches, construction company owners should work with their tax advisor to review options for reducing their 2015 tax bills. There’s no cookie-cutter formula for year end tax planning — the right approach depends on your particular situation — but here are several strategies to consider. Look ahead Although the primary goal of [...]

New Due Dates for Tax Returns – How Does This Affect You?

If you read about the due dates of all of the different types of tax returns changing, you are probably wondering how these changes affect you. This is where things get interesting. The new law changes a number of due dates for tax returns. The Surface Transportation and Veterans Health Care Choice Improvement Act of [...]

The Child and Dependent Care Credit, Do You Qualify?

During the summer months, many children attend daycare and summer camps while their parents are at work since school is out. What you may not be aware of is that the costs for these may qualify for a federal tax credit (Child and Dependent Care Tax Credit). Below are a few things that you should know about [...]

Tax deductions often overlooked by contractors

Although contractors are among the most heavily taxed under the Internal Revenue Code there are many options within the tax code that allow contractors to minimize their tax as follows: Methods of Accounting - contractors have more methods of accounting available to them than nearly any other taxpayer. A contractor may be eligible for use [...]

Sales and use taxes: Evaluate your exposure before you bid

If you do business across state lines, don’t assume that other jurisdictions will tax your business the same way it’s taxed at home. Just one misstep can quickly turn a potentially profitable job into a money loser. Material differences Most states treat contractors as the ultimate consumers of building materials they incorporate into a construction [...]

IRS Offshore Reporting Program Gets Streamlined

The Internal Revenue Service (IRS) recently announced changes in its offshore voluntary compliance programs by providing new options to help both taxpayers residing overseas and those residing in the United States.  According to the IRS, the program changes are expected to provide thousands of taxpayers a new route to come into compliance with their U.S. tax obligations. The [...]

IRS Updates Affordable Care Act Q&A Regarding Reimbursement Arrangements

The Internal Revenue Service has recently stated that employers are not in compliance with the Affordable Care Act by simply reimbursing their employees for buying insurance through one of the exchanges instead of establishing a health insurance plan for employees. The IRS updated their website Q&A regarding the Affordable Care Act and the question which resulted in [...]

Santa Ana CPA Firm Owner, Glenn Gelman, Receives Prestigious Associate Achievement Award by the Associated General Contractors of California

NEWS RELEASE For Immediate Release SANTA ANA, CA (June 16, 2014) - The Associated General Contractors (AGC) of California, an organization of responsible construction firms and industry-related companies, recognized Glenn Gelman, managing director of Glenn M. Gelman & Associates, as their 2014 Associate Achievement Award winner. Mr. Gelman holds a Bachelor of Science degree in [...]

Updates to our online tax planning guide

To help you stay abreast of tax developments that might affect you, we’ve recently updated our online tax planning guide to include some new Taxing Questions that cover the following timely topics: Qualifying for transitional relief under final ACA play-or-play regs Tax return fraud Retention guidelines for tax-related records Donating vehicles to charity Tax consequences [...]

How to Obtain Your IRS Transcripts Online

If you ever wondered what information the IRS has on file for you or misplaced a prior year tax return and need another copy, you are now in luck. Starting in January 2014, you can now access your individual IRS transcripts online via the IRS website at www.IRS.gov and clicking on “Get Transcript of Your Tax Records” under the Tools menu. Depending [...]

Federal Small Business Health Care Tax Credit, What You Need to Know

For tax years beginning in 2014 or later, there is a tax credit for small businesses which pay toward workers' health care premiums. The maximum credit is 50% of the premiums paid for small business employers and 35% of premiums paid for small tax-exempt employers. To be eligible for the credit, a small employer must pay [...]

How to prepare for and survive a tax audit

What’s the best way to avoid being audited? Document everything and contact your tax advisor. This article explains what records you need to keep, the different types of audits conducted by the IRS, and the importance of appealing the results.