Construction Tax Code in Coconut Creek, FL
It’s important to stay-up-to date on construction tax code. Tax code impacts your business, determines where you can direct revenue, and informs you how to operate legally. ABC East Florida is here to help you understand tax code to help you run a successful business. Join our chapter in Coconut Creek, FL, and become a member of our community of like-minded construction companies. In addition to helping you understand tax code, you can reap member benefits like resources and educational opportunities. Call us today to learn more about how we can help your commercial construction company enjoy success.
Tax code affects small construction companies and contractors
High corporate and individual income taxes are detrimental to companies and contractors because they reduce cash flow. Reduced cash flow negatively affects almost every aspect of how a business is run, from hiring employees to bidding on projects to purchasing equipment and more. Therefore, tax code that lowers your federal tax burden is beneficial for successful operations. ABC East Florida advocates for and supports low marginal tax rates that don’t make it difficult for commercial construction businesses and contractors to thrive.
The Tax Cuts and Jobs Act of 2017
The Tax Cuts and Jobs Act of 2017 became effective at the beginning of 2018. This act affects construction companies both large and small and how they structure their businesses and how taxes must be dealt with. ABC East Florida recognizes several positive impacts of this act, including historic rehabilitation tax credits and an increased bonus expensing/depreciation.
In addition, this act passed a new pass-through entity deduction. Partnerships, S-Corporations, limited liability companies, and sole proprietorships are now eligible for the 199A deduction, which allows pass-through entity owners to deduct up to 20% of qualified business income. This deduction does not require these entities to pay the corporate tax rate. Instead, pass-through entities are taxed at the individual tax rate of the owner. This act also reduced the impact of alternative minimum tax (AMT), simplified tax accounting processes, and included provisions that promote jobs and infrastructure.
What does the Tax Cuts and Jobs Act mean for you?
ABC East Florida supports the Tax Cuts and Jobs Act of 2017 because of its positive impact on the construction industry. Because most construction firms are pass-through entities, this act is beneficial for reducing the federal tax burden on your business. Plus, this act puts smaller businesses and corporations at less of a disadvantage when competing for jobs with C-Corporations.
This act and the 199A deduction expires in 2025, however. To remedy this, ABC East Florida advocates for permanent AMT relief, if not complete repeal of AMT. We will advocate to Congress to maintain the AMT relief set for the by the Tax Cuts and Jobs Act of 2017 so small and family-owned businesses don’t have to funnel valuable resources into expensive estate planning.
Become a voice for commercial construction
Join ABC East Florida today and advocate for construction tax code policies that will help your business stay competitive. In addition to our advocacy at the federal, local, and state level, we offer you a wealth of resources to support your success. Our educational opportunities, vast network, and member discounts help you thrive in the industry. Contact us today to become a member and join our community of like-minded companies in the Space Coast, South Florida, and the Keys.
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