December 2022
Challenges of Contractors Crossing State Lines

The past two years have been difficult on many industries and especially on the construction industry. With record-setting levels of inflation and supply-chain issues, contractors need contracts that return solid gross profit numbers to cover the additional cost. This has caused many owners to expand business in other states. In this article, I will explain why you should use caution before entering into a new market and provide tax implications you should be thoughtful of.
Reviewing 10 Tax Accounting Methods for Construction Companies
Depending on earnings, as well as contract type and length, a construction company can choose from various tax accounting methods. In fact, an Internal Revenue Service (IRS) guide lists 10 methods for “long-term” contracts; that is, those not completed within the same tax year as they entered into. In this article, we will review each of these methods to help you determine whether you’re making the optimal choice for your contracts. 
Is Your Company’s 2023 Budget Built on a Solid Foundation?
Construction company owners: Have you finished your 2023 budget yet? If so, will it hold up throughout the year? No matter where you’re at in the process, it doesn’t hurt to double-check your methodology to ensure your spending plan is built on a solid foundation. This article outlines some key points to keep in mind when developing your budget.
If Your Construction Company is a C corporation, Beware of “Unreasonable” Compensation
If your construction business is a C corporation, take care that you and other owners aren’t compensated “unreasonably” by IRS standards. In a recent case, the U.S. Tax Court found that a construction company owner wasn’t entitled to the deductible amounts he’d claimed in two tax years, and he was subject to a penalty. In this article, we will review the court case, how the IRS challenged the deductions for owner compensation and how proper documentation helped lessen the penalties. 
Register for our 2023 Virtual Nonprofit
Conference on January 11, 2023!

Join us for our 2023 Virtual Nonprofit Conference. This conference is designed to provide valuable insight on the financial and operational issues facing the nonprofit industry and to help you become more effective in managing your organization or serving on a board.
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About Dannible & McKee, LLP

Dannible & McKee, LLP has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. We are highly respected among construction leaders, and are actively involved with our construction clients and the many organizations affecting their businesses. We go beyond our competition by conducting one-on-one, year-end planning meetings to review your operations and plan for income taxes, banking and bonding concerns. Because of our comprehensive familiarity with all aspects of construction, we can assist you in business planning and long-term goals, all while resolving your daily operational needs to maximize cash flow.

OFFICE LOCATIONS:
DM Financial Plaza, 221 South Warren Street, Syracuse, NY 13202
213 North Street #1, Auburn, NY 13021
220 Harborside Drive, Suite 201, Schenectady, NY 12305
220 Stage Road, Vestal, NY 13850

To learn more about Dannible & McKee, visit us at: www.dmcpas.com