No matter how your construction or construction-related company is set up tax wise, the new federal tax reform rules should offer your company some significant tax benefits.
If you’re a C Corporation, the biggest benefit is the reduction of tax rates ranging from 15% to 35% to a flat 21% rate. The Corporate Alternative Minimum Tax also has been repealed.
If you’re the owner of pass-through entity – an S Corporation, partnership or sole proprietorship – there’s also a major new business deduction for you. It’s not as easy to understand, but in some cases may be more beneficial.
And while the new federal tax law includes many benefits for businesses, there are some losses as well. Read on to learn about the most significant changes.