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Construction

Build Profitability Into Every Project

Contractors, developers, and construction firms face high material, payroll, and liability costs. But they’re also rich with tax planning opportunities — from real estate acceleration to payroll credits and captive structures.

Free Benefit Analysis

Why Construction Firms Benefit

  • Engineering & process optimization may qualify for R&D credits
  • Real estate development, equipment and properties
  • Larger workforce benefits from payroll tax savings
  • High risk profile makes captive insurance attractive

Top Tax Strategies That Apply

Cost Segregation

For warehouses, offices, or built properties

R&D Tax Credit

Project planning, jobsite efficiency, materials testing

Captive Insurance

For liability, warranty, and labor risk

Payroll Tax Reduction

FICA savings per W-2 worker

Form 3115

Catch-up depreciation

179D

Designers, contractors, and construction firms working on government, nonprofit, or tribal projects

Example Scenarios

GC firm with $5M build-out

$740K
via cost segregation + Form 3115 saved

Contractor with 68 W-2s

$46K
year in payroll tax savings

Why CPAs Often Miss This

  • Wrong accounting method: PCM vs. cash/completed-contract, look-back interest, small-contractor exceptions
  • Don’t claim R&D for means-and-methods, BIM, VDC, or prefab innovation
  • Miss §179D opportunities (designer allocations) and documentation
  • Fail to apply TPR rules (repairs vs. improvements), partial asset dispositions, and Form 3115
Book a Tax Strategy Call for Construction