Tax break: Activated – Don’t overlook the Section 199 deduction

Description

Abstract: Many contractors may not fully realize that their companies could qualify for the Section 199 tax deduction. They should, because it could allow a construction business to deduct from its taxable income as much as 9% of taxable income derived from certain qualifying activities. This article identifies some of the activities that may be eligible and describes the calculations involved. A sidebar looks into recently proposed IRS regulations related to the Sec. 199 deduction.