Year end tax strategies for contractors

Description

Abstract: Tax planning is particularly important this year because 1) individual income tax rates are higher, 2) several tax breaks are scheduled to expire at the end of this year, and 3) new taxes, especially the 3.8% Medicare surtax on net investment income, require special attention. This article discusses all of these items, while a sidebar explores whether it’s advisable for some construction companies to convert to a C corporation to reduce their tax bills.