D&M Construction Industry Newsletter

April 2025

Featured Article From Our Experts

Nexus Requires Compliance and Begins by Filing Tax Returns

The word “nexus” refers to the relationship between a business and a taxing jurisdiction that gives the authority to impose tax obligations. When nexus is established, a business is required to file sales tax as well as income or franchise tax returns in that jurisdiction. If you do not comply, your company may be liable for past due taxes, penalties and interest. In this article, I will review what you need to know about identifying nexus to ensure compliance through proper income and sales tax filings.

Reviewing the Look-Back Method for Long-Term Construction Contracts

Does your construction business perform long-term projects? If so, you may need to undertake the look-back method when reporting income to the IRS. The look-back method is a tax accounting technique that contractors and the IRS use to 1) adjust taxes paid on long-term contracts to reflect actual profit or loss and 2) recover interest on income taxes that were over- or underpaid during the project. This article provides a quick review.

Construction Companies Should Approach Drone Purchases Carefully

Drones are becoming increasingly popular tools in the construction industry, offering advantages in surveying, site monitoring and project documentation. If you’re interested in buying one, approach the purchase with a careful eye on what you’ll use it for and the total cost of ownership. This article explores key considerations construction firms should weigh to ensure a drone investment delivers long-term value.

Preconstruction Should Concentrate on Major Issues

Preconstruction can make the difference between a project’s success or failure. It can also determine contractor’s profit or loss. This article explains how to stay on track and what you should consider to help your construction company keep preconstruction a valuable option.

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About Dannible & McKee, LLP

Dannible & McKee, LLP is a leading CPA firm that has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. Known for our technical expertise and deep industry experience, we are committed to delivering high-quality service tailored to our clients' needs. As trusted advisors to the construction industry, we are highly respected among construction leaders and actively engaged with many organizations that shape the sector. We stand out from our competition by conducting one-on-one, year-end planning meetings to review your operations and plan for income taxes, banking and bonding concerns. With a comprehensive understanding of all aspects of construction, we help businesses navigate daily operational challenges, maximize cash flow and develop long-term strategies for sustained success.

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

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