Five Tax Strategies to Reduce Contractors’
Income Tax Liability
 As Published in Construction Executive ’s Managing Your Business
Focused on You. Dedicated to Your Success.
February 12, 2018

My article entitled Five Tax Strategies to Reduce Contractors’ Income Tax Liability was published on December 13, 2017, in Construction Executive ’s e-newsletter, Managing Your Business . Both are published by the Associated Builders and Contractors (ABC).

In the article , I discuss five strategies you should consider to reduce your income tax liability. These are:

  • Using the right accounting method. 
  • Deferring profits or retainage. 
  • Taking advantage of the DPAD deduction (repealed)
  • Qualifying for a R&D tax credit. 
  • Assessing opportunities for deductions on pass-through entities. 

Since this article was written, the Tax Cuts and Job Act (TCJA) was signed into law. Even though the domestic production activities deduction (DPAD) was repealed (for tax years beginning after 2017), the other strategies may benefit you. There are also numerous other tax elections that you may be eligible to take. It is never too early to start planning to reduce your 2018 tax obligation.

Feel free to call any member of our team at 610-828-1900 to discuss the best strategies for your situation. Or contact either Jackie Himes, CPA, tax manager at or myself . We are always happy to help.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).