Episode 52 - High-Income Contractors: This Deduction Still Works (PTET Part II)

Show Notes

The SALT deduction rules just changed — and if you’re a California contractor with an S-Corp or partnership, this update directly impacts how much federal tax you’re paying.

In this video, CPA George Ghazarian breaks down:

  • The new $40,000 SALT deduction limit under the OBBBA
  • How it compares to the California Pass-Through Entity Tax (PTET)
  • When PTET still makes sense (and when it doesn’t)
  • Real contractor examples with actual dollar savings

This is a must-watch if you’re paying more than $40,000 per year in California state taxes.

What Changed With the SALT Deduction?

Under the 2017 Tax Cuts and Jobs Act, individuals could only deduct $10,000 of state and local taxes — no matter how much they actually paid.

The new OBBBA legislation increases that limit to:

  • $40,000 for joint filers
  • $20,000 for single filers

That’s a meaningful improvement — but many profitable California contractors still pay far more than $40,000 in state taxes each year.

What PTET Does (And Why It Still Matters)

The California Pass-Through Entity Tax (PTET) allows S-Corps and partnerships to pay state income tax at the entity level.

Why that matters:

  • Entity-level taxes are fully deductible for federal purposes
  • There is no SALT cap at the business level
  • The owner receives a dollar-for-dollar credit on their personal CA return

PTET effectively converts nondeductible personal taxes into a fully deductible business expense.

PTET vs. the New $40,000 SALT Limit

Key takeaway:

The $40,000 SALT limit helps — but it does NOT replace PTET for most California contractors.

Examples discussed in the video:

  • Contractors paying $60,000+ in CA tax still lose deductions without PTET
  • At higher income levels, PTET can save $7,000–$28,000+ per year in federal taxes
  • Lower-income years may justify skipping PTET

This is now a strategy decision, not a blanket rule.

Real Contractor Case Study

An S-Corp construction company earning $850,000:

  • CA tax: ~$79,000
  • Without PTET: only $40,000 deductible
  • With PTET: full $79,000 deductible
  • Result: $13,650 in federal tax savings, even with the new SALT cap
  1. State Income Taxes

✔ Included

This is the biggest category for most people.

Includes:

  • State income tax withheld from W-2 wages
  • State income tax paid with quarterly estimates
  • State income tax paid with your return
  • Additional state tax paid after audit or notice
  • Pass-through income tax paid personally (if not PTET)

👉 For CA contractors, this is usually the largest SALT item.

  1. Local / City / County Income Taxes

✔ Included (if applicable)

Examples:

  • NYC local income tax
  • Other municipal income taxes (not common in CA)
  1. Real Estate (Property) Taxes

✔ Included

Includes:

  • Property taxes on your primary residence
  • Property taxes on rental properties
  • Property taxes on vacation homes
  • Supplemental property tax bills

⚠️ Important distinction:

  • Personal-use property taxes → SALT deduction (subject to cap)
  • Rental / business property taxes → NOT SALT (fully deductible as a business expense, unlimited)
  1. Personal Property Taxes (If Based on Value)

✔ Included

Must be:

  • Based on the value of the property
  • Charged on a yearly basis

Examples:

  • Vehicle registration fees based on value (the value-based portion only)

 

California PTET Rules You Must Follow

PTET is powerful — but strict deadlines apply:

  • June 15 payment is mandatory (miss it and PTET is gone for the year)
  • Final payment due March 15 of the following year
  • PTET is elected annually, not permanently
  • Credit flows automatically to your personal CA return

Missing deadlines is the #1 mistake contractors make.

When PTET Might Not Make Sense

PTET may not be ideal if:

  • Your CA tax liability is below the SALT limit
  • Your business has a loss
  • Cash flow is tight
  • You’re planning a sale or restructuring

For most profitable contractors, however, PTET is still a major win.

CPA Recommendation for California Contractors

General guidance:

  • CA tax over $40k: PTET is almost always worth it
  • CA tax $20k–$40k: Run the numbers
  • CA tax under $20k: PTET usually unnecessary

Most established contractors fall well above the $40k threshold.

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Episode 51 - Turn Your State Taxes Into a Write-off: PTET for Contractors

Show Notes

If you’re a California contractor operating an S-Corp or partnership, the Pass-Through Entity Tax (PTET) may be one of the most powerful tax strategies available to you. In this episode, we break down exactly how PTET works, who qualifies, and why it can save you thousands in federal taxes each year.

🔥 What Problem PTET Solves

The 2018 Tax Cuts & Jobs Act created the infamous $10,000 SALT deduction cap, limiting how much state and local tax you can deduct on your federal return.
California contractors often pay far more than that — $20k, $50k, even $150k+ — but only get to deduct $10,000.

PTET gives business owners a legal workaround to reclaim those lost deductions.

💡 What PTET Actually Is

PTET allows your S-Corporation or partnership to pay your California income tax at the entity level instead of personally.

Here’s what that does for you:

  • Your business pays a 9.3% PTET tax to the state
  • The business deducts that tax on its federal return
  • Your personal taxable income drops
  • You get a dollar-for-dollar credit on your California return

Result:
Bigger federal deductions. Lower taxable income. More money in your pocket.

Many contractors save $10k–$60k+ per year using PTET.

👷 Who Qualifies (Contractor Edition)

Eligible structures:
✔️ S-Corporations
✔️ Partnerships / LLCs taxed as partnerships

Not eligible:
❌ Sole proprietors
❌ Single-member LLCs taxed as individuals
❌ C-Corps

If you’re still on Schedule C as a contractor, you’re leaving money on the table.

⚙️ How the PTET Election Works in California

California applies strict rules — here’s how to stay compliant:

  1. Make PTET Payments on Time

Two required payments:

  • June 15 – 50% of last year’s PTET or $1,000 minimum
  • March 15 (next year) – Final payment

Miss June? You’re out for the entire year. No exceptions.

  1. Elect PTET on the Entity Tax Return

File Form 100S (S-Corp) or 565 (Partnership) and attach the PTET election.
The election is made annually.

  1. Claim the Credit on Your Personal Return

You’ll receive a full PTET credit on your California Form 540.
The state handles this part smoothly.

📊 Real Contractor Case Study

ABC Construction, Inc – S-Corp

  • Pass-through income: $800,000
  • CA tax (9.3%): $74,400

With PTET:

  • Entity deducts $74,400 federally
  • Lowers taxable income
  • Federal tax savings: $26,000+
  • Owner gets full $74,400 CA tax credit

Without PTET:
Most of that tax becomes nondeductible due to the SALT cap.

⚠️ Common PTET Mistakes to Avoid

  • Missing the June 15 deadline — the #1 deal-breaker
  • Not having enough S-Corp cash (entity must pay it)
  • Ignoring multi-owner issues like basis and distributions
  • Using PTET in a loss year
  • Assuming PTET is only for high-income businesses
    (Benefits often start around $300k in pass-through income)

⛔ When PTET May NOT Be Ideal

PTET isn’t always the answer. You may skip it if:

  • It’s a low-income year
  • Cash flow is tight
  • You plan to convert to a C-Corp
  • You anticipate selling the business soon

For most growing contractors, though, PTET remains a major tax advantage.

📣 Wrap-Up

PTET is one of California’s most powerful—and most overlooked—tax strategies for contractors. If you run an S-Corp or partnership, you might be able to reduce your federal taxable income significantly.

My firm, Accounting Solutions LLP, helps contractors across the state evaluate PTET, plan their payments, and file the election correctly.

If you found this helpful:
👍 Like the video
💬 Drop your questions in the comments
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Thanks for watching — see you in the next episode!

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Episode 50 - When a Contractor's Dog Becomes a Legit Tax Deduction

Show Notes

Can You Deduct Your Pet? What Construction Contractors Need to Know

Can you really deduct your dog or other pet as a business expense? The short answer is usually no — but for construction contractors, there are limited situations where a pet may qualify as a legitimate tax deduction.

In this episode, we break down the real IRS rules, common contractor mistakes, and how to approach pet-related deductions without triggering an audit.

What the IRS Actually Cares About

The IRS does not care whether a pet is loved, loyal, or emotionally supportive. The only thing that matters is whether the animal serves a clear, ordinary, and necessary business purpose.

For contractors, this issue comes up more often than expected due to equipment yards, storage facilities, job-site security concerns, and rural operations.

When a Pet May Qualify as a Business Deduction

Some limited scenarios where contractors may be able to deduct pet-related expenses include:

  • Guard dogs used to protect equipment yards, shops, warehouses, or stored materials
  • Security or predator control for rural or agricultural-related construction operations
  • Advertising or branding use, where a pet is consistently and demonstrably part of the business’s marketing identity

In all cases, the animal’s primary function must be business-related — not personal.

What Pet-Related Expenses May Be Deductible

If a pet legitimately qualifies for business use, certain expenses may be partially deductible, including:

  • Veterinary care related to the animal’s business function
  • Food and maintenance (reasonable amounts only)
  • Specialized training for guarding or security purposes
  • Kennels, fencing, or containment tied to business property
  • A properly allocated portion of insurance or security expenses

Most deductions are partial, not 100%, unless the animal is used exclusively for business purposes.

Common Contractor Mistakes That Trigger IRS Issues

Contractors frequently get into trouble by:

  • Claiming family pets as guard dogs
  • Treating emotional support animals as business expenses
  • Deducting 100% of pet costs despite mixed personal use
  • Lacking documentation to support the business purpose

If a pet lives inside the home, interacts with family, or functions primarily as a companion, it is almost always considered a personal expense.

Home-Based Contractors Face Higher Scrutiny

Contractors operating from home face additional IRS skepticism. To support a pet-related deduction, there must be:

  • A clearly defined business-use area
  • Stored equipment or materials requiring security
  • A legitimate, documented security need

Even then, deductions are typically limited and carefully allocated.

Professional Guidance for Contractors

Pet deductions are generally low-dollar, high-risk strategies. Contractors are usually better served focusing on larger, more defensible tax strategies such as:

  • Equipment depreciation and cost segregation
  • Vehicle and mileage planning
  • Proper home office deductions
  • Retirement contributions and tax-advantaged planning
  • Income structuring and entity optimization

If a pet truly qualifies, the deduction should be handled carefully and documented thoroughly. If not, it’s best to avoid forcing it.

Final Takeaway

Trying to deduct a pet without a legitimate business purpose can quickly lead to problems with the IRS. Smart tax planning for contractors focuses on defensible deductions, not trendy or questionable write-offs.

If you’re unsure what deductions apply to your construction business, professional guidance can help ensure compliance while maximizing tax efficiency.

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Episode 49 - Crypto Payments in Construction? The IRS Is Watching

Show Notes

The IRS has officially launched Form 1099-DA, a major new reporting requirement for digital asset transactions—including crypto payments, exchanges, and certain real estate deals. This is the most significant change to crypto tax reporting in years, and it directly affects contractors, subcontractors, real estate pros, and anyone using crypto in their business.

This episode breaks down what Form 1099-DA is, why it matters, which transactions get reported, and what contractors must do NOW to stay compliant before the first forms roll out in 2026 for the 2025 tax year.

  • IRS rolls out Form 1099-DA
  • Applies to 2025 tax year; first issued in 2026
  • Impacts anyone using crypto in business: payments, bonuses, investments

Even if you don’t trade crypto, you’re affected if:

  • You accept crypto as payment
  • You invest company profits in crypto
  • Subs use crypto payment processors
  • Real estate deals involve crypto
  • Your customers pay or get paid through crypto platforms

Bottom line: Contractors are now firmly on the IRS’s radar.

Custodial platforms (Coinbase, Binance, BitPay, etc.) must report:

  • Taxpayer info (name, address, TIN)
  • What was sold
  • Units, sale date, gross proceeds
  • Whether sale was for cash, crypto, property, services, etc.
  • Cost basis reporting begins in 2026

This closes long-standing IRS visibility gaps.

Reportable events include:

  1. Selling crypto for cash
  2. Getting paid in crypto for goods/services
  3. Crypto-to-crypto trades
  4. Using crypto to buy real estate (2026 forward)
  5. NFT sales over $600

Not reported in 2025 (for now):

  • Wrapping/unwrapping
  • LP transactions
  • Staking
  • Some lending
  • Short sales
  • Notional principal contracts

Most contractors won’t touch these—but you should know they exist.

  • FIFO becomes the default method
  • Specific ID still allowed—but you must choose LOTS before or at sale
  • Broker must support specific ID for it to count
  • 2025 is a transition year

If you invest in crypto:
📌 This is the year to clean up your tracking.

The IRS no longer lets taxpayers treat crypto holdings as one big bucket.

You must track:

  • Cost basis per wallet
  • Movement of coins between wallets
  • Basis allocation across all wallets before Dec 31, 2025

Two allocation options:

  1. Specific unit allocation (high precision)
  2. Global allocation (spread basis proportionally)

Critical for anyone using multiple exchanges.

Congress killed the IRS’s proposed DeFi reporting rules in 2025.

So:

  • DeFi platforms do NOT issue Form 1099-DA
  • Custodial brokers DO

You should:

  1. Track all crypto payments
  2. Choose your accounting method now (FIFO vs. Specific ID)
  3. Organize wallets and complete basis allocation by 12/31/2025
  4. Use crypto accounting software (not spreadsheets)
  5. Consult your CPA (crypto + business = messy tax situations)

Crypto is no longer the “wild west.”
The IRS is tightening enforcement, and 1099-DA is the new tool.

If you accept crypto, invest in it, or even plan to—get your systems ready now.
For help with:

  • Recordkeeping
  • Basis tracking
  • Accounting method selection
  • Tax planning

👉 Reach out. I’m here to help.

Don’t forget to like, subscribe, and drop questions in the comments—I answer every one.

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Episode 48 - The Most Underrated Tax Deduction for Contractors 179D

Show Notes

If you’re a construction contractor, GC, mechanical contractor, lighting contractor, architect, engineer, or design-build pro, this episode is a must-watch. Section 179D is one of the most powerful—and underused—tax deductions available for commercial construction and government projects.

In this video, I break down how 179D works, who qualifies, how much money is on the table, and exactly how contractors can claim the deduction (even when the building owner can’t).

🔧 What You’ll Learn in This Episode

👉 What Section 179D Actually Is

179D is an energy-efficient commercial building deduction.
If your work helps a building save energy—through lighting, HVAC, or envelope improvements—the IRS may allow YOU, the designer/contractor, to take the deduction when the owner can’t (government + tax-exempt buildings).

Eligible building owners include:

  • Schools & universities
  • Airports
  • Libraries
  • Courthouses
  • Military & municipal buildings
  • Nonprofits & religious institutions

Eligible “designers” include:

  • GCs
  • Design-build firms
  • Mechanical contractors
  • Lighting contractors
  • Architects & engineers
  • Energy consultants

💰 How Big Is the Deduction?

Depending on energy savings + labor rules, the deduction ranges from:

💵 $0.54 to $5.00+ per square foot

Example:

  • A 100,000 sq. ft. school project could generate $54,000 to $500,000+ in tax deductions.

For contractors doing multiple projects per year, this becomes a major tax strategy.

⚡ What Types of Work Qualify?

179D applies to improvements in three core systems:

  1. Interior Lighting Systems

LED retrofits, high-efficiency lighting, controls, daylighting.

  1. HVAC & Hot Water Systems

VRF systems, chillers, heat pumps, efficient ventilation, boilers.

  1. Building Envelope

Insulation, roofing, windows, doors, air sealing.

If your work reduces energy usage, it may qualify.

📄 How to Claim the Deduction (Step-by-Step)

Step 1 — Meet Efficiency Requirements

A licensed third-party engineer calculates energy savings using IRS-approved software.

Step 2 — Get the Allocation Letter

Because the building owner is tax-exempt, they must formally allocate the deduction to you.
This letter must:

  • Be signed by the tax-exempt/government owner
  • Identify you as the “designer”
  • Specify which project elements you’re allocated

No letter = no deduction.

Step 3 — Obtain an Energy Certification

A qualified, independent engineer certifies the results.

Step 4 — Claim on Your Tax Return

Your CPA (that’s me 😄) applies the deduction to your business or personal return.

📈 Recent Changes That Make 179D Even Better

The Inflation Reduction Act expanded 179D by:

✔ Making the deduction permanent
✔ Significantly increasing the dollar amount available
✔ Allowing tax-exempt entities to allocate the deduction to contractors
✔ Enabling deductions to be taken year after year for ongoing improvements

More gov’t + nonprofit projects = more contractor opportunities.

🏗 Real Contractor Examples (Actual Math)

Lighting Contractor — Public School Retrofit

  • 90,000 sq. ft.
  • Meets prevailing wage
    ➡️ $450,000 deduction

Mechanical Contractor — City Hall HVAC Upgrade

  • 50,000 sq. ft.
    ➡️ $150,000 deduction

General Contractor — Nonprofit New Construction

  • 120,000 sq. ft.
  • Lighting + HVAC + envelope
    ➡️ $600,000+ deduction

These offsets can reduce:

  • Corporate tax
  • Personal income tax
  • Capital gains
  • In some cases, AMT

🧰 How Contractors Maximize 179D

  1. Identify qualifying projects early (ask during bid stage)
  2. Meet prevailing wage & apprenticeship rules for higher deduction
  3. Line up your third-party engineer early
  4. Secure the allocation letter BEFORE filing
  5. Work with a CPA who specializes in construction tax incentives

🎬 Closing Thoughts

Section 179D is one of the best, most powerful tax tools available to contractors working on:

  • Government buildings
  • Schools
  • Universities
  • Airports
  • Hospitals
  • Nonprofits
  • Commercial buildings with energy upgrades

If you’re not using it, you’re likely leaving serious money on the table.

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Episode 47 - New 2025 Tax Write-off: For Personal Vehicles?! Here's How it Works.

Show Notes

If you're in the trades and planning to buy a personal vehicle in 2025, there’s a brand-new tax perk inside the One Big Beautiful Bill Act (OBBBA) that could save you up to $10,000 in deductible interest per year — even if you take the standard deduction.

This episode breaks down who qualifies, how it works, what vehicles count, income limits, how much you could realistically save, and who shouldn’t rely on it.

📌 Key Topics Covered

  1. Introduction
  • New 2025 tax break affecting personal vehicle purchases.
  • Not for work trucks or business vehicles.
  • Could mean thousands in annual savings for contractors.
  1. What Is This New Tax Perk?
  • Part of the One Big Beautiful Bill Act (OBBBA) starting in 2025.
  • Allows a deduction of up to $10,000 per year in auto loan interest.
  • Works with either itemized or standard deduction — rare and powerful.
  1. Who This Benefits Most
  • Anyone financing a $40k–$70k personal vehicle.
  • High interest rates = high deductible interest.
  • Potential savings: $1,500–$3,000 per year, depending on tax bracket.
  • Ideal for contractors who need a personal ride, not a business truck.
  1. What Vehicles Qualify

Checklist:

  1. Brand New Only — no used or CPO.
  2. Financed on/after Jan 1, 2025 — no retroactive loans.
  3. U.S.-Assembled — must verify VIN or dealer info.
  4. Under 14,000 lbs — excludes heavy-duty rigs.
  5. Personal Use Only — if you depreciate or deduct mileage as a business vehicle, you cannot claim this new deduction.

Note: This rule ironically applies to the one vehicle contractors don’t use for work.

  1. Income Limits

Single Filers:

  • Phaseout: $100,000–$150,000 MAGI

Married Filing Jointly:

  • Phaseout: $200,000–$250,000 MAGI

Below the limits = full deduction.
Within phaseout = partial.
Above limit = no deduction.

  1. How Much This Could Save You

Example:

  • $55,000 new SUV purchased in 2025
  • ~$6,000 interest in year one
  • Entire $6,000 is deductible

Tax impact:

  • 22% bracket → $1,320 saved
  • 24% bracket → $1,440 saved
    And again — itemizing not required.
  1. Important Warning

This deduction expires after 2028.
Valid only for tax years: 2025, 2026, 2027, 2028.
Congress must renew it or it’s gone.

  1. Who Should Not Use This Strategy
  • ❌ Contractors needing a business vehicle write-off (Section 179, bonus depreciation, mileage).
  • ❌ High earners above income limits.
  • ❌ Buyers of used vehicles.
  • ❌ Buyers of vehicles not built in the U.S.
  1. Summary + Final Advice

Quick Recap:

  • Deduct up to $10k interest per year
  • Must be new, U.S.-assembled, personal use, <14,000 lbs
  • Starts 2025, ends 2028
  • Works with standard deduction
  • Has income limits

Final guidance: Talk to a tax pro before buying. But for many in the trades, this is a unique, time-limited opportunity.

To check if a vehicle was made in the U.S., use the official NHTSA VIN Decoder by entering the 17-digit VIN, and look for the "Plant of Manufacture" field, which shows the assembly location and country, or check the first character (1, 4, or 5 usually means U.S. assembly) for a quick indicator. 

How to Use the NHTSA Decoder:

  1. Find your VIN: It's on the driver's side dashboard or door jamb.
  2. Visit: vpic.nhtsa.dot.gov/decoder/.
  3. Enter: The 17-digit VIN and click "Decode VIN".
  4. Check the results: Look for the plant and country listed in the detailed information to confirm its origin. 

Quick Tip: A VIN starting with 1, 4, or 5 generally indicates the vehicle was assembled in the U.S.. 

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Episode 46 - The 529 Tax Trick Every Contractor Should Know

Show Notes

In this episode, I break down one of the most overlooked (and most powerful) tax strategies for builders, subcontractors, and construction business owners: Section 529 Plans.

With the new One Big Beautiful Bill Act, 529 plans just became a MAJOR wealth-building tool — not just for college, but for trades, apprenticeships, licenses, and private K–12 education.

If you're a contractor with kids (or grandkids), this episode shows you how to save thousands in taxes and fund their future — completely tax-free.

🧰 What You’ll Learn

✔️ What a 529 plan is (explained in contractor language)
✔️ How tax-free growth and tax-free withdrawals work
✔️ The two types of plans: prepaid tuition vs. college savings
✔️ HUGE new benefits starting in 2026 — especially for trades
✔️ How 529s now cover apprenticeships, trade school & licenses
✔️ The “front-loading” strategy that lets you contribute $190k at once
✔️ Why this is one of the only tax advantages built for contractors
✔️ How to choose and start a plan that fits your family

🔨 Key Highlights

  • 529 plans now allow up to $20,000/year for private K–12 tuition (starting 2026)
  • You can use 529 funds for apprenticeships, trade programs, certifications, tools, and exams
  • Tax-free rollovers into ABLE accounts are now permanent
  • Married couples can contribute up to $190,000 in one year with ZERO gift tax
  • A great way to turn a profitable year into generational wealth

👍 If you found this episode valuable:

✔ Like the episode
✔ Subscribe for weekly contractor-focused tax insights
✔ Drop a comment: Did you know the commercial credit stays at 30% until 2032?

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Episode 45 - Contractors: The Solar Credit is Ending... But This Tax Loophole Isn't

Show Notes

In this episode of Concrete Numbers, George Ghazarian, CPA, breaks down one of the biggest misunderstandings happening in the construction world right now:
Residential energy credits are expiring December 31st — but the commercial credits under Section 48 are still wide open through 2032.

Whether you’re in solar, HVAC, roofing, electrical, or general construction, this episode gives you the clarity (and sales angle) you need to keep revenue flowing long after the residential deadline hits.

🔥 What You’ll Learn in This Episode

1️⃣ What Actually Expires on December 31st

Homeowners are rushing to finish solar, heat pumps, and efficiency upgrades before the residential credits under Sections 25C and 25D step down or expire. George explains exactly what the deadline means and why homeowners are panicking.

2️⃣ Why Contractors Shouldn’t Panic — Section 48 Is Still Wide Open

The commercial Investment Tax Credit (ITC) stays at 30% through 2032, with:

  • ❌ No 2025 expiration
  • ❌ No “start construction by July 2026” rule
  • ❌ No mid-construction cutoff

Contractors can keep selling qualifying energy improvements to businesses, rentals, and income-producing properties for years.

3️⃣ What Qualifies as a “Commercial Project” Under Section 48

This credit applies far beyond traditional commercial buildings. Eligible properties include:

  • Offices, retail, industrial, warehouses
  • Rental properties (single-family to multifamily)
  • Airbnbs & short-term rentals
  • Farms and agricultural structures
  • Mixed-use buildings
  • Any property used in a trade or business

George breaks down how even partial business use of a home can qualify a portion of the project for the commercial credit.

Example covered:
A homeowner using 25% of their home for business can allocate that portion of a $100,000 energy-improvement project and receive a $7,500 commercial ITC.

4️⃣ Clearing Up the Misinformation About “Start of Construction Deadlines”

There is NO July 6, 2026 deadline, despite the rumor floating around the industry.
George explains:

  • Where that date actually comes from
  • Why it has nothing to do with Section 48
  • The real rule: property just needs to be placed in service in a year the credit applies

5️⃣ How Contractors Should Be Selling This Right Now

George gives four ready-to-use pitches to help contractors save deals and close new ones:

  • Commercial credit still applies even after the residential deadline
  • Rental properties and business-use homes qualify
  • Mixed-use homes can allocate business-use percentage
  • The 30% commercial credit is available through 2032

These talking points can immediately help contractors win jobs competitors are walking away from.

6️⃣ Why This Matters for Your Construction Business

Understanding both credits allows contractors to:

  • Salvage “lost” residential deals
  • Sell more profitable commercial projects
  • Provide huge tax incentives to landlords and business owners
  • Build a year-round pipeline instead of a seasonal energy-credit rush
  • Position themselves as the go-to energy-upgrade expert

🎧 Conclusion

Residential energy credits may be expiring soon — but commercial energy credits are alive and well. Contractors who understand Section 48 aren’t worried about December 31st. They’re focused on the opportunities that extend all the way to 2032.

📩 Need help running numbers for proposals or explaining credits to your clients?

George helps contractors structure and price energy-efficiency jobs with real tax savings.
Reach out anytime.

👍 If you found this episode valuable:

✔ Like the episode
✔ Subscribe for weekly contractor-focused tax insights
✔ Drop a comment: Did you know the commercial credit stays at 30% until 2032?

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Episode 44 - How Contractors Should Pay Themselves

Show Notes

🔨 What You’ll Learn (Fast Highlights)

  • Why paying yourself correctly matters

High cash flow, low margins, inconsistent jobs — the usual contractor chaos. George explains how bad payment habits screw your taxes, distort your books, and make the IRS ask questions you don’t want to answer.

  • Sole Proprietors & Single-Member LLCs

No payroll. No W-2. Just owner’s draws. Learn how self-employment tax works and why you’re taxed on PROFIT — not the cash you pull out. And yes… your random $9,000 “I drove past the dealership” draw is a problem.

  • Partnerships & Multi-Member LLCs

Partners can’t be W-2 employees. Ever. Learn the difference between guaranteed payments, profit distributions, and draws — and why your partnership agreement shouldn’t be written on a napkin from Buffalo Wild Wings.

  • S Corporations (the big one)

You MUST pay yourself a reasonable salary. Full stop. Then — and only then — you can take distributions with no self-employment tax. George explains how this saves thousands and the #1 mistake contractors make when they don’t run proper payroll.

  • C Corporations

Who should realistically use them, how dividends get double-taxed, and why most smaller contractors are better off avoiding C-corps unless scaling or doing advanced tax planning.

  • The biggest mistakes contractors make

Mixing funds, skipping payroll, taking too much in busy season, and not keeping books. George covers the top pitfalls that cause IRS headaches and cash flow disasters.

  • What structure is best for YOU

A simple breakdown of when to stay a sole prop, when a partnership makes sense, when to elect S-corp, and when (if ever) a C-corp is the smart move.

📣 Want Help? Work With Us

If you’re tired of guessing, stressing, or hoping the IRS “just doesn’t notice,” let us help you clean your books, set up payroll, choose the right entity, and finally pay yourself the right way.

 

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Episode 43 - OBBBA Overhaul: What Contractors Need to Know (Part 3 of 3)

Show Notes

In this episode, we wrap up our three-part series on the new business tax rules by breaking down investment incentives and information reporting changes that affect founders, investors, real estate professionals, and small business owners.

We cover how the government is expanding certain tax benefits — while quietly cleaning up years of reporting chaos.

🔹 QSBS: More Flexibility, Higher Limits, New Planning Opportunities

Qualified Small Business Stock (QSBS) remains one of the most powerful tax breaks for founders and startup investors — and the new rules significantly expand its reach.

Key updates for stock issued after July 4, 2025:

  • Tiered gain exclusions ranging from 50%–100%
  • Gain exclusion cap increases from $10M → $15M
  • Company asset limit increases to $75M
  • Partial QSBS exclusion available before the 5-year holding period

These changes create new planning opportunities around entity selection, option exercises, stock issuance timing, and exit strategy — but also introduce new complexity and potential traps.

🔹 Opportunity Zones Become Permanent (Opportunity Zones 2.0)

Opportunity Zones were set to sunset — instead, they’ve been fully revamped and made permanent starting in 2027.

Major changes include:

  • Permanent OZ program (no expiration)
  • Mandatory 5-year capital gain deferral
  • 10% basis step-up on deferred gains
  • Zone designations updated every 10 years
  • Increased reporting, transparency, and oversight
  • New incentives for rural Opportunity Zones

These updates are likely to revive long-term OZ investing and support more structured, accountable capital deployment.

🔹 1099-MISC & 1099-NEC Threshold Increases to $2,000

The long-standing $600 reporting threshold — unchanged since the 1950s — is finally being modernized.

Starting in 2026:

  • 1099-MISC and 1099-NEC reporting threshold increases to $2,000

This significantly reduces administrative burden for:

  • Small business owners
  • Landlords
  • Casual contractors
  • Seasonal and gig workers

Small, occasional payments no longer trigger unnecessary paperwork.

🔹 1099-K Rules Return to $20,000 + 200 Transactions

After years of confusion, the IRS is officially reversing course.

New (retroactive) rule effective 2025, back to 2022:

  • 1099-K issued only if both:
    • More than $20,000 in payments and
    • More than 200 transactions

This eliminates accidental reporting for:

  • Personal reimbursements
  • Selling used items
  • Splitting expenses with friends or family

Actual businesses and high-volume sellers are still reported — casual users are not.

🔹 How These Changes Fit Together

Taken as a whole, these updates:

  • Encourage startup investment and entrepreneurship
  • Support long-term real estate and community development
  • Reduce unnecessary reporting and compliance friction
  • Restore sanity to online payment platform reporting

The focus shifts away from paperwork — and back toward real economic activity.

Final Takeaways

  • QSBS is more generous and more flexible than ever
  • Opportunity Zones become a permanent investment tool
  • 1099 compliance becomes less burdensome for small payers
  • 1099-K chaos is finally resolved

This episode closes out our three-part series on the most impactful business tax changes you should be planning around now.

 

 

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Episode 42 - OBBBA Overhaul: What Contractors Need to Know (Part 2 of 3)

Show Notes

Episode 2 dives into the core deductions that quietly drive business tax planning. While Episode 1 focused on headline-grabbing incentives, this episode covers the fundamentals business owners ask about immediately: expensing, deductions, and limits that directly affect cash flow, planning, and entity strategy. The good news? There are real, meaningful wins baked into these changes.

What We Cover in This Episode

Corporate Charitable Contributions (Section 170(b))

  • Introduction of a 1% floor on deductible charitable contributions for C-corporations beginning in 2026
  • The 10% cap on deductions remains unchanged
  • Corporations can only deduct charitable contributions above 1% of taxable income
  • Practical impact for mid-size and large corporations
  • Planning takeaway: donations below the floor generate goodwill, not deductions

R&D Expensing Makes a Comeback (Section 174)

  • Restoration of immediate expensing for domestic R&D costs starting in 2025
  • Option to elect amortization over 60+ months instead
  • Retroactive relief for small businesses for tax years 2022–2024
  • Why this change significantly improves cash flow and simplifies compliance
  • Clarification of what qualifies as R&D, including software development and engineering work
  • Action item: review prior-year returns for refund opportunities

Section 179 Expensing Gets a Major Expansion

  • Expensing limit increases to $2.5 million starting in 2025
  • Phaseout threshold rises to $4 million
  • Expanded ability for growing businesses to fully expense equipment and property
  • Common qualifying assets, including machinery, software, furniture, and certain building improvements
  • Why Section 179 remains a powerful tool for small and mid-sized businesses

The Clock Is Ticking on the 179D Energy-Efficient Building Deduction

  • 179D will be eliminated for buildings beginning construction after June 30, 2026
  • Why this deduction has been so valuable for developers, architects, and engineers
  • The significant dollar impact on large construction projects
  • Planning urgency: contracts, permits, and ground-breaking must happen before the deadline

QBI Deduction (Section 199A) Becomes Permanent

  • The 20% Qualified Business Income deduction is no longer temporary
  • Expanded income phaseout ranges for service and non-service businesses
  • Addition of a minimum deduction to soften phaseout cliffs
  • Long-term planning stability for pass-through entities
  • Why this change keeps S-corps, partnerships, and sole proprietors competitive with C-corps

Employer-Provided Meals Return to 100% Deductibility (Section 274)

  • Full deductibility restored beginning in 2026
  • Applies to restaurant meals, catering, and certain specific operations
  • In-house cafeterias and general meal programs remain excluded
  • Practical impact for team lunches, meetings, and staff meals
  • A rare case where morale and tax savings align

Excess Business Loss Rules Become Permanent (Section 461(l))

  • Large pass-through losses can no longer offset non-business income beyond annual limits
  • Excess losses convert to Net Operating Losses instead
  • Permanent starting in 2027
  • Who is most affected, including real estate investors and entrepreneurs
  • Why this rule matters for entity choice, depreciation strategy, and income stacking

Key Takeaways

  • Several core deductions are expanding, becoming permanent, or returning in taxpayer-friendly ways
  • Others, like 179D, now have clear expiration timelines that require proactive planning
  • These changes impact far more than just tax returns — they influence cash flow, growth decisions, and long-term strategy

 

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Episode 41 - OBBBA Overhaul: What Contractors Need to Know (Part 1 of 3)

Show Notes

Business Tax Breakdowns

In this episode, we kick off a three-part mini-series covering major business-focused changes in the latest tax law. From clean energy credits winding down earlier than expected to the return of 100% bonus depreciation, this episode breaks down what’s changing, what’s staying, and what business owners and advisors need to plan for now.

No jargon overload. No machetes required.

🔋 Clean Vehicle Credits Are Ending Early (Sections 25E, 30D, 45W)

Clean vehicle incentives are on a fast countdown clock.

Previously available credits included:

  • Up to $7,500 for new clean vehicles
  • Up to $4,000 for used clean vehicles
  • Up to $40,000 for heavy-duty electric commercial vehicles

Key change:
All of these credits terminate after September 30, 2025 — not year-end.

Why it matters:

  • Vehicle delivery delays can derail eligibility
  • Fleet upgrades need to be planned sooner, not later
  • Waiting until late 2025 may be too late

Takeaway:
Businesses considering EV purchases should treat this as a near-term planning item, not a future decision.

⚡ Alternative Fuel Refueling Property Credit Ends Early (Section 30C)

Credits for installing EV charging and refueling infrastructure are also being shortened.

Old rules:

  • Credit up to $30,000 per location
  • Originally extended through 2033

New rule:

  • Credit ends after June 30, 2026

Impacted projects include:

  • EV charger installations
  • Fleet charging infrastructure
  • Employee or customer charging stations
  • Commercial property upgrades

Planning insight:
Permitting and construction delays could push projects past the cutoff. Early action is critical.

👶 Employer-Provided Child Care Credit Expands (Section 45F)

One of the biggest “good news” provisions in the new law.

Old structure:

  • 25% credit
  • Maximum $150,000 per year

Starting in 2026:

  • 40% credit for regular businesses
  • 50% credit for small businesses
  • Annual limits increase to:
    • $500,000 (regular businesses)
    • $600,000 (small businesses)

Eligible costs include:

  • On-site child care facilities
  • Third-party child care providers
  • Child care resource and referral services

Why it matters:
This credit significantly improves the economics of offering child care benefits and can be a powerful recruitment and retention tool.

👨‍👩‍👧 Paid Family & Medical Leave Credit Becomes Permanent (Section 45S)

After years of temporary extensions, this credit finally sticks.

What changes starting in 2026:

  • Credit is now permanent
  • Employers can calculate the credit based on:
    • Wages paid during qualified leave, or
    • A portion of insurance premiums

Why this helps:
Predictability allows employers to build long-term leave policies without worrying about annual expirations.

🏭 Advanced Manufacturing Production Credit Tightens (Section 45X)

Important updates for clean-energy manufacturers.

New restrictions effective July 5, 2025:

  • Foreign-influenced entities are no longer eligible
  • Accelerated phaseouts:
    • Wind components end after 2027
    • Critical mineral credits phase out between 2031–2034

Bottom line:
Manufacturers now have a clearer — but shorter — runway to claim these credits.

💼 Business Interest Limitation Gets Looser (Section 163(j))

A welcome relief for leveraged and asset-heavy businesses.

Old rule issues:

  • Interest deductions capped at 30% of ATI
  • Depreciation, amortization, and depletion no longer added back, shrinking ATI

New rule starting in 2025:

  • Depreciation, amortization, and depletion are added back again

Result:

  • Larger ATI
  • Higher allowable interest deductions
  • Fewer businesses subject to limitation

Most impacted industries:

  • Manufacturing
  • Construction
  • Trucking
  • Capital-intensive operations
  • Private equity-backed businesses

🧾 100% Bonus Depreciation Returns Permanently (Section 168(k))

One of the most significant changes in the new law.

Previously scheduled phase-down:

  • 40% in 2025
  • 20% in 2026
  • Eliminated thereafter

New rule:

  • 100% bonus depreciation restored permanently
  • Effective for property placed in service starting January 20, 2025

Why it matters:

  • Immediate full expensing improves cash flow
  • Simplifies planning
  • Encourages investment in equipment, vehicles, and technology

Planning tip:
Major capital purchases can now be fully expensed without timing games or phaseout concerns.

📌 Episode Recap

In this episode, we covered:

  • Early termination of clean vehicle and refueling credits
  • Major expansion of employer child care incentives
  • Permanent paid leave credits
  • Looser business interest limitations
  • The permanent return of 100% bonus depreciation

 

Tell us what you think. Drop a comment..

🔗 Connect with Us

  • 🌐 accountingsolutionsllp.com
  • 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
  • Book a Strategy Call: https://accountingsolutionsllp.com/appointment/


Episode 40 - 3 Rental Tax Hacks Every Contractor Should Know

Show Notes

🏗️ 3 Real Estate Tax Hacks Every Contractor Should Know

In this video, George breaks down three powerful real estate tax strategies that most contractors don’t know about — but absolutely should. When structured correctly, these strategies can save contractors tens of thousands of dollars in taxes while leveraging skills they already have.

What You’ll Learn

  • How short-term rentals can offset ordinary income
  • How to pull tax-free money from your business using the 14-Day Rule
  • How rental arbitrage creates deductions and cash flow without buying property

🏡 Tax Hack #1: Short-Term Rentals (STRs)

Short-term rentals (like Airbnbs) can receive special tax treatment when the average guest stay is 7 days or less. Unlike long-term rentals, qualifying STRs are not automatically passive, which opens the door to offsetting ordinary income.

Why This Matters

  • STR losses can offset:
    • W-2 income
    • Business income
    • Contractor income
    • Investment income

How the Strategy Works

  • Purchase a property and operate it as a short-term rental
  • Use cost segregation and bonus depreciation to create large paper losses
  • If you materially participate, those losses can offset regular income

Material Participation (Common Tests Contractors Meet)

  • 100+ hours and more than any other person
  • 500+ total hours per year
  • You perform substantially all the work

Example

  • Purchase price: $600,000
  • Improvements & furnishings: $80,000
  • Cost segregation generates: $150,000 paper loss
  • That $150,000 can offset $150,000 of W-2 or business income

Why Contractors Win With STRs

  • You understand construction and renovations
  • You manage subs efficiently
  • You can improve properties at lower cost
  • You already evaluate projects for ROI

🏠 Tax Hack #2: The 14-Day Rule (Augusta Rule)

The 14-Day Rule allows you to rent out a personally owned property for up to 14 days per year and keep the income 100% tax-free.

Key Rules

  • You must own the property
  • It must be used personally
  • Rent it fewer than 15 days per year
  • The income is not reported
  • Expenses are not deductible (but the income is tax-free)

How Contractors Use This

You can rent your home to your own business for legitimate business purposes.

Common Business Uses

  • Team meetings
  • Year-end planning
  • Training sessions
  • Content creation
  • Marketing photo/video shoots
  • Client events

Example

  • Fair rental value: $1,000 per day
  • 14 days rented = $14,000
  • Business deducts the rent
  • You personally receive $14,000 tax-free

🏢 Tax Hack #3: Rental Arbitrage

Rental arbitrage means leasing a property and then renting it out as a short-term rental — without owning it.

How It Works

  • Lease a property
  • Obtain landlord approval for STR use
  • Furnish and operate it as a business
  • No mortgage or down payment required

Why Landlords Often Agree

  • Guaranteed rent
  • Frequent professional cleaning
  • Better property care
  • Reduced vacancy risk

Tax Benefits

Even without ownership, you can deduct:

  • Rent expense
  • Furniture and furnishings
  • Supplies
  • Repairs and maintenance
  • Utilities
  • Cleaning services
  • Insurance
  • Marketing and photography
  • Travel related to management
  • Bonus depreciation on furniture

If STR rules apply and you materially participate, losses can still offset ordinary income.

Why Contractors Excel at Arbitrage

  • Strong property evaluation skills
  • Low-cost improvement ability
  • Operational efficiency
  • Scalable systems
  • Minimal capital required compared to ownership

🔑 Final Thoughts

These three real estate tax strategies can be game-changers for contractors when implemented correctly:

  • Short-Term Rentals
  • The 14-Day Rule
  • Rental Arbitrage

If you want help setting up:

  • STR purchases and participation
  • Cost segregation strategies
  • Augusta Rule compliance
  • Rental arbitrage tax planning

Reach out, leave a comment, or request a deeper dive on any one of these topics.

 

🔗 Questions? Connect with Me…

 


Episode 39 - Active, Passive, Pro: Unlocking the Real Estate Tax Code for Contractors

Show Notes

ACTIVE vs MATERIAL PARTICIPATION vs REAL ESTATE PROFESSIONAL

What Contractors Need to Know About Their Rentals

If you’re a contractor, builder, or hands-on business owner who also owns rental real estate, the way the IRS classifies your involvement can mean the difference between limited deductions and massive tax savings.

This episode breaks down the three levels of participation the IRS cares about and how each one impacts your ability to deduct rental losses:

  • Active Participation
  • Material Participation
  • Real Estate Professional Status (REPS)

Each level comes with different rules, benefits, and limitations — and understanding them is critical if you want to legally reduce your tax bill.

Why Participation Matters

By default, the IRS treats rental real estate as a passive activity. That usually means rental losses cannot offset:

  • W-2 wages
  • Contractor income
  • Business profits

However, there are specific exceptions that allow you to unlock deductions — and for contractors, those exceptions can be worth tens or even hundreds of thousands of dollars.

Active Participation

What It Is
Active participation is the most basic level of involvement. It applies when you’re involved in management decisions but not running the property as a full-time business.

Requirements

  • At least 10% ownership
  • Participation in basic management decisions, such as:
    • Approving tenants
    • Setting rental terms
    • Authorizing repairs
  • You can still qualify even if you use a property manager

Tax Benefit

  • Deduct up to $25,000 of rental losses against ordinary income

Income Limits

  • Full deduction under $100,000 MAGI
  • Phases out between $100,000–$150,000 MAGI
  • No deduction over $150,000 MAGI

Bottom Line
Good for lower-income investors, but often ineffective for higher-earning contractors.

Material Participation

What It Is
Material participation means you’re actively running the rental as a real business, not just overseeing it.

Common IRS Tests
You only need to pass one:

  • 500+ hours spent in the rental activity
  • You perform substantially all the work
  • 100+ hours, and no one else works more than you

Contractor Advantage
Time spent on repairs, renovations, bookkeeping, tenant screening, showings, and coordination all counts.

Important Limitation
Material participation alone does not automatically make long-term rentals non-passive.

Rental losses are still passive unless:

  • The property qualifies as a short-term rental exception
  • The rental is properly grouped with a real estate business
  • You qualify as a Real Estate Professional

Bottom Line
Necessary for certain strategies, but not enough by itself to unlock major deductions for long-term rentals.

Real Estate Professional Status (REPS)

What It Is
This is the most powerful real estate tax status available.

When you qualify, rental losses become fully deductible against all types of income.

Qualification Tests
You must meet both:

  1. 750+ hours in real estate activities
  2. More than half of your total working time must be in real estate

Qualifying activities include:

  • Rental management
  • Renovations and repairs
  • Acquisitions and leasing
  • Development and construction
  • Bookkeeping and tenant communication

Why It’s Hard for Contractors
Most contractors spend the majority of their time in construction, making the “more than half” test difficult.

Common Workarounds

  • A spouse qualifies as the Real Estate Professional
  • Reducing construction hours
  • Operating a large real estate portfolio

Tax Benefits
Once qualified:

  • Rental losses become non-passive
  • Losses can offset:
    • W-2 wages
    • Contractor and business income
    • Capital gains
    • Most other taxable income

This is how high-income investors deduct:

  • Bonus depreciation
  • Cost segregation losses
  • Renovation costs
  • Interest and property taxes

Big Picture Comparison

Active Participation

  • Easiest to qualify
  • 10% ownership + basic decisions
  • Losses capped at $25,000
  • Phases out at higher income levels

Material Participation

  • Hands-on involvement
  • 100–500+ hours
  • Required for some short-term rental strategies
  • Does not automatically unlock large losses

Real Estate Professional (REPS)

  • 750+ hours
  • Majority of work time in real estate
  • Unlimited loss deductions
  • Massive tax planning opportunities
  • Often achieved through a spouse strategy

Final Takeaway

For contractors with rental properties:

  • Active Participation is the entry level
  • Material Participation is the middle ground
  • Real Estate Professional Status is where the real tax savings happen

Understanding these distinctions — and structuring your activities correctly — can dramatically reduce your tax liability.

If you want deeper dives into short-term rentals, cost segregation, or contractor-specific structuring strategies, stay tuned for future episodes.

 

🔗 Questions? Connect with Me…

 


Episode 38 - Turn Stock Positions Into Tax Savings Contractor Style

Show Notes

🎯 Year-End Tax Moves Every Contractor Should Make Before December 31st

If you’re a contractor with money invested in stocks, funds, or brokerage accounts, there are simple year-end tax moves you can still make to significantly reduce your tax bill. In this video, George Ghazarian, CPA for construction contractors, breaks down five practical strategies you can implement before December 31st to keep more of your money and send less to Uncle Sam.

🔑 What You’ll Learn in This Video

1️⃣ Avoid Overpaying Taxes on Short-Term Capital Gains

Selling investments too early can trigger short-term capital gains taxes, which are taxed at your ordinary income rate — often as high as 40%+ for profitable contractors. Holding investments for over 12 months can cut that rate nearly in half. Timing matters, and sometimes the smartest move is simply waiting.

2️⃣ Use Investment Losses to Offset High-Tax Income

Tax loss harvesting allows you to:

  • Offset capital gains dollar-for-dollar
  • Reduce up to $3,000 of ordinary income each year
  • Carry unused losses forward into future years

This strategy turns underperforming investments into real tax savings.

3️⃣ Don’t Lose Deductions to the Wash-Sale Rule

Selling a stock at a loss only helps if you follow the rules. Buying it back too soon can eliminate the deduction entirely. Learn how the wash-sale rule works, which assets it applies to, and how to avoid one of the most common (and costly) year-end mistakes.

4️⃣ Shift Income to Family Members in Lower Tax Brackets

Gifting appreciated stock to family members in lower tax brackets can legally reduce or eliminate capital gains taxes altogether. This strategy works especially well for retirees or adult children who aren’t subject to the kiddie tax.

5️⃣ Donate the Right Assets to Charity

When giving to a charity, what you donate matters:

  • Donating appreciated stock can eliminate capital gains and increase your deduction
  • Donating losing stock wastes potential tax benefits
  • Selling losing stock first and donating cash can create two deductions instead of one

This is a simple but powerful move most people overlook.

✅ Key Takeaways

  • Timing investment sales can save thousands in taxes
  • Losses aren’t failures — they’re planning opportunities
  • IRS rules matter, especially at year-end
  • Income shifting and smart giving are completely legal and highly effective
  • These strategies only work if done before December 31st

🔗 Questions? Connect with Me…

 


Episode 37 - Don't be a Sloth, Get a Roth

Show Notes

Roth IRAs for Construction Contractors

A Tax-Free Tool Every Builder Should Know About

In this episode, George Ghazarian breaks down why Roth IRAs are one of the most powerful — and often misunderstood — retirement tools for construction contractors, subcontractors, and owner-operators. Whether you’re running a crew, working solo, or scaling a construction business, this episode explains how to build a strong financial foundation using tax-free strategies.

What You’ll Learn

What a Roth IRA Is

A Roth IRA is a retirement account funded with after-tax dollars, allowing your investments to grow tax-free and be withdrawn tax-free in retirement. Unlike traditional IRAs, you pay taxes upfront and avoid them entirely later — a major advantage for contractors with long time horizons and fluctuating income.

Why Contractors Love Roth IRAs

Roth IRAs offer several benefits that align perfectly with the realities of construction work:

  • Tax-free growth with no IRS cut in retirement
  • No required minimum distributions (RMDs) at any age
  • Flexible access to contributions (not earnings) without penalties
  • Great during lower-income years, slow seasons, or early business stages
  • Ideal for long-term compounding, especially for contractors still building wealth

Contribution Rules & Income Limits

For 2025:

  • Up to $7,000 per year if under age 50
  • Up to $8,000 per year if age 50+
  • Contributions require earned income
  • Limits apply across all IRAs combined

Income phase-outs apply for direct Roth IRA contributions, meaning high-earning contractors may be blocked from contributing directly — which leads to advanced strategies discussed in this episode.

When a Roth IRA Makes Sense (and When It Might Not)

A Roth IRA is generally a strong fit if you expect your income to grow, want tax-free retirement withdrawals, and value flexibility with no forced distributions.

It may be less ideal if you’re in peak earning years and need immediate tax deductions — unless you’re using advanced planning tools like the backdoor Roth.

Real-world contractor examples are discussed to show how age, income level, and business stage affect the decision.

The Backdoor Roth Strategy

High-income contractors often use the Backdoor Roth to legally fund a Roth IRA even when income exceeds IRS limits. The process involves:

  1. Making a non-deductible contribution to a traditional IRA
  2. Converting that contribution into a Roth IRA

This strategy keeps tax-free retirement savings available even during big income years — but it comes with an important caveat.

The Pro-Rata Rule (Critical Warning)

If you already have pre-tax money in traditional IRAs, the IRS requires all IRA balances to be considered during a Roth conversion, potentially triggering unexpected taxes.

Common solutions for contractors include rolling pre-tax IRA funds into:

  • A Solo 401(k)
  • An employer-sponsored 401(k)

This helps “clear the runway” for clean backdoor Roth conversions.

Roth 401(k) vs Roth IRA (Bonus Discussion)

This episode also touches on Roth 401(k)s:

  • Funded with after-tax dollars
  • Tax-free withdrawals in retirement
  • No income limits for contributions
  • Higher annual contribution limits than Roth IRAs

For high-earning contractors or self-employed builders, Roth 401(k)s and Solo 401(k)s can dramatically increase tax-free savings potential.

2025 Contribution Highlights (Looking Forward)

  • Employee 401(k) deferral limit: $23,500
  • Standard catch-up (50+): $7,500
  • Enhanced catch-up (ages 60–63, plan permitting): potentially higher
  • Total employee + employer limit: ~$70,000
  • No income limits for Roth 401(k) contributions

Action Steps for Contractors

  • Review your current income and tax bracket
  • Decide between Roth IRA, backdoor Roth, or Roth 401(k)
  • Check existing IRA balances for pro-rata issues
  • Consider opening a Solo 401(k) if self-employed
  • Automate contributions and review annually

Final Takeaway

Construction is about building things that last — and your retirement strategy should be no different. Roth IRAs and Roth 401(k)s give contractors long-term tax control, flexibility, and powerful compounding that can save tens of thousands in taxes over time.

If you’re serious about building wealth beyond your tools, trucks, and jobsites, this episode gives you the blueprint.

🔗 Connect with Me

 


Episode 36 - Crypto Tax Strategies That Save Contractors Thousands (Part 2 of 2)

Show Notes

2025 Year-End Crypto Tax Strategies Contractors Should Use Before December 31

In this episode, George Ghazarian, CPA for construction contractors, breaks down the most powerful year-end cryptocurrency tax strategies available before December 31, 2025. Many contractors hold significant crypto positions personally or inside their businesses — and without planning, those gains can trigger massive tax bills.

This episode focuses on legal, IRS-approved strategies drawn from advanced tax guidance to reduce current-year taxes and reposition crypto holdings for future tax efficiency.

What You’ll Learn

Why Crypto Creates Big Tax Exposure

Cryptocurrency is treated as property by the IRS. Selling crypto, trading it, or even using it to purchase goods or services can trigger taxable events. With crypto prices reaching new highs in 2025, many contractors are sitting on large unrealized gains — and potentially large tax liabilities if they act without planning.

The good news: you are not stuck paying maximum tax if you plan before year-end.

Five Core Year-End Crypto Tax Strategies

  1. Tax-Gain Harvesting

Tax-gain harvesting is an underused strategy that can significantly reduce future taxes in high-income years.

If you expect:

  • Higher income in future years, and
  • Continued appreciation in crypto prices

You may benefit from selling appreciated crypto now, recognizing the gain, and immediately repurchasing it. This resets your cost basis at today’s higher value, shrinking taxable gains later.

Because crypto is classified as property, wash-sale rules do not apply, allowing immediate repurchase without waiting periods.

This strategy is best suited for contractors with strong profits and rising income trajectories, and less appropriate for short-term holdings or declining tax brackets.

  1. Tax-Loss Harvesting

Even in strong crypto markets, many investors still hold losing positions in:

  • Altcoins
  • NFTs
  • DeFi projects
  • Speculative tokens

Selling these assets before year-end allows losses to offset:

  • Capital gains realized during the year
  • Up to $3,000 of ordinary income

Again, crypto wash-sale rules do not apply, allowing immediate repurchase if desired. This strategy is ideal for cleaning up underperforming positions while improving tax efficiency.

  1. Donating Appreciated Crypto to Charity

Donating crypto directly to a qualified charity is one of the most tax-efficient moves available.

Benefits include:

  • Avoiding capital gains tax entirely
  • Receiving a charitable deduction equal to fair market value (if held over one year)

Key requirements:

  • Must donate to a 501(c)(3) organization
  • You must itemize deductions
  • Donations over $5,000 require a qualified appraisal
  • Deduction generally limited to 30% of AGI

This strategy works especially well for contractors who already give to charities, churches, or donor-advised funds.

  1. Gifting Crypto to Family Members

In 2025, you can gift up to $19,000 per recipient without filing a gift tax return. Married couples can gift $38,000 per recipient.

Gifting crypto:

  • Is not taxable to the giver
  • Is not taxable to the recipient
  • Does not require reporting if under annual limits

The recipient assumes your original cost basis, making this a powerful estate-planning and family wealth-transfer tool.

  1. Buying Crypto Inside a Retirement Account

Purchasing crypto inside tax-advantaged accounts can dramatically reduce long-term taxes.

Self-Directed IRAs

  • Traditional IRA: tax-deductible contributions, taxed later
  • Roth IRA: no deduction now, tax-free growth
  • Annual contribution limits apply

Existing crypto cannot be transferred into an IRA, but cash contributions can be used to purchase crypto inside the account.

Self-Directed Solo 401(k)s
For self-employed contractors with no full-time employees, Solo 401(k)s offer significantly higher contribution limits and can allow crypto when structured properly. These plans combine employee and employer contributions, allowing much larger tax-advantaged investments.

Bonus: Trader Tax Status (TTS) Explained

Trader vs. Investor

Most crypto participants are investors and receive capital gain or loss treatment. A smaller group may qualify for Trader Tax Status (TTS), which treats trading as a business.

TTS can allow:

  • Deduction of trading expenses on Schedule C
  • Home office and equipment deductions
  • Education and software write-offs

However, ordinary loss treatment is not automatic.

Section 475(f) Mark-to-Market Election

To convert capital gains and losses into ordinary income or losses, traders must also elect Section 475(f).

Benefits include:

  • No $3,000 capital loss limitation
  • No wash-sale rules
  • Ordinary loss treatment

You must qualify for TTS first before making this election.

What Qualifies for Trader Tax Status

The IRS uses case law and objective factors, focusing on:

Substantial Trading Activity

  • Typically 500+ trades per year
  • Frequent trading multiple days per week

Regular, Continuous Activity

  • Near-daily trading
  • Minimal gaps in activity

Short-Term Profit Intent

  • Profit from daily or weekly price movements
  • Most positions held under 31 days

Occasional trading, long-term investing, or sporadic activity generally does not qualify.

Election Deadlines (Critical)

  • Individuals: Election must be filed by April 15 of the year before the tax year begins
  • New entities: Election must be made within 75 days of formation

Missing the deadline means losing the benefit for that year.

Final Takeaways

Before December 31, contractors holding crypto should consider:

  • Harvesting gains to reset basis
  • Harvesting losses to offset gains and income
  • Donating appreciated crypto for double tax benefits
  • Gifting crypto to family tax-free
  • Using self-directed retirement accounts for future purchases

Advanced strategies like Trader Tax Status and Section 475(f) elections require strict qualifications and deadlines but can unlock substantial tax savings when done correctly.

 

🔗 Connect with Me

 


Episode 35 - Crypto Tax Strategies That Save Contractors Thousands (Part 1 of 2)

Show Notes

2025 Year-End Crypto Tax Strategies Contractors Should Use Before December 31

In this episode, George Ghazarian, CPA for construction contractors, breaks down the most powerful year-end cryptocurrency tax strategies available before December 31, 2025. Many contractors hold significant crypto positions personally or inside their businesses — and without planning, those gains can trigger massive tax bills.

This episode focuses on legal, IRS-approved strategies drawn from advanced tax guidance to reduce current-year taxes and reposition crypto holdings for future tax efficiency.

What You’ll Learn

Why Crypto Creates Big Tax Exposure

Cryptocurrency is treated as property by the IRS. Selling crypto, trading it, or even using it to purchase goods or services can trigger taxable events. With crypto prices reaching new highs in 2025, many contractors are sitting on large unrealized gains — and potentially large tax liabilities if they act without planning.

The good news: you are not stuck paying maximum tax if you plan before year-end.

Five Core Year-End Crypto Tax Strategies

  1. Tax-Gain Harvesting

Tax-gain harvesting is an underused strategy that can significantly reduce future taxes in high-income years.

If you expect:

  • Higher income in future years, and
  • Continued appreciation in crypto prices

You may benefit from selling appreciated crypto now, recognizing the gain, and immediately repurchasing it. This resets your cost basis at today’s higher value, shrinking taxable gains later.

Because crypto is classified as property, wash-sale rules do not apply, allowing immediate repurchase without waiting periods.

This strategy is best suited for contractors with strong profits and rising income trajectories, and less appropriate for short-term holdings or declining tax brackets.

  1. Tax-Loss Harvesting

Even in strong crypto markets, many investors still hold losing positions in:

  • Altcoins
  • NFTs
  • DeFi projects
  • Speculative tokens

Selling these assets before year-end allows losses to offset:

  • Capital gains realized during the year
  • Up to $3,000 of ordinary income

Again, crypto wash-sale rules do not apply, allowing immediate repurchase if desired. This strategy is ideal for cleaning up underperforming positions while improving tax efficiency.

  1. Donating Appreciated Crypto to Charity

Donating crypto directly to a qualified charity is one of the most tax-efficient moves available.

Benefits include:

  • Avoiding capital gains tax entirely
  • Receiving a charitable deduction equal to fair market value (if held over one year)

Key requirements:

  • Must donate to a 501(c)(3) organization
  • You must itemize deductions
  • Donations over $5,000 require a qualified appraisal
  • Deduction generally limited to 30% of AGI

This strategy works especially well for contractors who already give to charities, churches, or donor-advised funds.

  1. Gifting Crypto to Family Members

In 2025, you can gift up to $19,000 per recipient without filing a gift tax return. Married couples can gift $38,000 per recipient.

Gifting crypto:

  • Is not taxable to the giver
  • Is not taxable to the recipient
  • Does not require reporting if under annual limits

The recipient assumes your original cost basis, making this a powerful estate-planning and family wealth-transfer tool.

  1. Buying Crypto Inside a Retirement Account

Purchasing crypto inside tax-advantaged accounts can dramatically reduce long-term taxes.

Self-Directed IRAs

  • Traditional IRA: tax-deductible contributions, taxed later
  • Roth IRA: no deduction now, tax-free growth
  • Annual contribution limits apply

Existing crypto cannot be transferred into an IRA, but cash contributions can be used to purchase crypto inside the account.

Self-Directed Solo 401(k)s
For self-employed contractors with no full-time employees, Solo 401(k)s offer significantly higher contribution limits and can allow crypto when structured properly. These plans combine employee and employer contributions, allowing much larger tax-advantaged investments.

Bonus: Trader Tax Status (TTS) Explained

Trader vs. Investor

Most crypto participants are investors and receive capital gain or loss treatment. A smaller group may qualify for Trader Tax Status (TTS), which treats trading as a business.

TTS can allow:

  • Deduction of trading expenses on Schedule C
  • Home office and equipment deductions
  • Education and software write-offs

However, ordinary loss treatment is not automatic.

Section 475(f) Mark-to-Market Election

To convert capital gains and losses into ordinary income or losses, traders must also elect Section 475(f).

Benefits include:

  • No $3,000 capital loss limitation
  • No wash-sale rules
  • Ordinary loss treatment

You must qualify for TTS first before making this election.

What Qualifies for Trader Tax Status

The IRS uses case law and objective factors, focusing on:

Substantial Trading Activity

  • Typically 500+ trades per year
  • Frequent trading multiple days per week

Regular, Continuous Activity

  • Near-daily trading
  • Minimal gaps in activity

Short-Term Profit Intent

  • Profit from daily or weekly price movements
  • Most positions held under 31 days

Occasional trading, long-term investing, or sporadic activity generally does not qualify.

Election Deadlines (Critical)

  • Individuals: Election must be filed by April 15 of the year before the tax year begins
  • New entities: Election must be made within 75 days of formation

Missing the deadline means losing the benefit for that year.

Final Takeaways

Before December 31, contractors holding crypto should consider:

  • Harvesting gains to reset basis
  • Harvesting losses to offset gains and income
  • Donating appreciated crypto for double tax benefits
  • Gifting crypto to family tax-free
  • Using self-directed retirement accounts for future purchases

Advanced strategies like Trader Tax Status and Section 475(f) elections require strict qualifications and deadlines but can unlock substantial tax savings when done correctly.

🔗 Connect with Me


Episode 34 - How Contractors Can Write Off a 'Leased' Truck Like They Bought It

Show Notes

Most business owners think a leased vehicle can never qualify for Section 179 or bonus depreciation… but that’s not always true. In this video, we break down exactly when a lease does qualify and how a simple $1 buyout can unlock massive deductions.

Format

Intro
What Most People Think About Leases
The Exception: Capital Leases
The 4 IRS Tests for Capital Lease Classification
Real-World Examples
Tax Strategy Implications
 

💡 Overview

If you lease a vehicle, can you take Section 179?
Short answer: No… unless your lease qualifies as a capital (finance) lease.

Most leases are operating leases, and the IRS does not consider you the owner—so you can only deduct monthly lease payments.
But if your agreement functions more like a purchase, you may be eligible for:

✔️ Section 179
✔️ Bonus depreciation
✔️ Accelerated depreciation
✔️ Treating the asset as owned from Day 1

The key? Whether the lease has certain IRS triggers, like a bargain purchase option.

🚗 Operating Lease vs. Capital Lease

Operating Lease (Typical Dealer Lease)

  • IRS does NOT treat you as the owner
  • Standard lease with FMV buyout
  • You deduct lease payments only
  • ❌ No Section 179
  • ❌ No bonus depreciation

Capital Lease (Finance Lease)

  • IRS treats you as the owner
  • Functions like financing a purchase
  • ✔️ Section 179 allowed
  • ✔️ Bonus depreciation allowed
  • ✔️ Depreciation begins immediately
  • ❌ Lease payments not deductible (because it’s a purchase)

🔍 4 IRS Triggers That Make a Lease a Capital Lease

If ANY ONE of these is true, your “lease” is treated like a purchase:

1️⃣ Bargain Purchase Option ($1 Buyout) - The Big One

If you can buy the vehicle at lease end for a nominal amount (like $1), the IRS assumes it's really a purchase.

→ This is the most common way to qualify for Section 179 on a “lease.”

2️⃣ You’re Required to Buy the Vehicle

If the agreement forces you to take ownership at the end, it's not a lease.

3️⃣ Lease Term Covers the Vehicle’s Useful Life

Vehicles have a 5-year MACRS life.
If your lease covers basically that entire period → it’s a disguised purchase.

4️⃣ Present Value of Lease Payments ≈ Full Purchase Price

If the lease payments essentially equal the full cost of the vehicle, the IRS says you're purchasing it.

📌 Real-World Examples

Example A: Standard Operating Lease

  • 36-month term
  • FMV buyout
  • You return the car

Tax Result:
❌ No Section 179
❌ No bonus depreciation
✔️ Deduct lease payments

Example B: $1 Buyout Lease

  • 48-month payments
  • Guaranteed $1 end-of-term purchase

Tax Result:
✔️ Section 179 allowed
✔️ Bonus depreciation allowed
✔️ Treated as a purchase from Day 1
❌ Lease payments not deductible

Example C: SUV >6,000 lbs With $1 Buyout

If the vehicle exceeds 6,000 lbs GVWR and the lease is a capital lease:

You may deduct:
• Up to $1,220,000 with Section 179
• The remainder with bonus depreciation

Huge tax savings potential.

🧠 Tax Strategy Tips

If you WANT Section 179 or bonus depreciation:

  • Avoid standard operating leases
  • Ask dealers about $1 buyout or “capital lease” options
  • Make sure the lease explicitly states a bargain purchase option
  • Have your CPA review the agreement

If you DON’T want depreciation (or want simplicity):

  • Stick with a standard lease
  • Deduct payments
  • Avoid depreciation recapture later

⚠️ Warning

Do NOT claim Section 179 or bonus depreciation on a standard operating lease.

The IRS can disallow it if there’s:

  • No bargain purchase
  • No capital lease conditions
  • No ownership indicators

Always have your tax professional look at the actual contract.

📌 Final Takeaway

A regular lease?
→ ❌ No Section 179. No bonus depreciation.

A capital lease with a bargain purchase option (like $1)?
→ ✔️ Qualifies as a purchase.
→ ✔️ Section 179 + bonus allowed.

This difference can mean thousands—or even tens of thousands—of dollars in deductions.

🔗 Connect with Me

 


Episode 33 - How Contractors Can Offer Health Benefits Without Big Insurance Costs

Show Notes

🏗️ 2025 Health Insurance & Tax Strategies Every Contractor Should Know

If you run a construction business — whether it’s just you, you and your spouse, or a small crew — this episode is packed with medical plan strategies that can save you thousands in taxes before year-end.

George Ghazarian, CPA at Accounting Solutions LLP, breaks down how small business owners and contractors can use health reimbursement arrangements and other IRS-approved plans to cover medical costs, support their team, and keep more cash in their pocket.

🔹 What You’ll Learn in This Episode

✅ The five smartest 2025 medical plan strategies for small business owners
✅ How to make your health insurance 100% tax-deductible
✅ The difference between Section 105 HRAs, QSEHRAs, and ICHRAs
✅ What S Corp owners must do before December 31 to get their health insurance deduction
✅ How to qualify for the 50% Small Business Health Insurance Tax Credit
✅ Year-end action steps to lock in your 2025 deductions

📅 Key 2025 Health Plan Limits

QSEHRA Reimbursements:

  • $6,350 (self-only)
  • $12,800 (family coverage)

S Corp Deduction Rule:

  • Must be paid or reimbursed and included on your W-2 by December 31, 2025

Health Insurance Tax Credit:

  • Up to 50% of premiums (for businesses under 25 FTEs with avg wages under $25,000)

💡 Quick Takeaways

  • Reimburse 2025 medical expenses now under Section 105
  • Get your QSEHRA or ICHRA set up for 2026
  • Fix your S corp health insurance reporting before year-end
  • Check if your team qualifies for the 50% small business health insurance credit

🔗 Connect with Me

🌐 Website:
https://accountingsolutionsllp.com

💼 LinkedIn:
https://www.linkedin.com/in/george-ghazarian-asllp/

📅 Book a Strategy Call:
https://accountingsolutionsllp.com/appointment/

🏗️ 2025 Health Insurance & Tax Strategies Every Contractor Should Know

If you run a construction business — whether it’s just you, you and your spouse, or a small crew — this episode is packed with medical plan strategies that can save you thousands in taxes before year-end.

George Ghazarian, CPA at Accounting Solutions LLP, breaks down how small business owners and contractors can use health reimbursement arrangements and other IRS-approved plans to cover medical costs, support their team, and keep more cash in their pocket.

🔹 What You’ll Learn in This Episode

✅ The five smartest 2025 medical plan strategies for small business owners
✅ How to make your health insurance 100% tax-deductible
✅ The difference between Section 105 HRAs, QSEHRAs, and ICHRAs
✅ What S Corp owners must do before December 31 to get their health insurance deduction
✅ How to qualify for the 50% Small Business Health Insurance Tax Credit
✅ Year-end action steps to lock in your 2025 deductions

📅 Key 2025 Health Plan Limits

QSEHRA Reimbursements:

  • $6,350 (self-only)
  • $12,800 (family coverage)

S Corp Deduction Rule:

  • Must be paid or reimbursed and included on your W-2 by December 31, 2025

Health Insurance Tax Credit:

  • Up to 50% of premiums (for businesses under 25 FTEs with avg wages under $25,000)

💡 Quick Takeaways

  • Reimburse 2025 medical expenses now under Section 105
  • Get your QSEHRA or ICHRA set up for 2026
  • Fix your S corp health insurance reporting before year-end
  • Check if your team qualifies for the 50% small business health insurance credit

🔗 Connect with Me

🌐 Website:
https://accountingsolutionsllp.com

💼 LinkedIn:
https://www.linkedin.com/in/george-ghazarian-asllp/

📅 Book a Strategy Call:
https://accountingsolutionsllp.com/appointment/

 


Episode 32 - 2025 Retirement Plan Options and Limits

Show Notes

💰 2025 Retirement Plan Limits Every Contractor Should Know

Are you self-employed, a contractor, or a small business owner? The IRS just released the 2025 retirement contribution limits — and the numbers are higher than ever. In this episode, George Ghazarian, CPA at Accounting Solutions LLP, breaks down what’s new, what’s smart, and how you can legally lower your 2025 taxes while stacking long-term wealth.

Whether you run a one-person S corp or manage a small crew, this walkthrough helps you understand your best retirement plan options — from Solo 401(k)s and SEP IRAs to new small business tax credits under SECURE 2.0.

🔹 What You’ll Learn in This Episode

- 2025 contribution limits for Solo 401(k), SEP IRA, SIMPLE IRA, and Defined Benefit Plans
- How much you can actually deduct as both employer and employee
- Key 2025 deadlines — and what has to be done by December 31
- The powerful new small business retirement plan tax credits (up to $15K!)
- When a Roth IRA conversion makes sense — and when it doesn’t
- How contractors can use retirement plans to smooth out income volatility and reduce taxes

  1. Intro: Why 2025 is a huge year for retirement planning
  2. Why contractors need to pay attention to contribution limits
  3. Solo 401(k): The powerhouse for self-employed pros
  4. SEP IRA: Simple, flexible, and tax-efficient
  5. SIMPLE IRA: Great for small teams and growing businesses
  6. Defined Benefit Plans: Advanced savings for high earners
  7. New tax credits under SECURE 2.0 (free money alert)
  8. Key deadlines and strategy tips
  9. Roth conversions: When they’re worth it
  10. Wrap-up: How to make your 2025 retirement plan work for you

📅 Key 2025 Contribution Limits

Solo 401(k)

  • $23,500 employee deferral
  • $31,000 with catch-up (50–59, 64+)
  • $34,750 with “super” catch-up (ages 60–63)
  • Total combined limit up to $81,250

SEP IRA — Up to 25% of compensation, capped at $70,000
SIMPLE IRA — $16,000 deferral + $3,500 catch-up
Defined Benefit Plans — Varies; often six figures for high-income earners

If you want to make employee deferrals for 2025, your plan must be set up by December 31, 2025.
Employer contributions can usually wait until your 2025 tax filing deadline.

🔗 Connect with Me

 

 


Episode 31 - Cost Seg for Contractors: The Tax Hack You're Missing

Show Notes
  1. What Cost Segregation Actually Is

A simple explanation of how cost segregation breaks a building into shorter-lived components (5, 7, and 15-year property) to accelerate depreciation.

  1. Unlock Hidden Cash Flow

How a cost seg study uncovers “buried value” inside your property and converts it into immediate tax deductions.

  1. Fast-Track Savings With the “Tax Time Machine”

Why cost segregation can pull 20–30% of future depreciation into Year 1, giving contractors real, spendable cash today.

  1. Cash Flow Surge: The Contractor’s Caffeine Boost

How accelerated depreciation strengthens working capital, smooths out cash-flow spikes, and gives your business more breathing room.

  1. The Precision Scalpel of Tax Strategy

Why cost segregation is a highly engineered, documentation-heavy tax strategy that precisely reduces tax liability.

  1. Audit Protection: Clarity Armor

How the IRS’s preferred method — detailed engineering-backed studies — provides audit defense rather than audit risk.

  1. Who Should Consider Cost Seg in 2025

A quick list of property owners and project types that can see the biggest benefit from a cost segregation study — including retroactive opportunities.

🧰 Who This Episode Is For

  • General contractors
  • Builders
  • Developers
  • Rental property owners
  • Trades business owners
  • Anyone who owns commercial or residential investment property

If you operate out of your own building or you’ve renovated, bought, or built property — this strategy applies to you.

📈 Key Takeaways

  • Cost segregation accelerates depreciation to increase cash flow now.
  • The strategy can unlock 30% or more of your property’s cost in Year 1.
  • Contractors can use it to strengthen liquidity, fund growth, and reduce tax burden.
  • It’s IRS-approved, engineering-based, and backed by strong documentation.
  • 2025 is a prime year to take advantage of cost segregation opportunities.

🔗 Connect with Me

 


Episode 30 - Unlock the Paid Family Leave Credit - Don't Leave Money on the Table

Show Notes

Most contractors have never even heard of the Employer Credit for Paid Family & Medical Leave — but starting in 2026, this credit becomes permanent and gets expanded, making it one of the most valuable tax breaks available to construction businesses with employees.

In this episode, George breaks down exactly how the credit works, what’s changing, and how contractors can use it to retain good workers, offer better benefits, and cut their tax bill at the same time.

📌 Key Takeaways

✔ The IRS will reimburse you 12.5%–25% for paid family or medical leave

If you pay your crew while they take time off for:

  • A new baby
  • Medical recovery
  • Caring for a family member

You can qualify for a federal tax credit on the wages you paid.

✔ Starting in 2026, the credit becomes PERMANENT

No more temporary extensions. No more guessing whether Congress will renew it.
It’s locked in long-term — you can plan around it.

✔ Two ways to qualify beginning in 2026

You can now claim the credit by either:

1️⃣ Paying your employees during leave (the current method), or
2️⃣ Paying premiums for a paid family leave insurance plan

This second option is huge for contractors who want benefits without large cash outflow for wages.

✔ Why contractors should care

  • Helps retain good operators, foremen, and laborers
  • Lets small contractors offer big-company-style benefits
  • Gives you a federal tax break for taking care of your crew
  • Strengthens recruiting and retention in a competitive labor market

✔ Example: How much money are we talking?

If you pay an employee $6,000 during a six-week medical recovery leave, the IRS may give you back up to $1,500 as a tax credit.

This isn’t a deduction — it’s a dollar-for-dollar credit.
Real cash savings.

🧰 What Contractors Should Do Now

To prepare for 2026:

  1. Draft a written paid leave policy (required to claim the credit).
  2. Decide between paying leave wages or using paid leave insurance.
  3. Train your office staff or bookkeeper on the upcoming rules.
  4. Use this benefit as a hiring and retention advantage.

Intro
Hook: IRS will reimburse contractors for paid leave
What the credit is
What changes in 2026
Why contractors should care
Quick tax credit example
What to do next
Outro

👷‍♂️ For Contractors Only

If you run a construction company and want more tax strategies for:

  • Cash flow
  • Payroll
  • Energy credits
  • Depreciation updates
  • Job costing
  • Entity structure

Subscribe — and drop your questions in the comments.

🔗 Connect with Me

 


Episode 29 - The $30k Fueling Credit Ending in 2026

Show Notes

If you're in construction this episode breaks down one of the most valuable, and most overlooked, tax incentives available right now: the IRS Section 30C Alternative Fuel Vehicle Refueling Property Credit.

This credit can give your business up to $30,000 per site for installing qualified EV charging or alternative-fuel infrastructure. But the clock is ticking:
⏳ It expires for property placed in service after June 30, 2026.

In this episode, we’ll cover what the credit is, who qualifies, how it works, and why now is the time to act.

  • The industry is shifting: EV adoption, alternative fuels, and infrastructure demands.
  • A major tax incentive is available — but only for a limited time.
  • Section 30C offers 30% of installation costs, up to $30,000 per site.
  • Applies to:
    • EV chargers
    • Natural gas fueling systems
    • Propane
    • Hydrogen
    • Biodiesel
  • Easy to claim — no lottery, no grant, no waiting.
  • Deadline: June 30, 2026
  • Only ~7.5 months left for most businesses to fully plan and install in time.

This credit is especially relevant for:

Contractors & Trades

  • Adding chargers at yards, shops, or for service vehicles
  • Meeting client demand for EV-ready builds

Fleet Operators

  • Installing natural gas, propane, or electric fueling systems
  • Piloting electric or alternative-fuel trucks
  • Reducing long-term fuel costs

Developers

  • Apartment complexes
  • Industrial parks
  • Retail centers
  • Office buildings
  • Logistics hubs
  • Adding infrastructure now = huge future value + federal subsidy

You get:

  • 30% of total installation cost
  • Up to $30,000 per site
  • Covers:
    • Equipment
    • Electrical upgrades
    • Trenching
    • Labor
    • Engineering
    • Permitting
    • Site prep

Plus, it can stack with:

  • State incentives
  • Utility company rebates
  • IRA programs
  • Bonus depreciation + MACRS

A $100,000 installation may effectively cost $30,000–$40,000 after all benefits.

For the IRS, “placed in service” means:

  • Fully installed
  • Functional
  • Inspected
  • Energized
  • Ready for use

Not simply purchased.

Typical timelines:

  • Planning/design: 60–90 days
  • Equipment lead time: 30–90 days
  • Installation: weeks to months
  • Utility approval: unpredictable

Translation: If you start late, you may miss the credit entirely. Start now.

A $100,000 EV charging install might get:

  • $30,000 federal credit
  • $10,000–$50,000 in state incentives
  • $5,000–$40,000 in utility rebates
  • Significant depreciation write-offs

Net cost could drop to $20,000–$40,000.
Multiple sites = multiple $30k credits.

Step 1: Assess your charging or fueling needs
Step 2: Get a site evaluation
Step 3: Collect a full cost estimate
Step 4: Confirm eligibility with a tax professional
Step 5: Begin installation early and avoid last-minute delays

The industry is evolving fast. Businesses that prepare now will be ahead.
Don’t wait until incentives disappear and costs rise. The window is closing.

Need help calculating savings, modeling your project ROI, or confirming eligibility?
Reach out — getting this right could return tens of thousands to your business.

Don’t leave free money on the table. Start planning now.

🔑 Key Takeaways

  • Up to $30,000 per site for EV/alt-fuel infrastructure
  • Stacks with state & utility incentives
  • Deadline: June 30, 2026
  • Planning needs to start ASAP
  • Huge opportunity for contractors, fleets, and developers

 


Episode 28 - The Contractor's Guide to the 20% Write-off

Show Notes

If you own a construction business — S corp, LLC, or sole proprietorship — this episode could save you tens of thousands in taxes.

We break down the Section 199A 20% pass-through deduction, how it works, when it phases out, and three year-end moves that can help you lock in the full deduction before December 31, 2025.

The Section 199A deduction is now permanent under the new tax bill — but the benefit starts to phase out once your taxable income passes:

Filing Status

Phase-Out Begins

Fully Phased Out

Single / Head of Household

$197,300

$247,300

Married Filing Jointly

$394,600

$494,600

💡 The phase-out range is $50,000 for single filers and $100,000 for married filers.
If you’re over those limits, your deduction can shrink fast — or disappear entirely (depending on your business type).

Key Points

  • The Section 199A 20% deduction is now permanent — but not guaranteed for everyone.
  • If your 2025 taxable income exceeds $197,300 (single) or $394,600 (married), your deduction starts to phase out.
  • George explains what this means and why contractors need to act before year-end.

⚒️ Move #1: Harvest Capital Losses

  • Selling property or investments for a gain can push your income over the 199A limit.
  • Strategy: Sell losing investments before December 31 to offset those gains.
  • ✅ Example: A contractor dropped taxable income below the limit and doubled their 199A deduction (from ~$10,900 to $20,000) by harvesting $40,000 in losses.
  • Bottom line: Smart timing on investment sales can save thousands in taxes.

💸 Move #2: Make Charitable Contributions

  • Charitable giving lowers your taxable income — and may restore your full 20% deduction.
  • Give smarter:
    • Donate appreciated stock instead of cash to avoid capital gains.
    • Prepay 2026 charitable gifts before December 31, 2025.
  • ✅ Example: A $40K donation in appreciated stock reduced taxable income and increased the 199A deduction — for $13,595 in total savings.
  • Tip: Combine tax planning with generosity — and get a double benefit.

🚛 Move #3: Buy Business Assets Before Year-End

  • Use bonus depreciation or Section 179 expensing to fully write off new equipment, trucks, or tools.
  • These deductions can drop you below the 199A threshold while refreshing your business assets.
  • ✅ Example: A contractor over the income limit bought $50K in new equipment and saved nearly $24,000 in total taxes.
  • Pro tip: Equipment must be purchased and placed in service before December 31, 2025 to count.

📊 Summary

Key takeaways:

  1. The 20% deduction under Section 199A is permanent — but income limits still apply.
  2. Stay under $197K / $394K in taxable income to keep it.
  3. Before December 31, 2025, consider:
    • Harvesting capital losses
    • Making charitable contributions
    • Buying and placing equipment in service

These moves can restore or increase your 199A deduction and save thousands.

🎯 Outro & Call to Action

  • Like 👍 the video if you found it helpful.
  • Subscribe for more contractor tax strategies and small business planning tips.
  • Comment if you want a follow-up video on how to calculate your 199A deduction step-by-step.
  • “Smart contractors build wealth not just on the job site, but on the balance sheet too.” 💪

📚 Resources Mentioned

  • IRS Section 199A Overview: irs.gov/qualified-business-income-deduction
  • IRS Publication 535: Business Expenses (for depreciation & 179 details)
  • Charitable Stock Donation Guide (Fidelity or Schwab)
  • Section 179 Calculator: section179.org

🔗 Connect with Me

 


Episode 27 - How Contractors are Avoiding Capital Gains Taxes

Show Notes

If you’re a contractor, builder, or developer sitting on appreciated real estate, equipment, or land — this episode is a must-watch.
We break down how you can legally eliminate capital gains taxes on your next project using the newly revived Opportunity Zone program (thanks to the OBBBA).

Learn how to sell appreciated assets, reinvest through a Qualified Opportunity Fund (QOF), and build projects that grow tax-free — all while revitalizing communities and keeping more of your hard-earned money.

Whether you’re flipping properties, developing multi-family projects, or breaking ground in rural areas, the new 2027 “QOZ 2.0” rules could unlock one of the biggest wealth-building opportunities for contractors in decades.

🧱 What You’ll Learn

  • How to turn capital gains into tax-free investments
  • Step-by-step: selling appreciated assets and reinvesting within 180 days
  • What a Qualified Opportunity Fund (QOF) is and how to use it
  • How the new 2027 Opportunity Zone rules change the game
  • The huge tax perks for rural builders under QROFs
  • How to structure your next deal to maximize tax efficiency and growth

📅 Episode Breakdown

The new way contractors can avoid capital gains taxes
Selling appreciated assets the smart way
How investing through a QOF turns taxes into equity
What’s changing in 2027 (QOZ 2.0 explained)
Big breaks for rural builders (QROFs)
How to make your next project 100% tax-free

💡 Key Takeaway

These aren’t loopholes — they’re IRS-approved incentives designed to reward builders who invest in America’s communities.
With the right timing and structure, you can build wealth, cut taxes, and create long-term impact — all in one move.

🧰 Resources Mentioned

  • IRS Qualified Opportunity Zones Program
  • 2027 “QOZ 2.0” expansion under the One Big Beautiful Bill (OBBBA)
  • Qualified Rural Opportunity Funds (QROFs)

🧠 For Contractors Who Want More

If you’re planning a sale, new build, or major reinvestment — now’s the time to talk strategy.
👉 Subscribe for more episodes on tax-efficient construction investing, and let’s build something smarter together.

🔗 Connect with Me

 


Episode 26 - Pay Yourself Tax-Free: The Accountable Plan Every Contractor Needs

Show Notes

🎥 How Contractors Can Pay Themselves Tax-Free: Setting Up an Accountable Plan

💬 Description

Are you paying for business expenses out of pocket — gas, home office, phone, travel — without reimbursing yourself the right way?
In this video, I’ll show you exactly how to create and implement an Accountable Plan so you can reimburse yourself tax-free and reduce your business’s taxable income.

By the end of this video, you’ll know how to:
✅ Write a compliant accountable plan policy
✅ Reimburse yourself legally and tax-free
✅ Avoid IRS red flags
✅ Keep clean, audit-ready records
✅ Automate reimbursements for your contractor or S corp business

  1. Why accountable plans save you serious tax money
  2. What Is an Accountable Plan? How reimbursements work tax-free
  3. Who Needs an Accountable Plan? Contractors, S-corps, and small business owners
  4. How To Implement One: Step-by-step setup
  5. Real-World Example: Reimbursing mileage and expenses
  6. Common Mistakes: What to avoid with the IRS
  7. Automate & Stay Compliant: Tools and pro tips
  8. Outro & Free Template: Take action and get your plan started

🧾 Free Download

🎁 Grab your free Accountable Plan Template here:
👉 https://accountingsolutionsllp.com/accountable-plan/

Use this to set up your own compliant plan today — it’s simple, IRS-approved, and 100% legal.

🧮 What You’ll Learn

  • How to pay yourself back tax-free
  • How accountable plans work for S-Corps and contractors
  • What expenses you can reimburse (home office, mileage, phone, tools, etc.)
  • How to write your own policy and track expenses
  • Mistakes that trigger IRS scrutiny
  • The best apps and software for automation

⚠️ Avoid These Mistakes

🚫 Paying lump sums without receipts
🚫 Forgetting to return excess reimbursements
🚫 Mixing personal and business expenses
🚫 Not documenting purpose, date, or mileage

💼 Pro Tips

  • Use apps like MileIQ or Everlance for mileage tracking
  • Use QuickBooks Online, Gusto, or Google Sheets for reimbursements
  • Store your written plan and receipts digitally (Google Drive, Dropbox, etc.)
  • Review your plan annually for compliance

🔗 Connect with Me

 

 


Episode 25 - How Contractors Can Maximize 2025 Vehicle Deductions

Show Notes

Episode Summary

In this episode, George breaks down the One Big Beautiful Bill Act (OBBBA) and how it creates massive new write-off opportunities for contractors, builders, and tradespeople in 2025. Learn how the timing of your vehicle purchase, the type of vehicle you buy, and even one business mile before year-end can mean tens of thousands in tax savings.

George introduces the OBBBA and how it changes vehicle write-offs for 2025.

How contractors can use business vehicles as powerful tax deduction tools — including full write-offs on new or used vehicles placed in service by December 31, 2025.

The two critical requirements to qualify before year-end: own the vehicle and drive at least one business mile before midnight on December 31.

The sweet spot for tax savings. Trucks and SUVs with GVWR >6,000 lbs can qualify for 100% bonus depreciation or Section 179 expensing.

How heavy pickups and cargo/passenger vans qualify for full deductions up to $2.5 million. Examples of what counts, what doesn’t, and how to stay compliant.

Why light-duty vehicles under 6,000 lbs hit depreciation caps — and how to avoid wasting deduction potential.

OBBBA ends EV credits after September 30, 2025 — why traditional gas or diesel vehicles may now be the smarter move for contractors.

George’s CPA checklist for locking in your deduction: confirm with your accountant, verify GVWR, take delivery, drive once, and document everything.

Final recap and a call to action — buy before year-end, go heavy, and make the tax code work for your business.

Key Takeaways

- 100% deduction possible on qualifying heavy vehicles placed in service by Dec 31, 2025
- Lighter vehicles face strict IRS depreciation limits
- Section 179 expensing and bonus depreciation still apply under OBBBA
- EV tax credits end September 2025
- Documentation and timing are everything

🔗 Connect with Me

 

 


Episode 24 - S-Corp Election

Show Notes

🔹 What You’ll Learn

  • What an S-Corporation actually is (and what it’s not)
  • How to save thousands in self-employment taxes as a contractor
  • Step-by-step walkthrough of IRS Form 2553
  • When and how to file (and what to do if you missed the deadline)

George introduces the benefits of electing S-Corp status and who it’s right for (contractors earning $80K–$100K+).

Learn how S-Corp status helps reduce self-employment taxes by splitting income into salary and distributions.

Timing rules for new and existing businesses — and how to qualify for late election relief.

Detailed line-by-line guide using “Ghazarian Construction LLC” as an example:

  • Business info, EIN, and formation details
  • Shareholder section (including how to fill if you’re the only owner)
  • Fiscal year selection
  • Late election relief explanation
  • Signing and officer details

Where to send or fax your completed Form 2553 and what confirmation notice to expect (IRS CP261).

Next steps after S-Corp approval — payroll setup, quarterly filings, and how Accounting Solutions LLP can help.

💼 Resources Mentioned

🔗 Connect with Me

 


Episode 23 - 2025 Best Project Management Software

Show Notes

George opens with a powerful truth — most contractors lose profit not from poor craftsmanship, but poor project management. He sets the stage for why modern construction businesses must get serious about software systems that organize chaos and improve margins.

Key takeaway:
➡️ The right project management software turns your jobs from reactive to proactive.

Construction projects juggle endless moving parts: labor, materials, RFIs, inspections, change orders, and documentation. Without structured tools, things fall through the cracks.
George explains how software gives visibility, control, and automation — transforming chaos into predictable profits.

Key takeaway:
➡️ If you’re still running jobs from email or spreadsheets, you’re choosing chaos.

Summary:
George outlines 5 essential capabilities every construction PM tool should have:

  1. Document & drawing control
  2. Task & schedule management
  3. Change-order & cost tracking
  4. Mobile/field access
  5. Collaboration & reporting

He stresses the importance of field testing before rolling out company-wide.

Key takeaway:
➡️ Your software is only as good as its adoption in the field.

  1. Procore — Best Overall
    ✅ Full-featured, field-to-office collaboration, excellent support
    ⚠️ Higher cost, learning curve
    Best for: mid-size to large GCs
  2. Buildertrend — Best for Home Builders & Remodelers
    ✅ Strong client portals, scheduling, selections
    ⚠️ Not ideal for large commercial jobs
    Best for: residential/remodel contractors
  3. Autodesk Build (Autodesk Construction Cloud) — Best for BIM & Complex Projects
    ✅ Excellent for design-build and enterprise-level teams
    ⚠️ Costly, requires training
    Best for: commercial, design-build firms
  4. Houzz Pro — Best for Remodelers
    ✅ Client communication, estimating, selection tools
    ⚠️ Lacks depth for commercial GCs
    Best for: small-scale, renovation-focused firms
  5. ServiceTitan — Best for Hybrid Construction + Field Service
    ✅ Great for job costing, scheduling, mobile integration
    ⚠️ Costly, complex onboarding
    Best for: contractors combining service + construction operations

Key takeaway:
➡️ Choose software that fits your business model, not just one with the most features.

George shares a framework for evaluating tools:

  1. Match software to your company size & complexity.
  2. Prioritize integration with accounting & field tools.
  3. Balance budget vs. ROI.
  4. Run pilot projects before scaling.
  5. Focus on value outcomes — fewer errors, faster closeouts, higher margins.
  6. Embrace change management — process improvement matters as much as the tech.

➡️ Software doesn’t fix chaos — systems and accountability do.

Recommended Action Plan:

  • Pick 2–3 tools and schedule demos this week.
  • Identify your top pain points.
  • Ask vendors directly how they’ll solve them.
  • Assign a software champion (PM or foreman).
  • Roll out on one project — commit 100%.
  • After 90 days, measure results: fewer errors, faster delivery, clearer job costs.

 


Episode 22 - Offers: Scaling Your Business Part 3

Show Notes

In this episode of the Scaling Series for Construction Business Owners, George breaks down one of the biggest profit-killers in the trades: weak offers.
You’ll see how two contractors — running the same ad with the same budget — can get 22x different results simply because one used a “Strong Offer” while the other sounded like every other roofer on Google.

What You’ll Learn

  1. The Difference Between a Commodity and a Strong Offer
  • Why “Free Estimates” make you blend in with the crowd
  • How a single irresistible offer can separate you from every competitor
  1. The Real Numbers Behind Offer Power
  • $10,000 ad spend, identical reach — and yet one contractor makes $70,000
  • Why response rate, close rate, and ROAS all multiply when your offer hits right
  1. The Psychology Behind Why Offers Win
  • Buyers crave certainty, not features
  • The three elements every winning offer includes:
    1. Risk reversal
    2. Value stacking
    3. Urgency
  1. How to Build Your Own Strong Offer
  • Add a “value bomb” (bonus, upgrade, or freebie)
  • Guarantee results (remove the customer’s risk)
  • Add urgency (scarcity, deadline, or incentive)
  • Example:
    “Book before Dec 15th and get free gutter guards + a lifetime leak warranty.”

Real Results Breakdown

Metric

Commodity

Strong Offer

Difference

Ad Spend

$10,000

$10,000

—

Impressions

300,000

300,000

—

Response Rate

0.0133%

0.0333%

2.5x

Appointments Booked

40

100

+60

Show Rate

75%

75%

—

Appointments Closed

5

28

5.6x

Revenue

$12,500

$70,000

22.4x

ROAS

1.25x

7x

🔥

Key Takeaway

Don’t scale bad math.
If your offer doesn’t grab attention and crush risk, no amount of ad spend will save it.
A Strong Offer is how you stop competing on price and start scaling on value.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 


Episode 21 - Tax Strategy Quick Wins

Show Notes

Before 2025 closes, there are powerful — and totally legal — tax strategies contractors can use to save thousands.
In this episode, George breaks down six smart year-end moves that help builders, tradespeople, and small business owners keep more of their hard-earned money.

No fluff, no loopholes — just proven IRS-approved tactics that work.

What You’ll Learn

  1. Prepay Expenses Using IRS Safe Harbor
    Deduct up to 12 months of next year’s expenses — rent, insurance, and leases — right now.
  2. Stop Billing Until January
    Delay sending invoices to legally defer income into 2026.
  3. Buy and Place Equipment in Service Before December 31
    Use Section 179 and bonus depreciation to instantly write off tools, trucks, and tech.
  4. Use Your Credit Cards Strategically
    Learn when a credit card swipe counts as an immediate deduction.
  5. Claim Every Legitimate Deduction
    Why “too many deductions” is a myth — and how Net Operating Losses can help you later.
  6. Leverage Qualified Improvement Property (QIP)
    Maximize write-offs for interior improvements like HVAC, lighting, and drywall.

Quick Recap

  • Prepay 2026 expenses now
  • Hold off December billing
  • Buy and use new equipment before Dec 31
  • Swipe your business card before year-end
  • Take all legit deductions
  • Use QIP rules for interior improvements

Ideal For

  • General Contractors
  • Subcontractors
  • Builders & Remodelers
  • Trade Business Owners (HVAC, Plumbing, Electrical, etc.)

 

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 20 - R&D Tax Credits for Construction

Show Notes

Summary

R&D Tax Credits for Construction

George and Anselmo discussed the applicability of R&D tax credits to construction companies, with Anselmo explaining that construction is one of the most innovative industries, involving technical problem-solving on job sites rather than in labs. Anselmo clarified that R&D tax credits are not limited to scientific industries and can apply to various trades, including HVAC, electrical, and plumbing, when companies are developing or improving methods or materials. He advised contractors to document their R&D activities through project files, CAD designs, change orders, job costing, payroll records, and other relevant data to demonstrate technical decision-making and problem-solving processes to the IRS.

R&D Documentation for Tax Benefits

George and Anselmo discussed the documentation and tracking processes for R&D activities to qualify for tax benefits. Anselmo explained that companies should document their R&D efforts through methods like job codes, Excel sheets, or notes, and emphasized the importance of clear communication with respect to IRS compliant documentation. He noted that while the first year of tracking can be challenging, processes often improve over time with better organization and involvement of project managers and company leaders. Anselmo also highlighted that companies can apply for the R&D program for the current year and the past three years, making it crucial to maintain accurate records.

R&D Tax Credits for Construction

George and Anselmo discussed tax credits for construction companies. Anselmo explained that for every $100,000 of qualifying R&D expenditures, companies can receive approximately 20% in credits between federal and California programs. This includes 15% on salaries and 25% on material expenses. They can claim credits for up to three previous years and the current year, with the ability to amend returns for 2022-2024 and file for 2025 the following year.

Construction Tax Credits Overview

George and Anselmo discussed various tax credits available to construction companies, with the R&D credit being the most significant. Anselmo explained that companies can claim the R&D credit for up to three years after filing, and it is available for both federal and California taxes. They also covered other credits like the 179D for energy-efficient buildings, Work Opportunity Tax Credits, and Section 179 expensing. George emphasized the importance of consulting industry-specific experts for R&D credits, as some tax firms specialize in certain industries. Anselmo shared his experience working with small businesses and explained the Tech Clean California program, which provides rebates for energy-efficient retrofits in California.

Understanding R&D Tax Credits

George and Anselmo discussed utility credits, focusing on New York's tax credit program for high electricity users, which is not available in California. Anselmo explained the qualification process, emphasizing that contractors should not assume they do not qualify for R&D tax credits. He advised listeners to contact URC Refunds for a free 10-15 minute qualification call, and highlighted that the company only gets paid when clients receive approved tax credits.

 


Episode 19 - Augusta Rule

Show Notes

If you own a construction company, you’re probably paying more in taxes than you need to. In this episode, George Ghazarian, CPA and construction industry tax strategist, breaks down the Augusta Rule — a powerful, 100% legal tax strategy that can save business owners thousands of dollars each year.

You’ll learn how to use this rule to rent your personal home to your business for meetings, training sessions, or strategy retreats — and receive that income tax-free.

Stay until the end for a real-life case study showing how one contractor saved over $10,000 just by applying this strategy correctly.

Episode Breakdown

Origin story from Augusta, Georgia, and the IRS provision that lets homeowners rent their home for 14 days or less tax-free.

How S-corp and LLC owners can rent their homes to their own companies for legitimate business events — saving thousands annually.

The five compliance steps you must follow to make it fully IRS-proof:

  1. Document fair market rent
  2. Use a written rental agreement
  3. Have a real business purpose
  4. Pay yourself via business check
  5. Skip the 1099 (under 15 days)

Common pitfalls that can ruin the deduction — fake meetings, inflated rent, poor documentation, or exceeding 14 days.

Why every construction business owner should talk to their CPA about this strategy before year-end.

Key Takeaways

  • The Augusta Rule (IRC §280A(g)) lets you rent your personal home tax-free for up to 14 days per year.
  • Your business can deduct the rent if it’s for legitimate business purposes.
  • Proper documentation and fair rental rates are essential for IRS compliance.
  • Can easily save $3,000–$10,000+ per year in taxes.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 18 - The Secret IRS Rule that Instantly Deletes Tax Penalties

Show Notes

Missed your 2025 estimated tax payments? Don’t panic — there’s a legal, IRS-approved strategy that can erase those underpayment penalties almost instantly. In this video, George breaks down how to use a 60-day retirement account rollover to make your tax penalties disappear — while staying 100% compliant.

What You’ll Learn

  • Why the IRS underpayment penalty rate (currently 7% compounded daily) hurts more than you think.
  • How to use a 60-day IRA or 401(k) rollover to retroactively fix missed estimated tax payments.
  • Why withholding is treated differently from estimated payments — and how that helps you “time-travel” your taxes.
  • Common mistakes to avoid with this strategy (like missing the 60-day rule or doing multiple rollovers).
  • A bonus tip for seniors using RMDs to eliminate year-end penalties.

Important Notes

  • The 60-day redeposit rule is strict — miss it and your withdrawal becomes taxable.
  • You can only do one 60-day rollover per 12 months per taxpayer.
  • Always use direct withholding through your retirement custodian — don’t send payments manually.
  • This strategy is fully IRS-compliant, but consult your CPA before taking action.

Resources Utilized

  • IRS Topic No. 306: Estimated Tax Penalty Rules
  • IRS Publication 505: Tax Withholding and Estimated Tax
  • IRS Form 2210: Underpayment of Estimated Tax by Individuals

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 17 - Want to Grow Your Construction Company Faster? Try This.

Show Notes

In this episode, George breaks down exactly how contractors can grow their businesses by stepping into government contracting — one of the most stable, lucrative, and scalable areas in construction. You’ll learn what agencies look for, where to find verified bid opportunities, and how to position your company for long-term, recession-proof success.

 

What You’ll Learn

  1. Why Government Contracting Changes the Game
  • Why public projects are more predictable and stable than private jobs
  • How to leverage steady cash flow and reliable payments
  • Why “once you’re in, you’re in” with public agencies
  1. What Government Agencies Look For
  • Licensing, bonding, and financial documentation essentials
  • How to register as a vendor and build a reputation through smaller jobs
  1. How to Get Started – With Verified Portals

George shares verified links for bidding in San Francisco, Los Angeles, and Orange County, including official registration portals and pro tips for each region. See https://accountingsolutionsllp.com/procurement/

🔹 San Francisco Region

  • SF Department of Public Works – (see link above)
  • SFPUC – (see link above)
  • SF Office of Contract Administration – (see link above)

🔹 Los Angeles Region

  • RAMP (Regional Alliance Marketplace) – (see link above)
  • LA City Bureau of Engineering –  (see link above)
  • LA County Open Solicitations – (see link above)
  • BidExpress –  (see link above)

🔹 Orange County Region

  • Periscope S2G – (see link above)
  • OC Public Works –  (see link above)
  • City of Irvine – (see link above)
  • OCTA –  (see link above)
  • OC Sanitation District –  (see link above)

 

Pro Tips & Mistakes to Avoid

  • Start small — build credibility with smaller contracts first
  • Keep financials and compliance airtight
  • Attend procurement workshops to get on preferred vendor lists
  • Consistent bidders can grow from $1M → $10M+ in just a few years

 

Bonus Resource

See https://accountingsolutionsllp.com/procurement/

 

Related Topic: What to Look for in a CPA Firm for Construction Companies

If you’re serious about scaling through public work, make sure your CPA firm checks these boxes:

  • Construction-specific job costing & WIP reporting
  • Tax strategy under §460 and multi-entity optimization
  • Certified payroll & prevailing wage compliance
  • Bonding-ready financials
  • Proactive advisory and industry tech integration

 

 


Episode 16 - Top 10 Mistakes Contractors Make

Show Notes

Most construction firms overpay the IRS — not because of bad business, but because of poor tax strategy.
In this episode, we reveal 10 powerful ways to legally save $50,000 or more in taxes each year by optimizing deductions, improving reporting, and tightening financial systems.

From Section 179 write-offs to R&D tax credits and WIP reports, these tactics are proven and practical for contractors who want to build smarter — not just harder.

#1 – Leverage Section 179 Deductions

  • Write off heavy equipment and tools immediately
  • Turn big purchases into instant tax savings

#2 – Implement Job Costing Software

  • Track labor, materials, and fuel costs by project
  • Reveal hidden deductions and stop the guessing game

#3 – Utilize the R&D Tax Credit

  • Qualify for credits when testing materials or new methods
  • Turn innovation into real money back

#4 – Master the Percentage of Completion Method

  • Recognize income as work is completed
  • Smooth out tax payments and improve cash flow

#5 – Create a Tax Buffer Fund

  • Set aside 10% of revenue for tax surprises
  • Stay calm and prepared when April hits

#6 – Optimize Work-In-Progress Reporting (WIP)

  • Forecast revenue and detect overbillings early
  • Avoid year-end tax shocks with proactive reporting

#7 – Consult a Construction Tax Specialist

  • Why industry expertise matters
  • Get specialized insights that generic accountants miss

#8 – Separate Business and Personal Expenses

  • Protect deductions and avoid IRS red flags
  • Keep clean records with separate accounts and receipts

#9 – Conduct Mid-Year Tax Reviews

  • Check in twice a year to adjust strategies
  • Lock in savings before deadlines

#10 – Automate Payroll with Tax Compliance Software

  • Reduce errors and penalties
  • Save time while staying audit-proof

Closing & Call-to-Action

  • Summary: 10-step blueprint to save $50K+ annually
  • Call-to-action: Like, Subscribe, and Download our Free Construction Tax Checklist

Key Takeaways

  • Tax strategy = profit strategy
  • Smart accounting systems create cash flow
  • Don’t wait for year-end — plan mid-year
  • Hire pros who know construction

 

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 


Episode 15 - Should You Buy Your Truck Under Your Business or Personal

Show Notes

In this episode of Concrete #s, host George Ghazarian breaks down one of the most confusing tax questions contractors face —
“Should I buy my truck under my business or in my personal name?”

It’s a simple decision that can save (or cost) you tens of thousands in taxes.
George walks you through Section 179, Bonus Depreciation, IRS rules for business use, and the 50% and 80% thresholds that every contractor should know before signing those dealership papers.

Key Topics Covered

Part 1: Why This Decision Actually Matters

  • The IRS doesn’t care what’s on the title — only how you use the truck.
  • Your vehicle might be both a business tool and a personal ride.
  • Usage determines deductions, not ownership.

Part 2: Option 1 — Buying It Under the Business

Pros

  • Deduct loan payments, fuel, insurance, maintenance, and depreciation.
  • Eligible for Section 179 and Bonus Depreciation if used >50% for business.
  • Clean bookkeeping when everything runs through the business.

Cons

  • Personal use becomes a taxable fringe benefit.
  • Higher insurance and registration in some cases.
  • Drop below 50% business use → lose Section 179 eligibility and must recapture depreciation.

Part 3: Option 2 — Keeping It in Your Personal Name

Pros

  • Still deductible via mileage (70¢/mile 2025) or actual expense method.
  • Avoids fringe-benefit taxation.
  • Simpler personal use rules.

Cons

  • Must track business miles meticulously — no log, no deduction.
  • Less aggressive depreciation potential.

Part 4: The 80/20 Rule — The Decision Point

  • 80%+ business use → title it under the business (best for dedicated work trucks).
  • Mixed personal use → keep it personal, use mileage/actual expense method.
  • <50% business use → not eligible for Section 179 or Bonus Depreciation.

Part 5: Documentation — The Real Key

  • Keep receipts, insurance, maintenance records, and mileage logs.
  • If owned by the business, make payments from the business account only.
  • The IRS cares about records, not intentions.

Part 7: Closing

If it’s your jobsite workhorse, put it under the business.
If it’s your weekend hauler, keep it personal.

Remember:

  • 50% business use = Section 179 eligible.
  • < 50% = no deduction recapture risk.
  • 80% = slam dunk for full business ownership.

Keep your foundations solid, your records tight,
and your numbers — concrete.

Key Takeaways

-Section 179 & Bonus require > 50% business use.
-IRS mileage rate for 2025 = 70 ¢/mile.
-Documentation > deductions.
-Don’t chase write-offs at the expense of compliance.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 14 - Contractor or Employee

Show Notes

In this episode of Concrete #s, host George Ghazarian exposes one of the most costly mistakes contractors make — misclassifying workers as independent contractors instead of employees.


What starts as a shortcut to “keep things simple” can end in six-figure penalties from the IRS, EDD, and FTB. George breaks down how misclassification happens, how California’s ABC Test and the IRS’s Common Law Test work, and what you can do to protect your business from audits, penalties, and financial disaster.

Key Topics Covered

Part 1: The Reality — Misclassification Is an Audit Magnet

  • Why 1099 “shortcuts” backfire in construction.
  • Common triggers for EDD and IRS investigations.
  • How a small oversight can lead to $50K–$150K in back taxes and penalties.

Part 2: California’s ABC Test (AB5 & Dynamex)

  • The three-part rule:
    • A: Freedom from control.
    • B: Work outside your core business.
    • C: Independent trade or business.
  • What makes most field workers “employees,” not contractors.

Part 3: The IRS Common Law Test

  • The federal version of worker classification.
  • Three key factors: Behavioral control, Financial control, and Relationship type.
  • When “looks like an employee” = “is an employee.”

Part 4: The Fading Safe Harbor (Section 530)

  • The old “reasonable basis” rule — and why it’s no longer reliable.
  • How IRS enforcement is tightening on misclassification defenses.

Part 5: Protecting Your Business

Practical steps to reduce risk:

  • Use written subcontractor agreements.
  • Verify insurance and licenses.
  • Pay by project, not by the hour.
  • Ensure subs have multiple clients.
  • Keep documentation to prove independence.

Part 6: Real-World Examples

  • Jose: hourly concrete laborer using your tools — employee.
  • ABC Concrete Finishing: licensed sub with crew, insurance, and multiple clients — legitimate contractor.

Part 7: The Bottom Line

  • Misclassification is a shortcut straight off a cliff.
  • Once the audit starts, it’s no longer about saving taxes — it’s about survival.

Takeaways

Misclassification = one of the top audit triggers in construction.
California’s ABC Test is tough — fail any part, and it’s employment.
Documentation, contracts, and clear independence are your best defense.
Don’t wait for an audit to clean it up.

Listen Now

Protect your business, your people, and your bottom line — before a $100,000 mistake hits your mailbox.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 


Episode 13 - QSub 101: The Smartest Move You've Never Heard Of

Show Notes

In this episode of Concrete #s, George breaks down one of the most underused — yet incredibly powerful — strategies for growing construction companies: the Qualified Subchapter S Subsidiary, or QSub.

If you’re running your business as an S corporation and thinking about adding new divisions, rental operations, or development projects, this episode explains how QSubs can give you maximum liability protection without creating multiple tax returns or unnecessary complexity.

Key Segments

  1. The Problem — Growth Brings Risk

As your construction business expands, so does your exposure. Multiple job sites, divisions, and rental operations all carry unique risks. Setting up multiple LLCs or corporations can protect you — but it also creates administrative and tax headaches.
Enter the QSub: the balance between protection and simplicity.

  1. The Solution — What a QSub Actually Is

A QSub is a corporation owned 100% by your main S corporation.

  • Legally: It’s its own entity — can own property, hire employees, open accounts, and even get sued separately.
  • For taxes: The IRS treats it as part of the parent S corp.
    One S corp return. One K-1 per shareholder. No extra filings.
  1. The Benefits — Why Construction Owners Love It

Risk Protection Without Complexity

  • Separate liability between business lines or job sites.
  • One division’s lawsuit or loss doesn’t touch the others.

Simplicity at Tax Time

  • One Form 1120-S, one return.
  • No messy consolidations or double accounting.

Flexibility for Growth

  • Create QSubs for new job sites, equipment rentals, real estate projects, or different trades.
  • Move assets between your S corp and QSubs tax-free — because they’re one entity in the IRS’s eyes.
  1. The Process — How to Set One Up
  1. Your S corp owns 100% of another corporation.
  2. File Form 8869 with the IRS to elect QSub status.
  3. Once approved, that subsidiary is part of your parent company for taxes — but still its own legal entity for liability.
    Simple setup, big payoff.
  1. Real-World Example

Example: Concrete Kings S Corp creates Concrete Kings Development Inc. as a QSub.

  • The QSub manages land and development projects.
  • The parent company keeps doing construction work.
    If the development arm gets sued, the main business is protected — but everything still rolls into one tax return.
    Legal separation, tax unity.
  1. When a QSub Makes Sense

Perfect for construction owners who are:

  • Running multiple job sites or divisions.
  • Getting into real estate development or equipment rentals.
  • Holding assets (like trucks or heavy machinery) separately.
  • Expanding geographically but want centralized control and taxes.

If you’re scaling fast, it’s time to have the QSub talk with your CPA.

  1. TL;DR Recap
  • A QSub = 100%-owned subsidiary of an S corp.
  • Separate legal entity, unified for taxes.
  • One return, one K-1.
  • Transfer assets tax-free between entities.
  • Protect each division — without multiplying paperwork.

One parent. Many subs. One return. Maximum protection.

Takeaway

QSubs let construction owners grow smart — not messy.
They offer legal separation and protection across multiple business lines, without adding new tax filings or complexity.
It’s the most underrated structure in the S corp playbook.

 

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 12 - Start-Up Costs

Show Notes

In this episode of Concrete #s, George dives into a real U.S. Tax Court case — Kwaku Eason and Ashley L. Leisner v. Commissioner (Tax Court Summary Opinion 2024-17) — where two entrepreneurs lost $40,000 in deductions because the IRS ruled their business hadn’t officially begun.

George breaks down how to determine your true business start date, what the IRS looks for, and how to protect your deductions with the right documentation and planning.

Key Segments

  1. The Setup — $40,000 Gone Wrong

Two business owners invested heavily in education, training, and startup costs. They formed their LLC and deducted everything — only to have the IRS disallow every dollar, claiming the business hadn’t started operating yet.

  1. The Lesson — When Does a Business Actually Start?

Forming an entity doesn’t automatically mean your business has started.
According to the IRS, operations begin when you start actively doing business, not just preparing for it.

  • Pre-start activities: Training, setting up systems, forming the entity.
  • Operational activities: Marketing, bidding jobs, signing contracts, earning income.

Your deductions count once you cross that operational line.

  1. The Smart Move — Track Your Timeline

Keep detailed records of when you began operations:

  • First day you marketed or advertised
  • First bid or proposal submitted
  • First client signed
  • First payment received

This documentation can make or break your case if the IRS ever challenges your deductions.

  1. The Good News — Startup Expense Deductions

Even if your business hasn’t officially started, you don’t lose everything:

  • Deduct up to $5,000 of startup costs in the first year
  • Amortize (spread) the remaining amount over 15 years

Example: $40,000 in startup costs → $5,000 deducted now, about $2,300 per year over the next 15 years.

  1. Real-World Construction Example

If you’re a contractor launching a new division or side business — say, concrete restoration — your startup expenses (tools, insurance, training) count only after operations begin.
Once you start marketing or signing contracts, that’s your official start date.

  1. The Takeaway — Timing Is Everything

When your business starts isn’t just a date — it’s a tax event.
Plan it, document it, and talk to your CPA before spending big.
A quick conversation could save you tens of thousands in denied deductions.

 Episode Highlights

  • Your business “starts” when you begin operations, not when you file paperwork.
  • Track your timeline and keep proof of activity.
  • Startup costs can still be deducted — just differently.
  • One smart planning meeting with your CPA can prevent huge losses.

Case Reference

Kwaku Eason and Ashley L. Leisner v. Commissioner, Tax Court Summary Opinion 2024-17

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 11 - How to Sell Your Construction Business Tax-Free

Show Notes

If you own a construction company and plan to sell in the next 3–5 years, this episode could literally save you millions.

George breaks down what he calls “the mother of all tax strategies” — the Qualified Small Business Stock (QSBS) exclusion under Section 1202 of the Internal Revenue Code. This powerful (and often overlooked) tax rule lets you potentially sell your construction company completely tax-free — up to $15 million of gain.

In This Episode

You’ll learn:

  • 💡 What QSBS is — and how it allows qualified business owners to sell stock tax-free.
  • How the $15 million exclusion works and how to qualify under Section 1202.
  • Why most construction companies miss out by staying as S corps — and how to fix it.
  • The 3-, 4-, and 5-year rules for partial and full QSBS exclusions under the Opportunity to Build Back Better Act (OBBBA).
  • A real-world example: how converting from an S corp to a C corp in 2025 could save you millions when you sell in 2030.
  • Key requirements to qualify:
    1. Be a domestic C corporation
    2. Acquire stock through original issuance
    3. Pass the 80 percent active-business test
    4. Have less than $50 million in gross assets at issuance
  • The math: what your tax bill looks like with and without QSBS.
  • Strategic takeaways: why planning early and structuring properly matters if you’re targeting an exit.

 Key Takeaway

The Qualified Small Business Stock exclusion is the single most powerful exit-planning tool for construction business owners who want to keep their hard-earned gains.
Plan early, structure smart, and you could legally sell your business with little to no federal capital-gains tax.

Quick Disclaimer

QSBS rules are highly technical. Always consult your CPA or tax attorney before restructuring your entity or issuing new shares.
(Also note: California does not conform to the federal QSBS exclusion, so state taxes may still apply.)

Resources Mentioned

  • IRC Section 1202 – Qualified Small Business Stock (QSBS)
  • Opportunity to Build Back Better Act (OBBBA) – updates creating partial 3-/4-/5-year exclusions
  • IRS Publication 550 – Investment Income and Expenses (capital-gains reference)

For Construction Business Owners

Thinking about selling your company in the next few years? Start planning now.
A simple entity conversion and timing strategy could mean the difference between writing a seven-figure check to the IRS or keeping it in your pocket.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 


Episode 10 - Scale Your Construction Business (Part I)

Show Notes

In this episode of Concrete #s, host George Ghazarian, CPA for Contractors, dives into the difference between growing and scaling your construction business. Drawing from Dr. Benjamin Hardy’s book The Science of Scaling, George explains why so many contractors stall out with incremental growth — and how to break through using Hardy’s Frame, Floor, Focus framework.

  • Most contractors grow linearly — 10–15% per year — and eventually stall.
  • Linear growth = doing more of the same, not creating leverage.
  • To truly scale, you need systems that work without you on every jobsite.

Frame – Set “impossible” goals that force new thinking.

Example: “Double revenue in 18 months with no increase in hours worked.”

Floor – Raise your minimum standards.

Drop low-margin jobs, micromanaging clients, and inefficient work.

Focus – Concentrate only on what moves the needle.

Streamline services, systematize operations, and build repeatable job types.

Practical steps:

  • Frame your bold goal (e.g., $10M in 12 months with same management team).
  • Raise your floor by defining what you’ll stop doing.
  • Focus your business model on scalable systems and repeatable services.
  • Measure progress with metrics: revenue per crew, margin per job, management hours per project.

Common Pitfalls & How to Avoid Them

  • Growing volume without improving margins.
  • Keeping too many service lines (“complexity kills scale”).
  • Hiring hands, not aligned talent.
  • Setting long timelines that create no urgency.

Fix: Commit to impossible goals, simplify, and raise your floor now.

Scaling isn’t just about strategy — it’s about who you become.

“You don’t scale your business until you scale you.”

Shift your identity from builder to leader.
Your mindset and standards directly shape your numbers.

Key Takeaways

- Set a goal so big it forces transformation.
- Drop what doesn’t scale.
- Align your systems, team, and services with that vision.
- Measure results relentlessly.
- Evolve your identity — from on-site operator to business leader.

🔗 Connect with Me

🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/

 

 


Episode 9 - New IRS Penalty Abatement Rules

Show Notes

New IRS Penalty Abatement Rules Every Contractor Needs to Know

If you own a construction business and got hit with IRS penalties — don’t panic. The IRS does offer relief, but the rules on penalty abatements have recently changed.

In this video, I’ll walk you through:
1. What penalty abatement is (and when you can use it)
2. How the First-Time Abatement works for both business and individual filings
3. The new IRS criteria that decide whether your request is approved or denied
5. Common pitfalls that cause contractors to lose their abatement request
6. Step-by-step guidance on how to request penalty relief the right way

Key Things

  • You can usually qualify for one First-Time Abatement every 3 years for each entity (business + individual).
  • The IRS now rejects penalty relief requests based solely on CPA error or “I didn’t know” excuses.
  • Valid reasons include illness, disasters, missing records, or situations beyond your control.
  • Always make sure you’re current on filings and payments before requesting abatement.
  • The relief isn’t automatic — you must formally request it (often by phone or via Form 843).

⚒️ Resources Mentioned

🔗 Connect with Me

🌐 accountingsolutionsllp.com
📧 george@accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/

Book a Strategy Call: https://accountingsolutionsllp.com/appointment/


Episode 8 - Hire Your Kids

Show Notes

📘 How Hiring Your Kids Can Save You BIG on Taxes 👨‍👩‍👧‍👦💸

If you’re a construction business owner or self-employed, you could be missing out on one of the most powerful, legal tax-saving strategies available — hiring your kids!

In this episode, CPA George Ghazarian breaks down exactly how to hire your children the right way to keep more money in your family and less in Uncle Sam’s pocket.

💡 What You’ll Learn

✅ How to legally hire your kids under 18 — and pay no FICA or unemployment taxes
✅ Why your kids pay zero federal income tax on reasonable wages
✅ How to deduct their wages on your Schedule C to reduce your business income and self-employment tax
✅ Real-world example: Hire 3 kids, save over $18,000 in taxes
✅ The right way to document, pay, and report wages to stay IRS-compliant
✅ Common mistakes to avoid so you don’t get flagged for audit

🧮 Example in Action

Hire 3 kids at $15,750 each = $47,250 total deduction
At a 38% combined tax rate → Over $18,000 in tax savings!
Your kids pay $0 in federal income tax.
💰 You save thousands, they learn financial responsibility — and the family keeps the wealth in-house.

⚠️ IRS Compliance Tips

✔️ Your kids must perform real, age-appropriate work
✔️ Keep time sheets, job descriptions, and pay records
✔️ Pay reasonable wages and issue W-2s
✔️ Works best for sole proprietorships or husband-wife partnerships

(S Corps and C Corps can still do this — but FICA applies!)

🏗️ Why Construction Business Owners Love This Strategy

Construction businesses often have plenty of legitimate jobs for kids — cleaning the shop, helping with marketing, managing social media, organizing tools, or assisting with bookkeeping.
This is hands-on financial education that pays dividends for generations.

👨‍👩‍👧‍👦 Smart Ways for Your Kids to Use Their Earnings

💵 Save for college or a car
💵 Contribute to a Roth IRA (tax-free growth for life!)
💵 Cover personal expenses you’d normally pay for anyway

📞 Need Help Setting This Up?

If you want to make sure this is done right — from payroll to documentation to tax filings — book a consultation with George: https://accountingsolutionsllp.com/appointment/

🔗 Connect with George

🌐 Website: https://accountingsolutionsllp.com/
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
🎥 YouTube: https://www.youtube.com/@concretenumbers


Episode 7 - Tax-Free Medical Expenses

Show Notes

If you own a construction business, there’s a legal way to pay for your family’s healthcare costs with tax-free dollars — and your business gets the deduction. In this episode, CPA George Ghazarian explains how to use a Health Reimbursement Arrangement (HRA) to turn medical expenses into smart business deductions while saving thousands on taxes.

We’ll break down exactly how this strategy works, what the IRS allows, and how to set it up correctly — so you can keep more of what you earn.

Learn how Health Reimbursement Arrangements let your company reimburse medical costs tax-free — and deduct those same costs as a business expense.

What Expenses Qualify
From prescriptions to braces to insurance premiums — discover the full list of deductible medical expenses you can legally run through your business.

How Construction Business Owners Can Use It
Real-world examples showing how S-corps, LLCs, and even sole proprietors can structure HRAs — including spousal employee setups that work for small contractors.

How to Set It Up (Step-by-Step)
Exactly what you need to do:

  1. Write a compliant plan document
  2. Substantiate every expense with proof
  3. Reimburse through payroll or business check
  4. Keep detailed records
    Get it right, and your HRA becomes an IRS-proof tax-saving machine.

Stop leaving money on the table — contact George Ghazarian, CPA, to set up your own compliant HRA and see how much you could save.

Bonus Resource

https://accountingsolutionsllp.com/hra_template/

Book a Free Strategy Call

https://accountingsolutionsllp.com/appointment/

 


Episode 6 - Buy or Lease

Show Notes
  1. Pros of Buying
  • You own the equipment and build long-term equity.
  • Eligible for major tax deductions via Section 179 and Bonus Depreciation, often allowing a full write-off in year one.
  • Typically lower total cost over the long run if you keep the equipment.
  • Full control over use, maintenance, and resale — no mileage or hour limits.
  1. Cons of Buying
  • High upfront cost or large down payment impacts cash flow.
  • You’re responsible for repairs, maintenance, and downtime.
  • Depreciation risk — the asset loses value over time.
  • Can strain working capital if your business is growing fast.
  1. Pros of Leasing
  • Low upfront cost — often just first month’s payment and small deposit.
  • Predictable monthly expenses make budgeting easier.
  • Fully deductible lease payments — simple tax reporting, no depreciation schedules.
  • Flexibility to upgrade or return equipment as your business needs change.
  1. Cons of Leasing
  • You don’t build equity — no ownership at the end unless you buy it out.
  • Higher total cost over time compared to buying outright.
  • Possible buyout fees or limits on usage, wear, and customization.
  • You may end up paying for an asset you never truly own.
  1. Tax Comparison: Buying vs. Leasing

Factor

Buying

Leasing

Deduction Type

Section 179 & Bonus Depreciation

Full lease payments as expenses

Timing of Tax Benefit

Large upfront deduction (year of purchase)

Smaller, steady deductions over time

Cash Flow Impact

Heavy early outlay

Smooth and predictable monthly costs

Asset on Books

Yes (capital asset)

No (off-balance-sheet expense)

Ideal When...

You’re profitable and want big write-offs

You need to preserve cash or stay flexible

 

  1. Bonus: https://accountingsolutionsllp.com/buy-vs-lease/
  2. Book a time: https://accountingsolutionsllp.com/appointment/


Episode 5 - Freelance Worker Protection Act

Show Notes

FWPA Quick Facts

  • Effective Date: January 1, 2025
  • Applies to: Professional freelancers (bookkeepers, designers, consultants, marketers, etc.)
  • Does NOT apply to: Licensed trades or construction subcontractors
  • Written Contract Required: When total payment is $250 or more within 120 days
  • Required Contract Details:
    1. Names and addresses of both parties
    2. Itemized list of services, rate, and payment calculation
    3. Payment due date or method for determining it
    4. Freelancer’s invoice submission deadline
  • Recordkeeping: Must retain contracts for 4 years
  • Payment Deadline: By due date or within 30 days of completion if none is stated

 

Penalties for Non-Compliance

Violation

Possible Penalty / Remedy

No written contract

Unpaid amount + $1,000 penalty

Late payment

2× the amount owed

Other FWPA violations

Damages equal to contract value or work performed

Retaliation

Prohibited; exposes liability

Legal claims

Hiring party may owe freelancer’s attorney fees + court costs

 

 How Contractors Can Stay Compliant

  1. Identify freelancers providing professional services (not trades).
  2. Create a standard FWPA contract template with all required details.
  3. Keep copies for 4 years.
  4. Review payment processes — ensure timely payment.
  5. Integrate these steps into your freelancer onboarding process.

Subcontractors are exempt. Continue using your normal construction agreements.

 

Key Takeaways

  • Applies to freelancers, not construction subs
  • Written contracts required for jobs over $250
  • Must pay on time — no handshake deals
  • No change to AB 5 employee classification rules

 


Episode 4 - New Depreciation Rules

Show Notes
  • 100% Bonus Depreciation is permanent for qualifying property placed in service after Jan 19, 2025
  • New QPP category allows immediate write-offs for production-based real property (like fabrication shops or asphalt plants)
  • Key Deadlines:
    • General assets → In service by Jan 1, 2030
    • Long-production assets → Jan 1, 2031
    • Agricultural → Plants/trees by Jan 1, 2030
  • Cost Segregation = Faster deductions + Bigger tax savings
  • Strategic Planning Tip: Buy or build after 1/19/25 for full expensing benefits

Examples

  • Buy a $400,000 excavator → Immediate $400K deduction (2026 example)
  • Build a $2M fabrication facility → 100% first-year write-off under QPP rules

 


Episode 3 - Converting Personal Vehicle to Business Use

Show Notes

-Does not require new capital outlay

-Example: John bought a car for $80k in 2022, in 2025 his car is worth $40k and he uses it 70% for business use. Therefore, he can use $28k as his basis to depreciate in the business (tax advantage amount)

-Documentation is key: milage logs!

-2 Types of Depcreciation to accelerate: 1) Sec 179 and 2) Bonus

-Only bonus is available for used vehicles

-If >6k lb vehicle then can take 100% bonus

-If <6k lb, subject to limits:  $20.k first year, $19,6k 2nd year, $11.8k 3rd year and $7,060 every year thereafter until fully depreciated

-Vehicle must be financed or paid in cash to depreciate

-If leased it you can only take as an expense the amount of lease payment you make monthly

Upon sale:

-Loss = Sals Proceeds – Adj Bsis (i.. FV at conversion – Depreciation)

-Gain = Sales Proeceeds – Original cost less post-conversion depreciation

-Not necessarily required to transfer title and insurance, but need to have your business use documentation straight

If you have any questions, please feel free to book a time: https://accountingsolutionsllp.com/appointment/

 


Episode 2 - Digitizing Tax Receipts

Show Notes

-Retaining support makes all the difference

-Under $75 is below IRS de minimis

-Each receipt should contain

  1. Date
  2. Amount
  3. Place
  4. Business purpose
  5. Business relationship

-Best Practice: Picture the Receipt!  Forget all the apps.

-If you can’t prove it, you lose it

-Cohan rule, IRS may allow if:

  1. Expense is legitimate
  2. There is a reasonable basis to the estimate
  3. Made a good-faith effort to substantiate

-Cohan rule does not apply to travel, meals, entertainment and gifts. Those require logs

-Also at that point you face significant reversals

Can do:

  1. Gather supporting evidence to extent you are able
  2. Write contemporaneous log
  3. Ask vendors for receipts, if they are able/willing to provide
  4. Show consistency

Can’t do:

  1. Make up receipts, that would be tax fraud.

https://accountingsolutionsllp.com/appointment/


Episode 1 - New 1099-NEC Rules

Show Notes

-Effective 1/1/2026, the new threshold for 1099-NEC issuance is $2k (threshold increased from $600)

-Gather W9 –

  1. if they are an S-Corp or C-Corp, no need to issue 1099-NEC.
  2. If they are a sole proprietor, single-member LLC, multi-member LLC or partnership, you would potentially issue them a 1099-NEC.

-If you pay vendor/sub through a payment processor, you do not issue a 1099, as the payment processor (like Stripe, Square, Paypal) will issue them a 1099-K

-If you paid by cash, zelle, ACH, check, Venmo, you will need to issue 1099-NEC for those amounts potentially

-Penalties for failure to file can be as high as $660/1099-NEC for 2025