Uncategorized Archives

12 Apr

Some last minute tax deductions for contractors before the year ends:

Posted by

Janet Mercer

April 12, 2026

1️⃣ Maximize Home Office Deductions → Calculate square footage of your workspace. Multiply by $5 for a simplified deduction up to $1,500. Optimize by re-evaluating space usage. A c

If you run an S-Corp and pay yourself a salary + distributions, December 26 is not too late to fix one of the most audited issues contractors face: reasonable compensation.

12 Apr

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If you run an S-Corp and pay yourself a salary + distributions, December 26 is not too late to fix one of the most audited issues contractors face: reasonable compensation.

Posted by

Janet Mercer

April 12, 2026

Underpaying yourself is the #1 reason S-Corps get audited—and it’s how contractors end up owing back payroll taxes, penalties, and interest years later. A few reminders before year

12 Apr

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🎄 My Christmas Gift to Contractors

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Janet Mercer

April 12, 2026

On Christmas Day, I wanted to do something simple and meaningful for contractors who are planning ahead for the new year. Now through December 31:If you sign up for 12 months of bo

Merry Christmas & Happy Holidays to Our Contractor Clients and Partners 🎄

12 Apr

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Merry Christmas & Happy Holidays to Our Contractor Clients and Partners 🎄

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Janet Mercer

April 12, 2026

As the year wraps up, I just want to say thank you to the contractors we work with every day. You build, fix, manage, and keep things moving—often while juggling long hours, crews,

Income splitting gets hyped online as “easy tax savings.” In reality, it’s one of the fastest ways contractors end up audited if done wrong.

12 Apr

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Income splitting gets hyped online as “easy tax savings.” In reality, it’s one of the fastest ways contractors end up audited if done wrong.

Posted by

Janet Mercer

April 12, 2026

Yes—income splitting can be legitimate. But only when it’s real, documented, and defensible. What income splitting is not:• Hiding income• Paying family members who don’t actually

If you’re just thinking about tax planning in December, you’re already behind.

12 Apr

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If you’re just thinking about tax planning in December, you’re already behind.

Posted by

Janet Mercer

April 12, 2026

We recently worked with a high-income contractor who had a strong year and came in late Q4 looking to reduce taxes. Some strategies still worked. Most didn’t. What can still work l

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The construction tax planning strategies that separate $100K from $1M businesses:

Posted by

Janet Mercer

April 12, 2026

1. Leverage Cost Segregation Studies → Accelerate depreciation on building components. Boosts cash flow by 20% in year one. 2. Implement a Tax-Efficient Entity Structure → Use LLCs

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“We set up a 529 for our kid, but now they’re not going to college. Are we stuck paying taxes if we take the money out?”

Posted by

Janet Mercer

April 12, 2026

I get this question every now and then. Short answer: not necessarily. Yes — if you cash it out for non-qualified expenses, the earnings portion is taxable.But there are several sm

🚧 Contractors expecting a tax refund in 2025 — read this.

12 Apr

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🚧 Contractors expecting a tax refund in 2025 — read this.

Posted by

Janet Mercer

April 12, 2026

The IRS is moving away from paper refund checks starting with 2025 tax returns. If you don’t include direct deposit information on your return, here’s what happens 👇• Your refund d

If you own an S-Corp and work in the business, the IRS expects you to pay yourself a reasonable salary.

12 Apr

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If you own an S-Corp and work in the business, the IRS expects you to pay yourself a reasonable salary.

Posted by

Janet Mercer

April 12, 2026

Not sometimes.Not “when cash flow improves.”Always. Here’s why this matters in construction 👇Many contractors take little (or no) payroll and pull everything out as distributions t

I get this question all the time:“Is it okay if I move money from my business to my personal account?And what if I need to put it back later?”

12 Apr

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I get this question all the time:“Is it okay if I move money from my business to my personal account?And what if I need to put it back later?”

Posted by

Janet Mercer

April 12, 2026

Short answer: Yes — but only if it’s done correctly.And the rules depend heavily on your business structure. If you’re a sole prop or single-member LLC, pulling money out is usuall

🚧 Contractors with multiple companies — this is a common tax trap.

12 Apr

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🚧 Contractors with multiple companies — this is a common tax trap.

Posted by

Janet Mercer

April 12, 2026

A lot of contractors set up separate corporations thinking:• one for operations• one for equipment• one for real estate= more write-offs and flexibility Here’s the problem 👇If the

🚧 Contractors taking crypto? The IRS is about to see it.

12 Apr

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🚧 Contractors taking crypto? The IRS is about to see it.

Posted by

Janet Mercer

April 12, 2026

Starting in 2025, crypto platforms like Coinbase, BitPay, and custodial wallets must report transactions to the IRS on a new form (1099-DA). Important part most people miss 👇• The

If you’ve ever thought about installing EV chargers at your shop, yard, or office, the clock is officially ticking.

12 Apr

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If you’ve ever thought about installing EV chargers at your shop, yard, or office, the clock is officially ticking.

Posted by

Janet Mercer

April 12, 2026

The Alternative Fuel Vehicle Refueling Property (AFVRP) Credit is set to expire for equipment placed in service after June 30, 2026. That gives you seven months to act. Here’s what

Master Tax Moves Contractors Should Make Before Year-End in 30 days with this bulletproof roadmap:

12 Apr

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Master Tax Moves Contractors Should Make Before Year-End in 30 days with this bulletproof roadmap:

Posted by

Janet Mercer

April 12, 2026

Step 1: Audit your expenses → Identify deductible expenses. This reduces taxable income and increases savings. Step 2: Maximize retirement contributions → Contribute to SEP IRA or

Employee benefits are getting pricey—especially for contractors running tight margins. A simple fix that helps both you and your crew?

12 Apr

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Employee benefits are getting pricey—especially for contractors running tight margins. A simple fix that helps both you and your crew?

Posted by

Janet Mercer

April 12, 2026

Use a Section 125 Cafeteria Plan. Employees choose the benefits they want, and pay for them with pre-tax dollars.You save on payroll taxes, and they get more out of their paycheck.

Here’s a tax move most people in the trades are not using — and it can build serious wealth for your kids tax-free.

12 Apr

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Here’s a tax move most people in the trades are not using — and it can build serious wealth for your kids tax-free.

Posted by

Janet Mercer

April 12, 2026

Thanks to the new tax law, 529 plans now cover way more than college, including: ✔️ Trade schools✔️ Apprenticeships✔️ Licenses & certifications✔️ Tools required for training✔️ Priv

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If you’re planning to bring on additional workers in 2025 — especially with busy seasons ahead — don’t sleep on the Work Opportunity Tax Credit (WOTC). This credit rewards employers for hiring from certain “target groups,” and for the construction industry (where labor shortages are real), it can be a big win.

Posted by

Janet Mercer

April 12, 2026

Here’s the quick rundown: 🔹 Up to $2,400 per qualifying new hire.The basic WOTC gives you 40% of the first $6,000 in wages paid — that’s a $2,400 credit per employee. 🔹 Even higher

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Beginning with the 𝟮𝟬𝟮𝟱 𝘁𝗮𝘅 𝘆𝗲𝗮𝗿, custodial crypto platforms are required to report digital asset transactions on the brand-new 𝗙𝗼𝗿𝗺 𝟭𝟬𝟵𝟵-𝗗𝗔. That means if your business buys, sells, or accepts crypto through major custodial platforms (e.g. Coinbase, BitPay, or hosted wallets), those transactions will now be sent directly to the IRS—similar to how stock sales are reported on a 1099-B.

Posted by

Janet Mercer

April 12, 2026

Here’s why this matters for construction companies: 🔹 𝗖𝗿𝘆𝗽𝘁𝗼 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝗷𝗼𝗯𝘀 𝗰𝗼𝘂𝗻𝘁 𝗮𝘀 𝘁𝗮𝘅𝗮𝗯𝗹𝗲 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀. If you’re accepting crypto for services or materials, custodial broker

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For contractors are thinking of spinning off new divisions or creating subsidiaries: If you now own 2+ entities and some employees work for both, you may be paying too much in payroll taxes without realizing it.

Posted by

Janet Mercer

April 12, 2026

The Fix: Use a Common Paymaster Run payroll for shared employees through one entity. This prevents both companies from paying FICA on the same employee once their combined wages ex

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The truth about best ai construction software that industry insiders won’t tell you:

Posted by

Janet Mercer

April 12, 2026

1. Stop wasting time on outdated methods. These AI tools cut project delays by 30%. ✓ Automate Scheduling AI-driven software like ALICE Technologies predicts project timelines. → I

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Here are the 5 must-have softwares every construction business should be using:

Posted by

Janet Mercer

April 12, 2026

1️⃣ Project Management & Scheduling Procore or BuildertrendKeeps your jobs organized from bids to close-out. No more missing RFIs, change orders, or schedule updates. 2️⃣ Job Costi

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If you invest in Qualified Opportunity Funds (QOFs) — or plan to — the rules are about to get a lot tighter.

Posted by

Janet Mercer

April 12, 2026

Starting in 2027, QOFs will face significant new IRS reporting requirements. These changes are meant to add transparency, but they also increase the compliance burden for investors

One of the fastest ways business owners lose deductions in an IRS audit is simple: missing or unreadable receipts.

12 Apr

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One of the fastest ways business owners lose deductions in an IRS audit is simple: missing or unreadable receipts.

Posted by

Janet Mercer

April 12, 2026

Your bank or credit card statements only show that you spent money… not what you bought.Without receipts, those transactions become “naked expenses” — and the IRS loves to throw th

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If your business driving has dropped this year, it might be time to rethink how you deduct your vehicle expenses.

Posted by

Janet Mercer

April 12, 2026

For 2025, the actual expense method (fuel, repairs, insurance, plus depreciation) can often beat the standard mileage rate of 70¢ per business mile, especially if your mileage is l