Uncategorized Archives

If you’re running a construction business, don’t leave money on the table. These last-minute quick strategies can help you save thousands before December 31:

Posted by

Janet Mercer

April 12, 2026

Prepay 2026 expenses now. Rent, insurance, or equipment leases, prepay up to 12 months and deduct it this year. Pause billing clients. Wait until January to invoice, push income in

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The R&D tax credits for construction advice everyone follows is completely backwards. Most are missing out on major savings because of bad information.

Posted by

Janet Mercer

April 12, 2026

Myth 1: "R&D credits only apply to engineering firms." → Reality: Any construction business that innovates processes or products can claim. Think design, materials, or techniques.

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After years of supply chain shocks and labor shortages, contractors are coming out of the storm scarred but smarter.

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Janet Mercer

April 12, 2026

The ENR West 2025 report highlights how larger firms are embracing tech and diversification — AI-assisted scheduling, robotics, sustainability initiatives. For smaller residential

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How one of my clients scaled from $3mm to $15mm in just 3 years:

Posted by

Janet Mercer

April 12, 2026

1. Most construction businesses lack a clear vision. → Clarity is king. Define where you want to be in 3 years. Harvard study: clear goals increase success by 300%. Paint a vivid p

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If you operate your construction business as an S corporation, you probably know it’s tax efficient for self-employment taxes. However, here’s a strategy you probably didn’t know about: 👇

Posted by

Janet Mercer

April 12, 2026

You can create an S corporation subsidiary, called a QSub — and it can give you extra legal protection without adding tax headaches. Here’s how it works: - A QSub is a separate leg

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Since it’s 🎃Halloween🎃, I thought I’d post something scary today👻:

Posted by

Janet Mercer

April 12, 2026

𝗧𝗿𝘂𝗲 𝘀𝘁𝗼𝗿𝘆: Two business owners jumped into a new venture, spent over $𝟰𝟬,𝟬𝟬𝟬 on education and setup costs, and tried to deduct it all in their first year. The IRS disallowed every

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The mother of all tax strategies that every construction business owner should know about: the Qualified Small Business Stock (QSBS) exclusion.

Posted by

Janet Mercer

April 12, 2026

The rule: If you structure your business as a C corporation and meet the QSBS rules, you can sell up to $15 million of stock — completely tax-free. This is perfect for construction

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If any part of your building or property has a useful life of 20 years or less (e.g. parking lots, lighting, HVAC, interior finishes, or site work) you can expense it all in year one instead of depreciating it over decades.

Posted by

Janet Mercer

April 12, 2026

That’s a huge cash-flow boost. 💰 But here’s the deal — you can’t just guess what qualifies.You need a cost segregation study to break your property into its parts and identify what

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Most construction firms bleed cash due to tax inefficiencies. Here’s how to plug those leaks and save $50K+ annually:

Posted by

Janet Mercer

April 12, 2026

1. Leverage Section 179 Deductions → Accelerate equipment depreciation to reduce taxable income immediately. 2. Implement Job Costing Software → Tracks expenses per project, reveal

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If you’ve ever had a job site hit by a flood, wildfire, or storm — you know the physical damage can be devastating. But here’s something most contractors don’t know: the IRS makes it tough to get a tax break for personal casualty or theft losses… and the OBBBA didn’t change that much.

Posted by

Janet Mercer

April 12, 2026

Here’s the breakdown 👇 🔸 Bad news first:Until 2026, you can only deduct a personal casualty loss (like a fire or theft) if it’s part of a federally declared disaster.Even then, you

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It’s one of the most common questions I get from contractors —“George, should I buy my truck under my business or just keep it in my personal name?”

Posted by

Janet Mercer

April 12, 2026

Here’s the short answer 👇 Putting it under the business:➕ You can deduct everything — payments, fuel, insurance, repairs, and depreciation.➕ Easier recordkeeping (all business).🚫 T

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The underground OBBBA Qualified Opportunity Zones tactics that 99% will never discover:

Posted by

Janet Mercer

April 12, 2026

1. Not just for the wealthy. → Even small investors can capitalize on tax incentives. A client invested $20K and saved $5K on taxes. Start small, think big. 2. Strategic location b

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Not every write-off means cutting a check.Some of the best tax deductions for contractors are non-cash outlays — paper deductions that lower your taxable income without hurting your bank balance.

Posted by

Janet Mercer

April 12, 2026

Here are a few worth knowing: 🏗️ Depreciation & Bonus Depreciation – Write off equipment, trucks, or tools (even if you financed them).🏠 Cost Segregation Study – If you own your sh

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Every contractor hits this crossroad at some point:👉 Do I lease that new skid steer, dump truck, or excavator… or just buy it outright?

Posted by

Janet Mercer

April 12, 2026

Here’s the short version 👇 Buying:🔨 Big upfront deduction with Section 179 or bonus depreciation (you can often write off the full cost right away).💵 You own the asset and build eq

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A lot of business owners — especially in construction — take out life insurance to protect their family or cover their company if something happens to them.

Posted by

Janet Mercer

April 12, 2026

But here’s something most people don’t know 👇If you ever sell your term life insurance policy (even to a family member), the IRS can treat that as taxable income.And when that pers

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If you’re a contractor in California, and you hire independent pros to help your construction business (e.g. estimator, bookkeeper, marketing consultant, or designer — not your field crew), note that starting January 1, 2025, the Freelance Worker Protection Act (FWPA / SB 988) requires written contracts for freelance jobs worth $250+ (or ongoing work over 120 days).

Posted by

Janet Mercer

April 12, 2026

That contract must include:- Both parties’ names & addresses- Scope of work, rate, and payment terms- Payment due date (or how it’s determined)- When the freelancer must submit inv

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Beginning in 2026, the OBBBA opens the door for itemized federal tax deductions on personal casualty losses from state-declared disasters — not just federally declared ones.

Posted by

Janet Mercer

April 12, 2026

That means if a governor declares a natural disaster in your state, the financial impact could now qualify for a federal tax deduction. For those in the construction and restoratio

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The new One Big Beautiful Bill Act (OBBBA) made significant tax relief for contractors, developers, and property owners.

Posted by

Janet Mercer

April 12, 2026

🏗️ 100% Bonus Depreciation — Permanent.Write off equipment, heavy vehicles, and land improvements in the year you buy them — no more waiting years to depreciate. 🧱 Section 179 Limi

If you’re running a construction business, whether you’re flipping houses, or taking on projects part-time, make sure you’re on the right side of the “business vs. hobby” line.

12 Apr

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If you’re running a construction business, whether you’re flipping houses, or taking on projects part-time, make sure you’re on the right side of the “business vs. hobby” line.

Posted by

Janet Mercer

April 12, 2026

The IRS is cracking down harder than ever on side gigs and small operations that look like hobbies on paper. Here’s 5 ways to do this: Operate like a business. Keep detailed record

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The new One Big Beautiful Bill (OBBBA) made the Qualified Opportunity Zone (QOZ) program permanent, which is big news for the construction industry.

Posted by

Janet Mercer

April 12, 2026

As many might know, “QOZ 1.0” allows deferral of capital gains for capital invested in designated areas until 2026. Starting in 2027, “QOZ 2.0” will roll out and continue to offer

12 Apr

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It happens all the time in industry.

Posted by

Janet Mercer

April 12, 2026

Someone brings on a crew member and files a 1099 instead of a W-2 “to keep things simple.” Here’s the deal:That “simple” move can become a six-figure mistake when the IRS or state

Many contractors running S-corps think, “I’ll just pay myself a big bonus at year-end, withhold taxes, and call it good.”Sounds smart, right? Not so fast.

12 Apr

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Many contractors running S-corps think, “I’ll just pay myself a big bonus at year-end, withhold taxes, and call it good.”Sounds smart, right? Not so fast.

Posted by

Janet Mercer

April 12, 2026

Here’s why this strategy can backfire: 1) Payroll taxes sting: A $100,000 W-2 bonus can cost you and your company over $15,000 in extra Medicare and Social Security taxes — far mor

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🚧 1099-NEC Threshold Increases to $2,000 🚧

Posted by

Janet Mercer

April 12, 2026

For decades, contractors and small business owners have been stuck with a $600 threshold for issuing 1099-NEC forms, a number that hasn’t budged since 1954. That’s finally changing

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If you perform construction work in California, remember that materials you furnish and install may be subject to sales and use tax — and local rates are changing effective October 1, 2025.

Posted by

Janet Mercer

April 12, 2026

Review your project locations, update your systems, and make sure your billing reflects the new CDTFA rates. Attach CDTFA Rates.

12 Apr

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Raw Version

Posted by

Janet Mercer

April 12, 2026

Amended Tax Return IRS Audit Statute of Limitations Normally, the IRS has 3 years from the date you file your return (or the due date, whichever is later) to audit it. This is call