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 same small group of owners (often family) owns most of each company, the IRS may treat them as one taxpayer under IRC §1563.

That means:• One Section 179 limit, not one per company• Shared limits on credits and retirement plans• Extra compliance most owners don’t know they’re missing

This is especially common with husband/wife ownership, kids involved, or “we split it 60/40” structures. Family attribution rules apply whether you intended them to or not.

TLDR: separate entities don’t automatically mean separate tax benefits. Ownership — not operations — is what the IRS looks at.

If you’ve got multiple companies in your construction group, this is something you want reviewed before the IRS does it for you. Book a time: accountingsolutionsllp.com/appointment

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.