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