Tax Savings for Construction, Architecture and Engineering Firms Part 2… (Small Business Webcast)

BulldozerAnother excellent tax tip which is applicable to construction, architecture, and engineering firms is the Domestic Production Activities Deduction. This deduction is set to expire at the end of 2010, but if you did not claim it in prior years you’re still able to go back and amend returns for past years. The DPAD allows architects, engineers, and contractors who participate in production of buildings or other items inside the US to take a deduction of three, six, or nine percent (depending on the year) for their participation in domestic production. The amount of the deduction allowed is limited to 50% of W-2 wages paid by the taxpayer and wages paid to owners are included within the calculation. This may be a massive deduction for firms whose services qualify as domestic production. In the event you do not have any employees, perhaps you need to turn yourself into an employee of your business so you’ll be able to take this deduction.

When you have a small company it’s often a great idea to consult with a tax adviser to make certain you are making the most out of all of the deductions possible for your business. There are more tax tips discussed in my webcast called “Tax Savings for Construction, Architecture, and Engineering Firms” and it is possible to register at to watch future webcasts on similar topics such as “Tax Savings for Engineering Firms” on August 4th which will rehash and update many of the issues covered in the first webcast.