Tax Senior Manager, Darden Bell, shared a think piece featured in the July/August 2017 issue of Construction Accounting & Taxation providing insights on what the recent tax reform may have in store for the construction industry and how to plan for these changes as they have reached the finalization stage.
How will these changes impact the construction industry?
Of the areas currently known to be under consideration, those that would have a significant impact on the construction industry include:
- Potential reduction in tax rates;
- Elimination of special interest items like the Section 199 deduction;
- Immediate expensing of capital assets rather than depreciating them (House blueprint);
- Limitations on deducting interest expense (House blueprint);
- Changes to how NOLs are utilized (House blueprint); and
- One-time deemed repatriation of earnings accumulated overseas under the old system.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.