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deductions, and these deductions often add significantly to the current tax flow. For contractors who have under-reported prior depreciation, recent IRS guidance allows “catch-up” deductions with an automatic change in accounting method.
Consider establishing a separate entity to own and lease fixed assets used in the business. Often referred to as leasing or procurement companies, these entities help manage assets and may significantly reduce sales and use tax, which is collected and remitted regardless of whether a company is profitable.
7.
domestic production activities deduction is a unique tax incentive available to most contractors. This incentive allows taxpayers to deduct 9% of qualifying production activities, which includes the construction or substantial renovation of domestic real property. A full 9%
8.
Maximize Section 199 deductions. The Section 199
deduction can reduce your effective federal tax rate by about three points, from a maximum of 35% to 32%. However, it is a complex area of tax law and the IRS has elevated the issue to its highest level of scrutiny. Check with a trusted tax advisor to make sure that you are taking full advantage of this deduction within the allowable guidelines.
Article by Grant Thornton LLP. It is not written tax advice directed at the particular facts and circumstances of any person. Persons interested in the subject of this document should contact their tax advisor to discuss the potential application of this subject matter to their particular facts and circumstances. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed. To the extent this document may be considered written tax advice, in accordance with applicable professional regulations, unless expressly stated otherwise, any written advice contained in, forwarded with, or attached to this document is not intended or written by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code.
In Memoriam
GHBA sends its sincerest condolences to the family and friends of two departed association members, David McCallum and Charles Richard Bergstrom III.
DAVID MCCALLUM, was born December 14, 1960 in Windsor, Ontario and died January 25, 2011, in Houston, Texas, surrounded by his immediate family and close friends.
David is survived by his wife Donna (nee Drouillard), the love of his life. Loving father to Robert and Marcy McCallum, Nelson and Tara Sarty and doting grandfather of Dakotah, Sierra and Chase Sarty. Cherished son of Mary O'Reilly and Norman and Judi McCallum and brother of Chris and Myrna McCallum, Kelly and Jay Tessier, Mary Beth and Brad Godin, Kim and Brent Call, Shawn and Angela McCallum. Predeceased by his brother, Mark James, 1965.
David was a generous, fun-loving, loyal friend who touched many lives. He will be dearly missed.
CHARLES RICHARD BERGSTROM III died at home on February 7, 2011. He was born in Abilene, Texas, on September 21, 1935. An amazing and gifted athlete, Dick helped lead Lamar High School to the
1953 State Championship. He was awarded numerous football scholarships and chose Rice University for its engineering school. He graduated from Southern Methodist University and married Janet Rendleman in 1958. Dick was a captain in the Air Force where he flew F102 fighter jets in the 497th Fighter Interceptor Squadron at the Moore Air Base in Madrid, Spain. Upon returning to the U.S., Dick accepted the position of president of M.L. Rendleman Co. and Fiberglass Insulators. Janet and Dick are active members of St. Luke's United Methodist Church where they teach Sunday school and are Youth ministry advisors.
Preceded in death by his parents and sister Barbara Lumsden. Dick is survived by his loving wife, and three children, Charles R. Bergstrom IV, Larry Bergstrom and wife Dicey, and Beth Ann McCartney and her children Merrimon, Regan and Rendleman, who were his pride and joy.
26 MARCH 2011 | HOUSTON BUILDER | GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE
Know who you’re doing business with?
When you do business with a fellow association member, you know who you are dealing with.
Your mutual success is
important to the viability of your industry and of your association.
Do business with members!
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