Newsletter: The Contractor’s Edge, Spring 2021
Don Hoffman, Managing Partner, was published in the Baltimore Business Journal: How to maximize your chances of PPP loan forgiveness
Newsletter: Fall 2020 Manufacturer
Press Release: Kyung Ha Lee, CPA, Joins The Hoffman Group
Press Release: Denise L.P. Fritsche, CPA, Joins The Hoffman Group
Newsletter: Summer 2020 Construction Industry Advisor
Press Release: Jake Debus, CPA, Joins The Hoffman Group
Press Release: Emily Rucinski, CPA, CCIFP®, Joins The Hoffman Group
Press Release: Lulu Kauffman, MBA, Joins The Hoffman Group
Press Release: Michael Price, CPA, Joins The Hoffman Group
Press Release: Melanie Gibson, CPA, Joins The Hoffman Group
Baltimore Business Journal Help Desk: How Business Owners Can Manage Their Cash Flow During COVID-19
Summer 2020 Manufacturer
For many manufacturers, 2020 has been a year like no other due to the novel coronavirus (COVID-19) pandemic, and cash flow is a major issue. The CARES Act retroactively modifies certain business-related sections of the Tax Cuts and Jobs Act (TCJA) that can help provide quick liquidity. To take full advantage of these CARES Act provisions, however, you may need to file one or more amended tax returns.
Spring 2020 Construction Industry Advisor
The classification of workers as independent contractors or employees has significant implications–both tax and nontax–for all businesses. But this issue is particularly important for construction companies, given the widespread use of subcontractors in the industry.
Winter 2020 Construction Adviser
Late last year, the Financial Accounting Standards Board granted a one-year reprieve from the new lease accounting rules to private companies that comply with Generally Accepted Accounting Principles (GAAP). This means that GAAP-compliant construction businesses with a calendar year end now have until 2021 to implement Accounting Standards Codification Topic 842, Leases.
Winter 2019 Manufacturer
A company car can be a valuable perk for business owners, salespeople and other employees. And now may be an ideal time to invest in business vehicles. The Tax Cuts and Jobs Act of 2017 (TCJA) more than tripled the luxury auto threshold, from $15,800 to an inflation-adjusted $50,000.
Fall 2019 Construction Industry Adviser
Companies that qualify as “small businesses” enjoy several tax benefits, including simplified tax reporting and the ability to defer taxes under certain circumstances. Your construction company’s eligibility for these advantages depends on your gross receipts, including those earned by certain related entities.
A closer look at a tax incentive for investing in small businesses
My favorite saying in life is “people do not know what they do not know.” There is nowhere this rings truer than in the complex world of tax law. Interpreting and implementing the internal revenue code (IRC) involves understanding many regulations, court cases, proposed regulations, and rulings, to name a few. Once we cross that barrier, there are incredible tax savings opportunities to be found—in particular, the ability to sell C corporation stocks income tax-free.
Summer 2019 Construction Industry Adviser
It’s been about 13 years since the Financial Accounting Standards Board (FASB) started overhauling its lease standard. For some time now, the new rules have been scheduled to take effect for private companies with fiscal years beginning after December 15, 2019—in other words, 2020 for companies with a calendar year end. However, as of this writing, there’s strong support from various organizations, including the AICPA and AGC, for delaying the implementation date at least one year.
Summer 2019 Manufacturer
“Don’t put off until tomorrow what you can do today,” Benjamin Franklin once advised. This timeless wisdom applies in many business scenarios, from taking advantage of growth opportunities to claiming tax deductions.
Spring 2019 Construction Industry Adviser
Insurance is a challenge for most construction businesses. You want to control your costs, but you may struggle to obtain affordable coverage of difficult-to-insure risks or fill “gaps” in your existing coverage. One potential solution for fast-growing or well-established construction businesses is captive insurance. It can help reduce premium costs while providing a variety of valuable financial and tax benefits.
Spring 2019 Manufacturer
To grow, manufacturers often focus on the top line of their income statement (revenue). But boosting profits is the key to long-term sustainable growth. In today’s competitive marketplace, owners must review their operations every year and ask: What can we do to make more money from each direct labor hour or dollar invested in machinery?
Winter 2019 Construction Industry Adviser
Is your construction business organized as a sole proprietorship or pass-through entity (such as a partnership, S corporation or limited liability company)? If so, the new 20% “pass-through” deduction can be a valuable tax break.
Winter 2019 Manufacturer
The Tax Cuts and Jobs Act (TCJA)–which passed late in 2017–is long and complicated. Its effects will vary from business to business, depending on each one’s structure and the nature of its operations. Here are four major changes that are likely to save taxes for domestic manufacturers starting in 2018.
Fall 2018 Manufacturer
Under the Tax Cuts and Jobs Act (TCJA), starting with tax years beginning in 2018, manufacturers with more than $25 million in average annual gross receipts will generally be able to deduct less interest expense than they could have deducted under prior law.
Summer 2018 Construction Industry Adviser
The Tax Cuts and Jobs Act (TCJA) slashed federal corporate income taxes from a top rate of 35% to a flat rate of 21%. As a result, many construction company owners organized as pass-through entities–such as S corporations, limited liability companies (LLCs) and partnerships–are rethinking their business structures.
Summer 2018 Manufacturer
The Tax Cuts and Jobs Act (TCJA) permanently lowers the federal income tax rate for C corporations to a flat 21%, starting in 2018. But manufacturers that operate as sole proprietorships and “pass-through” entities aren’t eligible for this reduced tax rate. Instead, they may be eligible for a “qualified business income” (QBI) deduction for 2018 through 2025.
Spring 2018 Construction Industry Adviser
Construction is a highly competitive industry in the private sector. But when it comes to public projects, winning a job can be even more cutthroat. That’s because government jobs are often subject to prevailing wage laws, such as the federal Davis-Bacon Act or the “little Davis-Bacon acts” that have been adopted in many states.
Spring 2018 Manufacturer
In December 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA) into law. This is the most comprehensive tax reform package in over three decades, and it will have a major impact on how much income taxes manufacturers and distributors will pay in 2018.
Winter 2018 Construction Industry Adviser
The passage of a new tax law in December was intriguing news for most construction company owners. Now that the dust has settled, let’s take a look at some of the highlights of the Tax Cuts and Jobs Act.
Highlights of the New Tax Reform
The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers.
Winter 2018 Manufacturer
Manufacturers tend to base product prices on direct production costs. Then they occasionally adjust prices for inflation or when the costs of raw materials or labor rates spike. Here’s why this simplified pricing model may compromise market share over the long run–and how market leaders factor market-based considerations into their pricing strategies.
Fall 2017 Construction Industry Adviser
As we approach the end of 2017, it’s once again time to explore strategies for reducing your construction company’s tax bill. Because every business is different, it’s important to work directly with your CPA to determine the right moves for you.