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Topic: The new “Revenue Recognition” regime that will change how contractors’ financial statements are to be prepared; impacts all contractors who prepare GAAP basis financial statements for banking, bonding, and reporting to federal and state agencies.
Key Aspects of the New Tax Law: Click Here The link above summarizes the key aspects we see in the new tax law. While it may be similar to other summaries, we urge you to join us for a more in-depth discussion as we present ABC’s Tax Update for Contractors, where we will focus on issues impacting construction companies here in South Florida.
Contractors use joint ventures for a variety of reasons, including: Bidding on work they otherwise could not complete (spreading risk), or jobs requiring minority or other special business enterprises; Securing bonding or financing to obtain and perform work; Specialization not within the contractor’s expertise; and Increasing access to local markets and global reach. This article provides an overview of some tax issues facing joint ventures. v Tax Structure According to IRC section 761, a “partnership” includes “… a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on.” For tax purposes, the typical structure of a joint venture is taxed as a partnership. If a separate entity is established under state law, it is generally considered to be a “pass-through,” similar to a limited liability company (LLC), or a partnership – whether that is a general partnership (GP), a limited partnership (LP), or a limited liability… read more →