Publication
Legal Alert: Guidance on Section 199
As many prime contractors and subcontractors are now aware, construction companies taxed as corporations, and individuals who own construction companies taxed as partnerships (e.g., LLCs), may take a current deduction in calculating net income for federal income tax purposes equal to nine percent of the lesser of (i) the company’s net income from certain construction activities, or (ii) the company’s taxable income. This deduction is known as the §199 Deduction….
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Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 16 locations throughout the United States and in Mexico, including Los Angeles, Orange County and San Diego, California; Phoenix and Tucson, Arizona; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.