BackPublications

Legal Alert: Guidance on Section 199

07/15/2011

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....

 Read the full alert.