Pit & Quarry, December 2018

TAXES several general rules might help guide the business to real tax savings that will be consistent year after year Dont spend money simply to reduce that tax bill After all a dollar spent does not equal a dollar worth of taxes saved or create a one dollar deduction Also keep in mind that if those accelerated deductions result in an NOL it can now only be used to offset tax bills down the road as there is no longer an NOL carryback Know thy accounting method Most but not all year end tax strategies work best for cash basis taxpayers Accrual basis aggregate producers report all income in the year it is earned and all expenses in the year they are incurred So just because a crushed stone sand or gravel operation is paying for a 2019 expense in 2018 doesnt always result in an immediate deduction on the 2018 tax return Chart a pro forma analysis of the aggregate operations tax liabilities Do this for 2018 using the new rules deductions and credits By using estimated income and expense figures this should not be too difficult Otherwise the true impact of reform will not be known until the tax return is prepared when it may be too late to make any moves to reduce it PUTTING IT TOGETHER Dont forget the type of entity the aggregate business operates as Depending on whether the crushed stone sand or gravel business files as a pass through entity such as an S corporation or partnership or as a regular C corporation significant tax savings might be achieved by changing how the operation files Obviously the numbers should be run now and possible changes considered early next year or in some cases right on the annual tax return Once the work is done and the alternatives have been tested would the aggregate business profit from a series of aggressive year end tax strategies Or would a more conservative approach produce lower tax bills in the years ahead Above all ensure the business is actually spending money and not just moving it around Finally if the business tax professionals are not already involved in the planning process now might be a good time to enlist their aid P Q Mark Battersby is a freelance writer who has specialized in taxes and finance for the past 25 years Announcing the 2019 HCEA Calendars Available NOW Featuring 12 beautifully restored 8 x10 black white photographs of construction and mining equipment from the early and mid 20th Century Its the only calendar of this type offered Order your 2019 HCEA Calendar today Order online at www hcea net or order by phone at 419 352 5616 with your Visa Discover or MasterCard or fill out the included form Dealers Contractors Producers Promote your business year round with your own customized HCEA Calendar Custom imprints available in quantities of fifty at discounted prices Order your calendars with CUSTOMIZED IMPRINTS online at www hcea net or by phone at 4 419 352 5616 with your Visa Discover D or MasterCard Makes a great holiday gift Customized for your business 2019 HCEA Calendar Order Form with HCEA imprint Please send _____ 2019 HCEA Calendars @ 1000 each _________ Total calendar cost _________ 675 sales tax Ohio residents only _________ Total enclosed shipping and handling is included Ship to Mailing address City State ZIP Daytime phone Card Exp CVC Send this form along with your credit card number check or money order U S funds only to HCEA 16623 Liberty Hi Road Bowling Green OH 43402 76 PIT QUARRY December 2018 pitandquarry com