But still, it depends on your specific circumstance whether cash method account or accrual method accounting will work best for you.
As with any profession, you can set in place a plan to make the most of your tax dollar. But, as you already have a clear idea of what you’ll be doing within your profession, you have an advantage. There are common deductions available to those that work in architecture, construction, and engineering. We’ll just mention a few here.
Clean Energy Manufacturing Credits
- This is common tax break that may be available to you and not to those in other professions
The American Recovery and Reinvestment Act offered a tax credit for investments in manufacturing facilities for clean energy technologies. If you don’t already know whether you meet these requirements, it would be best to find out.
- A common deduction for those in the industries of engineering, architecture, and construction.
- Standard Mileage Deduction:
- $.51 per mile in 2011
- Qualifying travel expenses may include travel to and from site, and other business travel, such as for supplies, to the bank, etc.
- Actual Expense Method Deduction:
- Deducts the business portion of actual expenses to operate your vehicle.
- Expenses may include gas, repairs, oil changes, etc.
Home Office Deductions
- Requires that you meet one of the following:
- The aforementioned is your principle place of business
- Where you meet clients
- Office is a separate structure, not attached to your house
- Where you store your inventory
Domestic Production / Activities Deduction
- Many architects, engineers, and contractors are entitled to a deduction for participation in domestic production.
- You can still amend tax returns if you missed this deduction in 2007, 2008, and 2009.
There is a lot more to consider if you are working in this industry. Consider our years of experience working with professions in the manufacturing industries.Give us a call at1-425-483-6600 or send us an email at email@example.com to schedule an appointment today.