b'ACCOUNTING COLUMNTAX STRATEGIES CRITICAL TO RETURNS IN A COVID-19 WORLDBY BRIAN LAVECK, CPA, CAodays challenging market conditions have had a directand minimize taxes. It is always more efficient to consider T impact on the real estate and construction industry.tax as part of the overall plan, rather than just at theThe impact of COVID-19 on the B.C. economyfinal stages. cannot be overstated, as well as its impact on working conditions. Adding to this pressure, market trends have already2.Employ the right set of skillsConsider your needs frombeen changing as baby boomers retire and millennials continueevery angle: planning, structuring, obtaining financing, to rent for longer than previous generations, and the cost of landpaying your taxes and reporting. Ensure the professionals has skyrocketed. you hire have the capability to work collaboratively as a team to achieve your goals. Think of it in the same way You can expect greater tax complexity as businesses takeyou think of a construction project: various expertssuch advantage of government support programs to keep operatingas engineers, architects, environmental experts and others during the pandemic. The complexity has also altered how we working together to build a final product. The right set view investments in real estate and construction. Companiesof advisors take a holistic approach and customize your operating in this industry are faced with the challenge of havingsolution to add value to your bottom line.to adopt new approaches in order to generate the desired rateof return.3.Embed tax into your strategic planWhether you areplanning the long-term growth of your business, your THE TAX MAZE retirement, or an intergenerational transfer of your business or estate, tax is a critical component. The long-term value of Whether you build, own or operate real estate, various taxesyour business or wealth can be significantly impacted by the come into play and have an impact on each project. With newtax planning you include in your overall strategic plan.incentives and relief programs being offered by all levels of government, you need to understand their tax ramifications andAnother question private company or family business owners adapt your strategy accordingly. should consider is estate planning. You may assume the next generation will succeed you in operations; however, this may not TOP 3 TAX PRACTICESbe part of their long-term plans. To ensure your results are optimized, consider these three keyStrategic planning in this area is critical and should be done well steps to managing taxes: in advance from both a family harmony and tax perspective. Waiting until retirement or a potential sale is too late and may 1.Make tax a priority from the startWhether you havesignificantly reduce the value of your business assets.an in-house tax department, rely on external tax advisors or employ a mix of both, include your tax advisors early on inA solid tax strategy can structure your organization and your process. They understand your goals and can provideinvestments in a manner that will more efficiently achieve your guidance in structuring your investments to mitigate riskssuccession goals. If, alternatively, you want to sell your business in the future or ensure it can give you an adequate payout, the right tax strategy can help you create a structure for your business and for specific investments that will work for you in the long term.CONCLUSIONTax planning during the best of times can be a critical component in achieving the returns for your business and GENERAL CONTRACTING|CONCRETE SPECIALISTS realizing your goalsnow, even more so. There is no one-size-CONSTRUCTION MANAGEMENT|DESIGN-BUILD fits-all tax solution, but having the right advisors help you plan COMMERCIAL|INDUSTRIAL| INSTITUTIONAL from the start will allow you to optimize your opportunities.HOSPITALITY|MULTI-FAMILY|RESIDENTIALGREYBACK CONSTRUCTION LTD. For more information, contact Brian Laveck, Thompson-Okanagan WWW.GREYBACK.COM | 250.493.7972 Regional Leader, Real Estate and Construction Services, at 250-979-1731 or brian.laveck@mnp.ca.42 SOUTHERN INTERIOR CONSTRUCTION ASSOCIATION'