You made it through tax season. Your 2025 returns are filed. You breathed a sigh of relief and got back to running your construction business.

Big mistake.

The period between March 15 and March 31 represents the single most valuable tax planning window of the entire year for Iowa contractors. Miss these opportunities, and you're leaving $10,000-$25,000 on the table—money that's gone forever.

Here's what your generic accountant isn't telling you: First quarter isn't just about filing last year's taxes. It's about positioning yourself for massive 2026 tax savings while the year is still young enough to matter.

Des Moines contractors who understand this timing advantage consistently outperform their competitors financially. Those who don't? They spend December scrambling for tax strategies that could have saved them double if implemented in Q1.

Why Q1 Is Your Most Powerful Tax Planning Quarter

Think about how most contractors approach taxes:

January-March: Panic over last year's taxes
April-November: Ignore taxes completely
December: Desperate equipment purchases and retirement contributions

This backwards approach costs you in three ways:

Cost #1: Limited Options
By December, your options are limited to quick fixes. Major strategies like S-Corporation elections, entity restructuring, or hiring family members? Too late.

Cost #2: Cash Flow Chaos
December tax moves drain cash exactly when you need it for year-end payroll, holiday bonuses, and January's slow season cash flow.

Cost #3: Suboptimal Decisions
Rushed December decisions mean buying equipment you don't need, making retirement contributions you can't afford, or missing deductions entirely.

The Q1 Advantage:

When you plan in Q1, you have:

• 9 months to implement major tax strategies
• Full visibility into 2025's final numbers to benchmark against
• Cash flow flexibility to structure moves optimally
• Time to course-correct if business performance changes

West Des Moines remodeling contractor Mike Patterson learned this the expensive way. In December 2024, his generic accountant told him to "buy some equipment" to reduce taxes. Mike panic-purchased a $68,000 excavator he didn't need, draining his operating cash right before Iowa's brutal winter slow season.

The result? He had to pass on two major spring projects because he couldn't afford materials deposits. Lost revenue: $134,000.

What should have happened: A Q1 2025 planning session would have identified that Mike needed equipment, but not until June when his spring projects ramped up. He could have structured a strategic purchase that aligned with business needs AND tax savings.

That's the difference between reactive December tax prep and proactive Q1 tax planning.

Critical Q1 Tax Move #1: Lock In Your Q1 Estimated Tax Payment Strategy

The April 15 deadline isn't just for 2025 tax returns. It's also when your first quarter 2026 estimated tax payment is due.

Most construction contractors handle this completely wrong.

The Generic Accountant Approach (Wrong)

Your typical CPA will calculate your 2026 estimated taxes like this:

1. Take your 2025 total tax liability
2. Divide by 4
3. Tell you to pay that amount on April 15, June 16, September 15, and January 15

Example: 2025 total taxes = $52,000
Generic accountant says: Pay $13,000 quarterly

Why This Fails for Contractors:

Iowa construction is wildly seasonal. Your revenue pattern looks something like:

• Q1: 15% of annual revenue (slow winter)
• Q2: 35% of annual revenue (spring ramp-up)
• Q3: 40% of annual revenue (peak season)
• Q4: 10% of annual revenue (winter slowdown)

Paying equal quarterly amounts creates two massive problems:

Problem 1: Q1 Cash Flow Crush
You're paying $13,000 in April when you've only generated 15% of your annual income. That's cash you desperately need for spring hiring, equipment prep, and materials deposits for your pipeline of projects.

Problem 2: Q3 Underpayment
By September, you've generated 90% of your annual income but only paid 75% of your estimated taxes. Hello, underpayment penalties.

The Performance Financial Approach (Correct)

We calculate estimated taxes based on when you actually earn the income:

Annualized Income Installment Method:

• Q1 payment (April 15): $5,200 (10% of estimated annual tax)
• Q2 payment (June 16): $15,600 (30% of estimated annual tax)
• Q3 payment (September 15): $20,800 (40% of estimated annual tax)
• Q4 payment (January 15): $10,400 (20% of estimated annual tax)

Result for Mike Patterson:

• $7,800 more cash flow available in April for spring projects
• No underpayment penalties
• Payments aligned with actual business revenue cycle

But here's the critical Q1 deadline: To use the annualized income method, you need proper monthly bookkeeping from January through March. If you're scrambling to catch up in April, it's too late.

Book a Tax & Accounting Analysis to implement seasonal estimated tax planning for 2026.

Iowa-Specific Q1 Estimated Tax Traps

Iowa has different estimated tax deadlines than the IRS:

• Federal Q1: April 15
• Iowa Q1: April 30

Miss the Iowa deadline and you're paying penalties even if you paid federal on time.

Worse: Iowa calculates underpayment penalties differently than the IRS. You can be compliant federally but owe Iowa penalties—something generic accountants discover only when you get the bill.

Ankeny HVAC contractor Tom Bradley paid his federal estimated taxes perfectly in 2025. His generic accountant never mentioned Iowa's separate requirements. Result? $3,140 in Iowa underpayment penalties that could have been completely avoided.

Critical Q1 Tax Move #2: Make 2025 SEP-IRA Contributions Before Your Deadline

Here's a tax strategy so powerful it's almost unfair: You can make 2025 retirement contributions until your 2025 tax return deadline (including extensions).

For S-Corporation owners, this means you have until September 15, 2026 to make employer retirement contributions that reduce your 2025 taxes.

Translation: You're filing your 2025 return in March, discovering you owe $16,500 in taxes, and thinking "I wish I'd saved more for retirement."

Good news: You still can.

SEP-IRA: The Q1 Tax Reduction Powerhouse

A SEP-IRA (Simplified Employee Pension) allows small business owners to contribute up to 25% of compensation or $70,000 (2025 limit) to their retirement account.

The Magic: These contributions are:

• Fully tax-deductible for 2025 (even if made in 2026)
• Reduce both income tax AND self-employment tax
• No complicated plan administration like 401(k)s

Real Example:

Johnston plumbing contractor Sarah Martinez filed her 2025 S-Corp return in March 2026 and owed $24,000 in federal taxes.

Her S-Corp salary: $125,000
Maximum SEP-IRA contribution: $31,250 (25% of $125k)

Before SEP-IRA:

• Taxable income: $125,000
• Federal tax: $24,000
• Total tax paid: $24,000

After $31,250 SEP-IRA contribution:

• Taxable income: $93,750
• Federal tax: $15,200
• Tax savings: $8,800
• Net cost of $31,250 retirement contribution: $22,450

Sarah put $31,250 into her retirement account and it only cost her $22,450 out of pocket because of the tax savings.

The Q1 Deadline Trap:

Most contractors discover this opportunity in April or later. By then, they've already allocated their Q1 cash to spring hiring, equipment, and materials.

Our Approach: We calculate optimal SEP-IRA contributions during your March tax prep, so you know exactly how much to contribute and can allocate cash accordingly in your Q1 budget.

Solo 401(k) vs. SEP-IRA: Which Q1 Contribution Strategy Wins?

If you don't have employees, you have another option: the Solo 401(k).

Solo 401(k) Advantages:

• Higher total contribution limits ($70,000 in 2025)
• Can make employee deferrals ($23,500 in 2025) PLUS employer contributions
• Roth contribution options
• Loan provisions

SEP-IRA Advantages:

• Much simpler setup and administration
• Lower annual costs
• Easier to establish if you missed the 12/31 deadline

Decision Framework:

Use a Solo 401(k) if:

• You want to contribute more than 25% of compensation
• You value Roth contribution options
• You don't mind annual Form 5500 filing once balance exceeds $250k

Use a SEP-IRA if:

• You want simple, low-maintenance retirement saving
• 25% of compensation is sufficient
• You missed setting up a 401(k) by December 31

Critical Deadline: Solo 401(k)s must be established by 12/31 of the contribution year. If you didn't set one up by December 31, 2025, you CANNOT make 2025 Solo 401(k) contributions—even in Q1 2026.

However, SEP-IRAs can be established up until your tax return deadline (including extensions). You can set up a SEP-IRA in September 2026 and still make it count for 2025.

Learn more about retirement plan strategies for contractors.

The Employee Complication

Both SEP-IRAs and Solo 401(k)s have a catch: If you have employees, you must contribute to their accounts too.

SEP-IRA Rules:Must contribute the same percentage for all eligible employees that you contribute for yourself.

Example: You contribute 20% of your $125k salary ($25,000). You must also contribute 20% for your field supervisor making $68,000 ($13,600).

Total cost: $38,600 instead of $25,000.

Solo 401(k) Rules:Only available if you have NO employees (except spouse).

The Planning Opportunity:

Many Iowa contractors structure their businesses to separate owner activities from employee activities:

• Operating Company: Has employees, pays owner minimal salary
• Management Company: Owner's S-Corp with no employees, receives management fees

This structure allows Solo 401(k) contributions on management fees while keeping employee retirement costs minimal.

Important: This requires proper legal structure and documentation. We coordinate with business attorneys to implement these strategies correctly.

Critical Q1 Tax Move #3: Execute Strategic Equipment Purchases with Section 179

Your December equipment purchases probably weren't strategic. Your Q1 equipment purchases can be.

Here's what most contractors don't understand about equipment depreciation:

Section 179 Deduction:

• Immediate expensing up to $1,250,000 (2025)
• Equipment must be purchased AND placed in service by 12/31
• Deduction limited to business income

Bonus Depreciation:

• 40% immediate expensing in 2025 (phasing down from 60% in 2024)
• No income limitation
• Applies to new equipment only

Why Q1 Equipment Planning Beats December Panic Buying

Grimes excavation contractor Dave Thompson needed a new skid steer. His options:

December 2025 Panic Buy:

• Purchase: $78,000 skid steer
• Section 179 deduction: $78,000
• Tax savings: $28,080 (36% tax bracket)
• Problem: Paid cash in December, killing Q1 cash flow
• Equipment sat unused January-March (Iowa winter)

Q1 2026 Strategic Plan:

• March planning: Identify equipment need
• May purchase: $78,000 skid steer (used June-December)
• Section 179 deduction: $78,000 (2026 taxes)
• Tax savings: $28,080 (applied to 2026)
• Cash flow: Preserved for spring season

The Difference:Strategic Q1 planning aligned equipment purchase with actual business need AND cash flow availability. Dave got the same tax benefit while maintaining healthy cash reserves during critical spring season.

The 2026 Bonus Depreciation Cliff

Bonus depreciation is declining each year:

• 2024: 60%
• 2025: 40%
• 2026: 20%
• 2027: 0%

Planning Implication: If you're buying major equipment anyway, accelerating purchases into 2026 vs. 2027 can save thousands in taxes.

Example: $200,000 equipment purchase

2026 Purchase:

• Bonus depreciation: $40,000 (20%)
• Section 179: $160,000
• Total 2026 deduction: $200,000
• Tax savings: $72,000

2027 Purchase:

• Bonus depreciation: $0 (0%)
• Section 179: $200,000
• Total 2027 deduction: $200,000
• Tax savings: $72,000 (same total)

BUT: In 2027, you'll likely be in a lower tax bracket if equipment purchases caused a loss. Strategy requires forecasting 2026 vs. 2027 income.

Performance Financial models your multi-year equipment strategy to optimize timing and depreciation methods.

The Vehicle Depreciation Quirk

Vehicles over 6,000 lbs (most contractor trucks) qualify for full Section 179 expensing. Vehicles under 6,000 lbs face luxury auto depreciation limits.

2025 Luxury Auto Limits:

• Year 1: $20,800 (with bonus depreciation)
• Without bonus: $12,800

Translation: That $88,000 crew cab pickup? Full $88,000 deduction.
That $48,000 sedan for your sales manager? Only $20,800 first year deduction.

The Q1 Planning Move:

If you purchased vehicles in late 2025, we review whether you maximized depreciation. Many contractors discover they didn't elect Section 179 properly and left deductions on the table.

You can correct this by filing an amended return or making the election on your 2026 return if the vehicle was purchased in 2025.

Generic accountants rarely review this. Construction-specialized CPAs do it automatically.

Critical Q1 Tax Move #4: Implement Family Employment Strategies

Hiring your kids is one of the most powerful tax strategies for small business owners, but it requires proper Q1 setup.

How Family Employment Saves Taxes

When you hire your minor children (under 18) in your business:

Tax Benefit #1: Income Shifting
Income moves from your 37% tax bracket to their 0% bracket (via standard deduction).

Tax Benefit #2: Payroll Tax Exemption
Children under 18 working in parent's sole proprietorship avoid:

• Social Security tax (12.4%)
• Medicare tax (2.9%)
• Federal unemployment tax

Tax Benefit #3: Retirement Contributions
Kids with earned income can contribute to Roth IRAs, creating tax-free growth for decades.

The Real-World Numbers

Clive roofing contractor Jennifer Walsh has two teenagers (ages 15 and 17).

Her 2026 Plan:

• Hire both kids to do administrative work, job site cleanup, material organization
• Pay each $13,000 for the year ($250/week during summer, $110/week during school)
• Total wages: $26,000

Tax Impact:

Without kids on payroll:

• Jennifer's business income: $295,000
• Her tax bracket: 35% federal + 8.53% Iowa + 15.3% self-employment
• Tax on $26,000: $15,356

With kids on payroll:

• Jennifer's business income: $269,000 (reduced by $26k wages)
• Kids' income: $13,000 each
• Kids' tax: $0 (below $15,000 standard deduction for 2025)
• Tax savings: $15,356

Additional Benefit:
Kids deposit their $13,000 into Roth IRAs. This money grows tax-free for 50+ years. Assuming 8% returns, their combined $26,000 contributions become $1,270,000 tax-free by retirement.

Total family benefit: $15,356 in immediate tax savings PLUS $1.27 million in tax-free retirement wealth.

The Q1 Implementation Deadline

To maximize 2026 benefits, you must:

By March 31:

• Set up proper payroll system
• Create written job descriptions
• Document wage rates (must be reasonable)
• Establish time tracking system

Starting April 1:

• Begin paying kids through payroll
• Track hours worked
• Document actual work performed

Critical: The IRS audits family employment aggressively. You need bulletproof documentation:

• Reasonable wages for actual work performed
• Contemporaneous time records
• Age-appropriate job duties
• Payments made via proper payroll (not cash)

The Audit Story:

Des Moines contractor got audited for paying his 12-year-old $19,000 for "consulting services." IRS disallowed the entire deduction plus penalties because:

• Wage was unreasonable for a 12-year-old
• No time records
• No documentation of services performed
• Paid via cash and personal checks

Our Approach:
We help you design legitimate family employment plans with defensible wage rates, proper documentation systems, and job duties appropriate for your kids' ages and your business needs.

The S-Corp Family Employment Trap

Family employment rules differ by entity type:

Sole Proprietorship (Schedule C):

• Kids under 18 exempt from payroll taxes
• Parents' payments exempt from payroll taxes

S-Corporation:

• Kids subject to income tax withholding
• Still subject to Social Security and Medicare (until age 18)
• Parents always subject to payroll taxes

Planning Implication:
Some contractors maintain a sole proprietorship for certain business activities specifically to enable payroll tax-free family employment.

Learn about optimal entity structuring.

Critical Q1 Tax Move #5: Review and Correct 2025 Missed Opportunities

Q1 is your last chance to fix 2025 tax mistakes before they become permanent.

Amended Return Opportunities

You can amend your 2025 return if you:

• Missed deductions
• Made calculation errors
• Received corrected forms (K-1s, 1099s)
• Discovered unreported income

Time Limit: 3 years from original filing deadline

Common Amendments We File:

Missed Section 179 Election:
Contractor bought $48,000 equipment in December but accountant forgot to elect Section 179. Amendment saves $17,280.

Incorrect Home Office Deduction:
Generic accountant used simplified method ($5/sq ft, max $1,500). Actual method would have yielded $8,900 deduction. Amendment saves $2,664.

Unreported Business Miles:
Contractor kept mileage logs but accountant never asked for them. 19,000 miles × $0.70 = $13,300 deduction. Amendment saves $4,788.

SEP-IRA Contribution Not Reported:
Made contribution but accountant didn't include on return. Amendment saves $11,400.

The Amended Return Strategy

Generic accountants avoid amendments because they're extra work. Construction-specialized CPAs actively look for amendment opportunities because we're compensated based on the value we deliver, not the hours we work.

Our Process:

1. Review your past 3 years of returns
2. Identify missed deductions and planning opportunities
3. Calculate potential refund from amendments
4. File amendments for any year with $2,000+ potential refund
5. Use those refunds to fund 2026 tax strategies

Norwalk general contractor Steve Harrison hired us in March 2026. We reviewed his 2023-2025 returns and found:

• 2023: $3,600 missed deductions
• 2024: $7,200 missed deductions
• 2025: $4,500 missed deductions

Total recovery: $15,300 in refunds, which Steve used to fund his 2026 SEP-IRA contribution.

State Tax Review

Iowa has unique deductions and credits that many generic accountants miss:

Iowa Geothermal Heat Pump Tax Credit:
20% of installation costs, up to $5,000

Iowa Solar Energy System Tax Credit:
50% of federal credit (15% of costs)

Iowa Research Activities Credit:
6.5% of qualifying research expenses

Iowa Charitable Conservation Credit:
50% of qualified land donations

Contractor Impact:
Many contractors install energy-efficient systems in their shops or offices but never claim the credits because generic accountants don't specialize in Iowa tax law.

Critical Q1 Tax Move #6: Structure Q1 Business Investments Strategically

Q1 is when you should be making major business investments—if structured correctly.

The Hiring Decision

Spring hiring season is critical for contractors. But most approach hiring incorrectly from a tax perspective.

W-2 Employees vs. 1099 Contractors:

Many contractors misclassify workers as 1099 contractors to avoid payroll taxes and administration.

The IRS Crackdown:
Employee misclassification is one of the IRS's top audit priorities. Penalties include:

• Back payroll taxes (15.3% × wages × years)
• Penalties (up to 40% of taxes owed)
• Interest on unpaid taxes
• Potential criminal charges for willful violations

The Test:
IRS uses 20 factors to determine worker classification. Key factors:

• Behavioral control (who directs when/where/how work is done)
• Financial control (who provides tools, bears business risk)
• Relationship type (permanence, benefits, written contracts)

Real Example:

Pella framing contractor got audited and owed $197,000 in back taxes because he classified his 8-person crew as independent contractors when they were clearly employees.

Our Approach:
We help contractors implement compliant staffing structures that balance tax efficiency with IRS compliance. Sometimes this means proper 1099 arrangements with legitimate subcontractors. Sometimes it means accepting the cost of proper W-2 employees.

Q1 Planning: If you're hiring for spring/summer, let's structure it correctly from day one rather than fixing a mess later.

The Equipment Financing Decision

Cash purchases deplete working capital. Financing preserves cash but creates interest expense.

Strategic Framework:

Use Cash When:

• You have excess cash reserves (6+ months operating expenses)
• Interest rates are high (8%+)
• You want maximum Section 179 benefit

Use Financing When:

• Cash flow is tight
• Interest rates are reasonable (6% or below)
• You need to preserve operating cash for spring season

The Q1 Opportunity:
Equipment dealers offer best financing in Q1-Q2 (trying to hit sales goals). You'll get better rates in March than December.

Tax Treatment:
You still get full Section 179 deduction even with financing, but you spread cash outflow over 3-5 years.

Newton concrete contractor James Rodriguez financed a $130,000 mixer truck in March 2026:

• Section 179 deduction: $130,000 (saves $46,800 in taxes)
• Down payment: $13,000
• Monthly payment: $2,500
• Tax savings: $46,800 cash back, net cost $33,800 out of pocket

Strategy preserved $117,000 in working capital for spring season while generating $46,800 tax benefit.

Critical Q1 Tax Move #7: Implement Health Insurance Strategies

S-Corporation owners can deduct health insurance premiums, but it must be structured correctly.

The S-Corp Health Insurance Process

Step 1: Business Pays Premiums
S-Corp pays health insurance premiums for shareholder-employees.

Step 2: Add to W-2 Wages
Premium amounts are added to Box 1 of your W-2 (income tax) but not Box 3/5 (payroll taxes).

Step 3: Deduct on Personal Return
You deduct the premiums on your 1040 (Form 1040, Line 17).

Result:
Premium is deductible for income tax purposes but exempt from 15.3% payroll taxes.

The Savings:

Monthly premium: $2,100
Annual premium: $25,200

Without S-Corp structure:

• Paid with after-tax dollars
• No deduction
• Effective cost: $25,200

With S-Corp structure:

• Deductible against income tax (saves $9,072 at 36% rate)
• Exempt from payroll taxes (saves $3,856 at 15.3%)
• Total savings: $12,928
• Net cost: $12,272

Q1 Implementation:

If your S-Corp wasn't properly paying your health insurance in 2025, you need to:

1. Amend your 2025 W-2
2. File corrected W-3 with SSA
3. Claim the deduction on amended 1040

This must be done in Q1 to maximize 2026 benefits going forward.

HSA Strategy for Contractors

Health Savings Accounts are possibly the most tax-advantaged accounts available:

Triple Tax Benefit:

1. Contributions are tax-deductible
2. Growth is tax-free
3. Withdrawals for medical expenses are tax-free

2025 Contribution Limits:

• Individual: $4,300
• Family: $8,550
• Age 55+ catch-up: $1,000

Strategy for Iowa Contractors:

Max out HSA contributions in Q1 when cash flow allows, creating tax deduction that reduces quarterly estimated payment obligations throughout the year.

Example: Family HSA contribution of $8,550 in March saves $3,078 in taxes (at 36% bracket). That $3,078 reduces your April estimated tax payment, preserving operating cash.

Schedule a tax planning session to implement HSA strategies.

Critical Q1 Tax Move #8: Address Multi-State Tax Issues Before They Compound

Many Iowa contractors work projects in Nebraska, Illinois, Missouri, or South Dakota.

The Problem:
Each state has different rules about when you trigger tax filing requirements.

Iowa: Generally requires filing if you perform services in Iowa
Nebraska: Has reciprocal agreement with Iowa for wage income
Illinois: Requires filing if gross income exceeds $1,000
Missouri: Requires filing for any Missouri-source income
South Dakota: No income tax

The Nexus Nightmare

"Nexus" means you've created sufficient connection to require filing and paying taxes in that state.

Common Nexus Triggers:

• Performing services in the state
• Owning property in the state
• Having employees in the state
• Storing equipment in the state

Real Disaster:

Davenport electrical contractor worked major projects in Illinois for 3 years. His generic accountant never mentioned Illinois filing requirements.

Illinois Department of Revenue found him in year 4:

• Back taxes: $44,000
• Penalties: $17,600
• Interest: $7,800
• Total bill: $69,400

Prevention:
Q1 is when you should review where you worked in 2025 and determine multi-state filing requirements. You have until April 15 (or October 15 with extension) to file non-resident state returns.

Multi-State Quarterly Estimated Taxes

If you owe multi-state taxes, you also owe multi-state estimated payments.

Iowa Contractor working Nebraska projects:

• Must make Iowa estimated payments
• Must make Nebraska estimated payments
• Must coordinate to avoid double-taxation
• Must claim credit for taxes paid to other states

Our Process:
We analyze your project locations, calculate multi-state tax obligations, and structure estimated payments to minimize total tax burden while maintaining compliance in all jurisdictions.

The March 31 Deadline Summary

Here's your complete Q1 tax action plan:

By March 15:

‍✅ File 2025 S-Corp return (or extension)
✅ Review K-1 for accuracy
✅ Calculate Q1 2026 estimated taxes

By March 31:

‍✅ Implement seasonal estimated tax payment strategy
✅ Make 2025 SEP-IRA contribution if applicable
✅ Set up family employment payroll system
✅ Review 2025 return for amendment opportunities
✅ Structure Q2 equipment purchases
✅ Implement S-Corp health insurance reimbursement
✅ Address multi-state tax filing needs
✅ Schedule Q2 tax planning session

By April 15:

‍✅ Pay Q1 federal estimated taxes
✅ File personal 1040 (or extension)

By April 30:

‍✅ Pay Q1 Iowa estimated taxes

Why Generic Accountants Miss These Q1 Opportunities

Your typical CPA firm operates in crisis mode from January through April. They're buried in tax prep work, which means:

No Time for Planning:
They're focused on filing returns, not developing strategies.

No Construction Expertise:
They don't understand contractor-specific issues like job costing, progress billing, or retention.

No Proactive Communication:
You'll hear from them when they need information, not when you need guidance.

No Year-Round Support:
After April 15, they disappear until next January.

The Performance Financial Difference:

We structure our firm around year-round strategic tax planning for contractors:

Q1 Focus:
While other firms are in crisis mode, we're planning our clients' Q1 tax moves because their 2025 returns are already done (we don't wait until March to start).

Industry Specialization:
We understand contractor-specific challenges like seasonal cash flow, job costing, equipment depreciation, and multi-state projects.

Proactive Communication:
We schedule quarterly planning sessions to implement strategies when they matter, not when it's too late.

Ongoing Support:
Monthly bookkeeping, quarterly tax planning, and unlimited consultation means you always have expert guidance.

Real Results from Q1 Tax Planning

Here's what proper Q1 planning delivered for actual clients:

Case Study 1: West Des Moines HVAC Contractor

Came to us in March 2025 from generic accountant:

• 2024 taxes: $71,000
• Zero retirement savings
• No equipment strategy
• Paying equal quarterly estimates (cash flow struggles)

Our Q1 2025 Implementation:

• Seasonal estimated tax payments (saved $8,600 in Q2 cash flow)
• SEP-IRA: $31,000 contribution (saved $11,160 taxes)
• Strategic Q2 equipment purchase: $88,000 (saved $31,680 taxes)
• Family employment: hired two kids (saved $8,800 taxes)

2025 Results:

• Total taxes: $44,000 ($27,000 savings vs. 2024)
• Retirement account: $31,000 funded
• New equipment: $88,000 acquired strategically
• Cash flow: Improved throughout year

Case Study 2: Ankeny Excavation Contractor

Worked with us since 2023:

• Implemented Solo 401(k) in Q1 2023
• Strategic equipment leasing program
• Multi-entity structure for equipment ownership
• Quarterly tax planning sessions

3-Year Results:

• Average annual tax savings: $45,000
• Retirement accounts: $220,000 accumulated
• Equipment fleet: Expanded without cash flow stress
• Business value: Increased 360% (better systems and financials)

Case Study 3: Johnston Remodeling Company

Started with us Q1 2024:

• Previous accountant: Charged $4,800 annually for basic tax prep
• Provided zero planning or strategy
• Returns consistently filed on extension

Our Q1 2024 Implementation:

• Comprehensive bookkeeping system
• Monthly job costing analysis
• Quarterly tax planning
• Cost: $12,600 annually

2024-2025 Results:

• Tax savings: $39,000 (2024) + $43,000 (2025) = $82,000
• Less fees: -$25,200 (2 years)
• Net benefit: $56,800
• ROI: 225%

Plus improved job costing revealed they were consistently underbidding concrete work by 18%. Correcting this added $71,000 in margin over two years.

Take Action in Q1 2026

You have two choices:

Choice 1: Wait Until December
Scramble for tax strategies when options are limited, cash flow is tight, and you're forced into suboptimal decisions.

Choice 2: Plan in Q1
Implement comprehensive strategies when you have time, flexibility, and maximum tax-saving opportunities.

The math is clear: Q1 planning delivers 2-3X more tax savings than December panic.

Book a Tax Reduction Analysis before March 31 to implement these strategies for 2026.

Our Des Moines CPA firm specializes in helping contractors maximize tax savings through strategic planning. We serve West Des Moines, Ankeny, Johnston, Clive, Grimes, Newton, Norwalk, Pella, Indianola, Altoona, and the entire Des Moines metro area.

Learn from successful contractors like those at Des Moines Concrete Contractor, [Iowa Remodeling Contractors](https://iowarem odeling.com/), Midwest Mechanical, Precision Plumbing, and All Seasons Landscaping who leverage Q1 tax planning for maximum savings.

Don't leave $25,000+ on the table because you waited until December.

Schedule your Q1 Tax Planning Session today →

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