Many business owners overpay in taxes each year without realizing it. At Whittaker CPAs, we work closely with companies in manufacturing, technology, and real estate, and we’ve seen firsthand how costly common tax mistakes can be. These industries offer powerful tax-saving opportunities, but only when your CPA knows how to uncover them.
Here are the most common tax mistakes we see in these industries, and how working with a specialized CPA can protect your bottom line.
1. Missing Industry-Specific Deductions
Each industry has unique deductions and tax strategies that don’t apply to everyone. Generalist CPAs often overlook these, leaving significant money on the table.
In Manufacturing:
Manufacturers often miss out on Section 179 and bonus depreciation for equipment, custom software, and vehicles. Many also fail to properly account for cost of goods sold (COGS), labor allocation, and inventory write-downs.
Commonly missed deductions include:
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Depreciation on machinery and tools
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Facility upgrades for safety or efficiency
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Research and development (R&D) tax credits
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Energy efficiency deductions (179D)
In Technology:
Tech companies may qualify for lucrative R&D credits—but many don’t claim them because they assume it only applies to “big innovation.” In reality, if your company builds, tests, or improves software, internal systems, or platforms, you likely qualify.
Other missed deductions:
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Software development and cloud infrastructure costs
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Employee training for new systems
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Section 174 amortization of R&D expenses
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In Real Estate:
Real estate investors and developers frequently overlook opportunities tied to depreciation and cost segregation. Accelerated depreciation schedules, especially under current bonus depreciation rules, can create major upfront tax savings.
Frequently missed areas include:
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Cost segregation studies
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Qualified improvement property (QIP)
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1031 exchange planning
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Passive activity loss limitations
2. Treating Tax as a Once-a-Year Task
Too many businesses see taxes as a year-end chore. But the most valuable tax strategies require planning throughout the year, timing purchases, shifting income, structuring deals, and optimizing cash flow.
A proactive CPA will help your business:
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Decide when to purchase or finance large equipment
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Time revenue recognition for optimal impact
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Classify workers properly to avoid penalties
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Evaluate entity structure for tax efficiency
Without real-time tax planning, your business may pay more than it should, or miss out on deductions you could have easily qualified for.
3. Poor Documentation and Reporting
You may be eligible for powerful deductions and credits, but if you don’t have the records to support them, they can be disallowed in an audit. We often see this issue in real estate and tech companies that move fast and don’t track every expense.
Common documentation gaps:
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Incomplete equipment purchase records
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Poor tracking of R&D project time and costs
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Lack of supporting detail in real estate rehab costs
We help clients implement simple systems for documentation that hold up under IRS scrutiny, without overwhelming their team.
4. Using a CPA Who Doesn’t Know Your Industry
The tax code is not one-size-fits-all. A CPA who understands your industry knows what to look for, what to ask, and how to proactively position your business for the best tax outcome.
At Whittaker CPAs, we specialize in helping:
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Manufacturers manage inventory, capitalize equipment properly, and use tax incentives to boost production ROI.
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Tech companies unlock R&D credits, optimize contractor vs. employee classification, and prepare for funding rounds or exits.
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Real estate investors and developers leverage cost segregation, 1031 exchanges, and passive loss strategies to reduce taxable income and reinvest faster.
Stop Leaving Money on the Table
Tax mistakes don’t just happen at filing time—they happen when your CPA doesn’t understand your business. At Whittaker CPAs, we dig deeper into your industry and align your tax strategy with your business goals.
Schedule a consultation today to find out what your current tax strategy might be missing.
