Tax Incentives Blog

The main trigger to consider conducting a fixed asset disposal study is when you plan to renovate real estate property. When planning to demolish or renovate a building – whether tearing out lighting, HVAC units or other components – these assets are effectively abandoned or retired from the building. The tangible personal property’s remaining depreciable basis can be written off (for tax) once the asset is retired.

The concept is simple enough, but the challenge can be ascertaining the correct value for the component parts of the building. By performing a cost segregation on the original acquisition of the building, you obtain the value of the original components at the snapshot in time of the acquisition, thereby allowing you to the write off the remainder of the basis upon disposition of that old property.

July is the last we’ve really heard about the Tax Extender, which was then approved by the Senate Finance Committee and has since been hanging around for Congress approval. The group of more than 50 tax credits and deductions includes the R&D tax credit, the WOTC and green building 179D deductions:

The R&D Tax Credit: This tax credit, created to spur and support research and development activities, would be modified to grant certain small businesses the option of claiming the credit against their Alternative Minimum Tax (AMT) or payroll tax liabilities.

An outsourced tax consultant offers CPA firms guidance in areas of tax credits and incentives where your accountants may not be knowledgeable enough. Typically, this is a partnership that’s ongoing and facilitates a sustained approach to maximizing tax savings for your clients.

However, a tax consultant could play an even more important role within your firm.

An engineering, design and manufacturing company, with several locations across the U.S., was audited by the state tax agency. The audit focused on state employment tax credits captured by the company over several years.

In today’s market, simply providing clients with referrals for tax incentives is no longer enough. Your CPA firm must be a go-to provider of corporate tax credit services if you hope to maintain long-term client relationships.

The process of capturing tax credits is often difficult, especiallywhen the CPAs at your firm are unfamiliar with tax rules and documentation requirements. However, it is advisable for your CPA firm to provide tax services, even if that means expanding beyond your comfort zone. It’s in your CPA firm’s best interest to expand your scope of services to include tax savings programs. The more avenues you pursue to help clients maximize savings and increase cash flow, the more valuable you become to clients.

Companies working to capture the maximum savings from corporate tax creditsoften fail to meet their savings potential when they pursue employment tax credits. The federal Work Opportunity Tax Credit (WOTC) programoffers a significant reduction in tax liability, but many businesses do not know how to increase their eligibility.

Fortunately, there are certain methods you can employ to help you capture the WOTC by identifying and hiring qualified employees. The following are three key ways to boost your eligibility rate for this profitable corporate tax credit:

The solar Investment Tax Credit (ITC) has been one of the largest federal policy mechanisms to support solar energy initiatives in the U.S. The solar ITC offers a substantial 30% tax credit for investing in solar systems for commercial property under Section 48.

Since the ITC was implemented in 2006, solar installation has experienced a compound annual growth rate of 76 percent. The Section 48 commercial ITC is used for utility-scale, commercial and residential sized projects. By installing, developing or financing a project, upon completion, your company may qualify for the 30% solar ITC.

This is an updated version of a blog article that was originally published in May of 2015.

Outsourced tax credits services are a valuable resource for CPA firms working to provide more effective delivery of tax savings to their clients.

Every client your CPA firm works with has different needs and aspirations when it comes to their budget. Pursuing tax incentives is a beneficial strategy for many businesses, but it’s sometimes difficult for CPAs to navigate the path that earns clients maximum tax savings.

A few weeks ago, on July 21, the Senate Finance Committee approved a two-year extension of numerous business tax credits and incentives in a 23-3 majority vote. If approved by Congress and signed by the President, the group of more than 50 tax credits and deductions would be extended through the end of 2016.

This group of tax provisions, known as tax extenders, represents substantial tax savings to both individuals and businesses. Many of the temporary tax extensions expired on January 1, 2015.

Research and development tax creditshelp many companies grow and improve their businesses. This valuabletax solutionreimburses you for time and money you spend in developing new and improved products and services. As such, you receive valuable tax savingswhile your customers’ needs are met.