CPA’s can offer additional tax breaks for their clients by partnering with a specialty tax group to unlock specialty areas of the tax code.

CPA’s provide an invaluable service to business, skillfully keeping client finances in line and limiting their tax burden. However, many CPA offices are focused on the more general rules of the tax code and do not have the resources to handle niche areas of the tax code that are business or activity-specific, or that require in-house tax engineers to complete highly specialized work. Therefore, accounting groups may consider partnering with a third party to expand their client offerings.

Business Owners Can’t Claim What They Aren’t Aware Of

Most business owners don’t know how to claim these specialty business tax incentives on their own, or are even aware that they exist. A third party tax group can walk your clients through their new savings. Working in tandem with skilled tax advisors is beneficial because they are able to determine, based on a client’s industry and activity, what requirements they meet and match them up with the various specific national and state tax codes.

4 Specialty Tax Areas to Look At

Cost Segregation

For Resurveying Property

This engineering-based study helps cut costs on any real estate that has been constructed, remodeled or purchased. A Cost Segregation Study allows tax experts to be able to distinguish aspects of the property that can be depreciated over shorter periods than the average rate. Real and personal property is recategorized into acquisition or construction costs and then applied to the appropriate IRS tax credit.

179D Deduction

For Energy-Efficient Commercial Buildings

179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on government projects.

The 179D tax provision allows:

• A tax deduction of up to $1.80 per square foot for both new and existing buildings.
• A $0.60/sq. ft. deduction for buildings that meet partial requirements
• This policy was extended through 2020, which means businesses who qualify have the opportunity to go back and save for 2018 & 2019

45L Credit

For Energy Reduction in Buildings

The 45L Tax Credit rewards eligible contractors for installing energy-saving elements to newly constructed single-family homes and low-rise residential buildings in an effort to reduce energy and power costs. The ideal candidates are Homebuilders and Multifamily Developers.

• Incentivizes owners, contractors and developers who build or renovate to reduce energy
• Property elements must reduce energy and power costs by 50%
• A $2,000 per dwelling credit can be claimed for the current tax year as well as past 3 tax years

Research & Development Tax Credit

For Increasing Research Activities

The U.S. Research and Development (R&D) Tax Credit was created as an incentive for businesses to take risks and undergo research activities to develop or improve their products, processes, or software. To this day, many companies have failed to take advantage of this lucrative tax credit in the past simply because they weren’t aware that they qualified.

• Reimburses companies for innovative activities taking place
• The credit can be claimed by a wide variety of industries
• Payroll taxes also qualify for the credit in some cases
• In addition to federal tax credits, many states offer additional incentives

What to Look for in a Third-Party Tax Partner

Your name and reputation is the most important aspect of your business, so it’s worth your time to research and evaluate any potential partners. Here are some additional things to consider:

How is their Service?

Your customers should be treated with white-glove service. Pick a group of tax experts with a good history, reputation and credibility. A smooth and positive experience from the clients’ end as well as additional tax savings can elevate the CPA group’s reputation and open the door to new referrals.

How is Their Documentation?

Your third party partner should prioritize formal and well-documented progress and project reports. You want a company whose services can withstand IRS scrutiny.

Taking the Next Step

National Tax Group is your trusted partner in maximizing your tax returns. Through a partnership, you will be able to introduce additional tax savings to your clients through the often underclaimed areas of the tax code that we specialize in. If you think your clients qualify for any of these tax savings, contact us at 561-257-3436 to start your partnership, or click here to learn more.

Commercial real estate owners can use strategic tax tools to minimize their tax liability and reap tremendous savings.

When it’s time to cut costs, business owners will often turn to their books to assess where they can save. Oftentimes, their first step is to cut investments, wages, or plans for growth. However, a Cost Segregation tax service makes it possible to receive a massive return on taxes without cutting costs to business assets and daily operations. It can also spare owners from having to negotiate a new growth strategy.

What is Cost Segregation?

Cost segregation is a lucrative tax strategy that allows business owners to maintain their current spending and save significant tax dollars on top of what they’re already earning.

Some components of a building depreciate at a faster rate than others, and need to be replaced before their typical 39-year depreciable life. During a study, real property is reclassified as personal property in order to accelerate depreciation, normally from 39 or 27.5 years, down to 5, 7 and 15 years. Once a Cost Segregation Study is performed by a licensed tax engineer and the refund is awarded, business owners are free to invest in higher quality improvements or assets that make a real difference.

Who Qualifies for a Cost Segregation Study?

A Cost Segregation Study can be particularly useful to professionals that own traditional commercial buildings, but it also massively beneficial to owners in the following industries:

• Assisted Living Facilities
• Auto Dealership
• Retail
• Hotel and Hospitality
• Food & Beverage
• Indoor Farming

If Cost Segregation is paired with other tax incentives, such as 179D, the savings could multiply.

What is the First Step?

An IRS audit-proof study should be performed by engineering tax specialists with years of experience.

The study will itemize some structural components of the property that are both permanent, such as building structure, and changeable, such as flooring. Other components could include the following:

• HVAC systems
• Bathroom appliances
• Flooring
• Pipes and Plumbing
• Temporary walls
• Stairwell

The depreciation period for these components will also be separated out. Our staff can survey property on-site anywhere in the country, and draw up a detailed report. Even though the current tax season is over for many, lucrative savings can still be uncovered in the form of an amended tax return.

The potentially monumental benefits can be the difference between a good fiscal year and a great one. Call National Tax Group at (561) 257-3436 a free initial consultation.

Hotel owners are constantly looking for additional revenue sources. What many don’t realize is that their next big financial boost is in one of the most overlooked places – their taxes.

What qualifies you for your next big tax break? Three factors can make a significant difference in the refund you see at the end of the tax year. Here’s where to look.

1. Property

If you are a hotel owner with property constructed, purchased, or remodeled after 1987 then you have a magnificent tax strategy available to you. What many hotel owners do not realize is how they can be taking advantage of Cost Segregation which can allow companies or individuals to increase their cash flow by accelerating depreciation deductions and deferring federal and state income taxes. All businesses should take full stock of their qualifying assets to see if there is potential for a shorter or accelerated depreciation expense. This can translate into huge returns for the business owner.

When investing in a Cost Segregation Study, it is important to work with national tax experts that can guide you through this often complex and time-consuming project. For an inexperienced professional, it can be challenging to differentiate between tangible personal property and a
building’s structural components.

Once the study is performed by a tax engineering specialist, not only will you receive a detailed analysis of all of the potential assets you are eligible for. Before your report is complete, you should also ask about special depreciable life for qualified leasehold improvements, retail and restaurant properties.

Accelerated depreciation is available for real estate assets that have been:

• Owned for several years
• Recently purchased
• Newly constructed
• Newly renovated

The best part about Cost Segregation studies is that they can be applied retroactively and prospectively.

179D: Reduce Your Carbon Footprint, Increase Your Tax Savings

The 179D tax credit offers significant tax savings related to new construction, expansions or renovations to projects. Many hoteliers are surprised to discover the potential windfall this tax savings opportunity represents. Here are a few key pointers about this significant tax deduction that benefit owners of commercial buildings of any type, including office buildings, industrial buildings, warehouses, retail spaces, multi-family homes, and apartment buildings:

• Applicants may earn up to $1.80 per square foot on each qualifying property
• Qualifying energy-saving systems include hot water systems, building envelope systems, HVAC systems, and interior lighting systems
• Taxpayers can apply for the 179D tax deduction for the same building multiple times, but the amounts awarded cannot exceed $1.80 per sq./ft. over time
• Parking garages, government-owned buildings, and hotels can also qualify

Additionally, government building projects may also be eligible for 179D. It is important to note that simply purchasing an already existing energy-efficient building will not qualify for the deduction. In order to claim it, the energy-saving systems must have been installed as part of a plan designed to reduce total energy and power costs.

45L: Go Green, Get Green

The purpose of 45L is to promote energy efficiency for personal dwellings. In exchange for the energy savings, the government provides developers a $2,000 tax credit per unit for reducing energy standards by 50%. The savings add up – qualifying builders and contractors can walk away with tens of thousands from this tax perk.

Many buildings are already eligible for some or all tax benefits related to improvement projects either completed within the normal course of business.

In order to receive the benefits, builders and contractors must apply and document the project before formally beginning the process of building. Some additional eligibility requirements are the following:

• The dwelling must have reduced energy consumption by at least 50%
• The dwelling can be a freestanding single-family home, townhouse, condo or apartment.
• Each dwelling within an apartment or condominium complex is eligible for a separate credit
• The building must be three stories or less
• Dwellings that have undergone substantial renovations are also eligible
• Qualifying properties must be sold or leased during the claimed tax year

2. Activities

In the world of tax credits, it is vital to clearly and thoroughly document all of your research and development expenses and activities, as they can add up to significant tax savings through the government-sponsored R&D tax credit. When the time for corporate taxes rolls around, not doing so can lead to getting less than you are eligible for, or not getting refunds or credits at all.

Ensuring that your team keeps formal and well-documented progress and project reports are the easiest way to compile this information when you go to claim any credits.

R&D: Getting Rewarded for Innovative Ideas & Practices

For the lucrative Research and Development tax credit, many companies’ qualifying business expenses are related to the investment in money and materials needed to create or improve upon a product, technique, or software application, as well as employee time.

A few R&D activities examples include, but are not limited to:

• Coordinating research or analysis
• Designing and developing new or improved internal software solutions
• Creating and designing prototypes
• Designing and creating new products, techniques or applications
• Modifying and upgrading current products, procedures or applications
• Reviewing hypothesis and experimentation results

3. Employees and Staff

As a business owner trying to take advantage of federal and state Research & Development tax credits, it’s also important to note that the following expenses regarding staff can also get your company a refund:

• Employee Wages – While employee wages are only eligible if the funds are given to an employee who performs qualified R&D tasks, this can be a significant write-off.
• Contract Research – If your company invests in a third-party contractor or consultant, the wages paid to that organization or individual are eligible for the R&D tax credit for up to 65% of the paid expense. This only applies if the organization or individual conducted an R&D qualified task, and your business must own all or a portion of the rights to the research.

Many different industries can take advantage of this credit. Speak to a specialized tax expert to find out more.

Your Last Stop May Not Be Your Accounting Firm

Skilled advisors that specialize in these niche areas of the tax code will be able to review any and all tax information thoroughly and ensure all steps of the process meet the needed requirements to minimize your tax liability.

Our team of tax professionals is waiting to speak with you and start the process of obtaining top-dollar savings. Contact National Tax Group at (561) 257-3436 for your free assessment today.

Commercial real estate owners are constantly looking for additional revenue sources. What many don’t realize is that their next big financial boost is in one of the most overlooked places – their taxes.

What qualifies you for your next big tax break? Three factors can make a significant difference in the refund you see at the end of the tax year. Here’s where to look.

1. Property

If you are a commercial building owner with property: constructed, purchased, or remodeled after 1987 then you have a magnificent tax strategy available to you. What many property owners do not realize is how they can be taking advantage of Cost Segregation which can allow companies or individuals to increase their cash flow by accelerating depreciation deductions and deferring federal and state income taxes. All businesses should take full stock of their qualifying assets to see if there is potential for a shorter or accelerated depreciation expense. This can translate into huge returns for the business owner.

When investing in a Cost Segregation Study, it is important to work with national tax experts that can guide you through this often complex and time-consuming project. For an inexperienced professional, it can be challenging to differentiate between tangible personal property and a
building’s structural components.

Once the study is performed by a tax engineering specialist, not only will you receive a detailed analysis of all of the potential assets you are eligible for. Before your report is complete, you should also ask about special depreciable life for qualified leasehold improvements, retail and restaurant properties.

Accelerated depreciation is available for real estate assets that have been:

• Owned for several years
• Recently purchased
• Newly constructed
• Newly renovated

The best part about Cost Segregation studies is that they can be applied retroactively and prospectively.

45L: Go Green, Get Green

The purpose of 45L is to promote energy efficiency for personal dwellings. In exchange for the energy savings, the government provides developers a $2,000 tax credit per unit for reducing energy standards by 50%. The savings add up – qualifying builders and contractors can walk away with tens of thousands from this tax perk.

Many buildings are already eligible for some or all tax benefits related to improvement projects either completed within the normal course of business.

In order to receive the benefits, builders and contractors must apply and document the project before formally beginning the process of building. Some additional eligibility requirements are the following:

• The dwelling must have reduced energy consumption by at least 50%
• The dwelling can be a freestanding single-family home, townhouse, condo or apartment.
• Each dwelling within an apartment or condominium complex is eligible for a separate credit
• The building must be three stories or less
• Dwellings that have undergone substantial renovations are also eligible
• Qualifying properties must be sold or leased during the claimed tax year

179D: Reduce Your Carbon Footprint, Increase Your Tax Savings

The 179D tax credit offers significant tax savings related to new construction, expansions or renovations to projects. Many architects and designers are surprised to discover the potential windfall this tax savings opportunity represents. Here are a few key pointers about this significant tax deduction that benefit owners of commercial buildings of any type, including office buildings, industrial buildings, warehouses, retail spaces, multi-family homes, and apartment buildings:

• Applicants may earn up to $1.80 per square foot on each qualifying property
• Qualifying energy-saving systems include hot water systems, building envelope systems, HVAC systems, and interior lighting systems
• Taxpayers can apply for the 179D tax deduction for the same building multiple times, but the amounts awarded cannot exceed $1.80 per sq./ft. over time
• Parking garages, government-owned buildings, and hotels can also qualify

Additionally, government building projects may also be eligible for 179D. It is important to note that simply purchasing an already existing energy-efficient building will not qualify for the deduction. In order to claim it, the energy-saving systems must have been installed as part of a plan designed to reduce total energy and power costs.

2. Activities

In the world of tax credits, it is vital to clearly and thoroughly document all of your research and development expenses and activities, as they can add up to significant tax savings through the government-sponsored R&D tax credit. When the time for corporate taxes rolls around, not doing so can lead to getting less than you are eligible for, or not getting refunds or credits at all.

Ensuring that your team keeps formal and well-documented progress and project reports are the easiest way to compile this information when you go to claim any credits.

R&D: Getting Rewarded for Innovative Ideas & Practices

For the lucrative Research and Development tax credit, many companies’ qualifying business expenses are related to the investment in money and materials needed to create or improve upon a product, technique, or software application, as well as employee time.

A few R&D activities examples include, but are not limited to:

• Coordinating research or analysis
• Designing and developing new or improved internal software solutions
• Creating and designing prototypes
• Designing and creating new products, techniques or applications
• Modifying and upgrading current products, procedures or applications
• Reviewing hypothesis and experimentation results

3. Employees and Staff

As a business owner trying to take advantage of federal and state Research & Development tax credits, it’s also important to note that the following expenses regarding staff can also get your company a refund:

• Employee Wages – While employee wages are only eligible if the funds are given to an employee who performs qualified R&D tasks, this can be a significant write-off.
• Contract Research – If your company invests in a third-party contractor or consultant, the wages paid to that organization or individual are eligible for the R&D tax credit for up to 65% of the paid expense. This only applies if the organization or individual conducted an R&D qualified task, and your business must own all or a portion of the rights to the research.

Many different industries can take advantage of this credit, including manufacturing, architecture, breweries, software developers, cosmetics, agriculture, health laboratories and much more.

Your Last Stop May Not Be Your Accounting Firm

Skilled advisors that specialize in these niche areas of the tax code will be able to review any and all tax information thoroughly and ensure all steps of the process meet the needed requirements to minimize your tax liability.

Our team of tax professionals is waiting to speak with you and start the process of obtaining top-dollar savings. Contact National Tax Group at (561) 257-3436 for your free assessment today.

 

The Sunshine State’s Department of Revenue has awarded millions to businesses performing qualifying Research & Development activities. Are you next?

What business owner would turn away a few thousand dollars or more? The federally-funded Research & Development tax credit is open to many businesses, but only taken advantage of by a small percentage of qualifying companies.

For Florida business owners, R&D presents an opportunity to leverage the activities they’re already doing with a qualified workforce. The key to tapping into this lucrative dollar-for-dollar tax credit is skillfully working through the legal language with a trusted group of tax professionals, and then assessing and documenting your process step-by-step.

How to Monetize Florida Research & Development Activities

Under the guidance of an R&D tax credit expert, qualified industry businesses who pay Florida corporate income tax may apply online through the Florida Department of Revenue in March of each year during tax season. There is also the potential for additional savings, as excess credits may be carried forward up to 5 years.

Florida Research and Development (R&D) Tax Credit works a little differently. For starters, only companies who received the federal R&D credit are qualified to receive the state R&D tax perks. Furthermore, the credit is only available to certain industries that are mostly rooted in hard sciences and technology, including the following:

• Clean Energy
• Life Sciences
• Digital Cloud Technology
• Aviation & Aerospace
• Homeland Security & Defense
• Financial & Professional Services
• Nanotechnology
• Transportation & Distribution
• Additional Manufacturing

Like many other state R&D regulations, the activities must take place in the state – no research activities outside of Florida will qualify. What makes the Florida R&D credit unique is that it is limited to C Corporations only.

Is Your Company Qualified to Receive Florida R&D Tax Credits?

In order for a company to be entitled to Research & Development tax credits, they must adhere to the following state regulations:

• Companies that apply must first be certified by the Department of Economic Opportunity as a qualified target business industry\
• A company must claim the US R&D credit in order to claim the Florida state credit.
• The credit is equal to 10 percent (10%) of the excess of the Qualified Research Expenses (QREs) over the base amount.
• The base amount equals the average of the previous four tax years’ QREs.
• The credit is capped at 50% of a company’s tax liability.

Florida state companies should assess if they are qualified to receive R&D tax credits under the federal guidelines, as this will determine if they can receive the state R&D tax perks as well. National Tax Group tax professionals lead companies through a clear process to see if they qualify for these lucrative dollar-for-dollar benefits. Give our tax specialists a call at (561) 257-3436 to schedule your free initial assessment.

Provide added value to your real estate by opting for energy efficiency and enjoy tax savings for your investment.

The benefits of energy efficiency have become an invaluable asset in the business world. Tenants are looking for eco-friendly living options, offices are encouraged to reduce their energy spending and business owners are being rewarded for finding innovative ways to go green.

Understanding Government-Sponsored Tax Perks for Energy Efficiency

Tax breaks for energy savings are great news for any property owner who wants to get the most out of their investments. Any “eligible contractor,” which is defined by any commercial or residential building owner, architect, or contractor can apply for the 45L tax credit and 179D tax deduction. Because these deductions can apply for new buildings as well as renovated buildings that have installed energy-saving elements, the tax savings are not limited to recent construction projects.

Plus, there is even more savings out there when retroactively claiming past tax years. For example, your business can not only claim an energy-efficiency deduction for your 2020 projects, but it may also be able to claim it for work completed in 2018-2019.

Who can earn energy-efficient tax credits?

• Commercial Building Owners
• Homebuilders
• Architects
• Engineers
• Multifamily Developers
• Real Estate Owners
• General Contractors

What types of buildings or projects can qualify for energy-efficient tax breaks?

• Affordable housing projects
• Government buildings
• Nursing home facilities
• Residential condominiums
• Student housing
• Commercial buildings and their renovations
• Industrial facilities
• Retail buildings
• Office buildings
• Apartments
• Warehouses

What is the Process for Claiming these Tax Incentives?

The first step to claiming a government-sponsored tax perk for energy efficiency is teaming up with a qualified group of national tax experts. A detailed energy analysis following a site visit will need to be run and reported to a certified third-party. This ensures that the report is audit-proof for the IRS.

Our process starts with a FREE no-obligation assessment of your current building projects and a thorough review of your 2020 work. We will then detail the step-by-step process to fully claiming the tax deductions you deserve under the current federal outlines.

At National Tax Group, we can uncover tax rewards for your company. Call our business tax experts at (561) 257-3436 to schedule your free initial assessment and determine your eligibility.

Corporate tax day has passed, but amendments can provide ample recovery for any size businesses.

While company owners strategize to slowly regain business after the financial shakeup of 2020’s first half, many overlook taxes as a way to leverage more revenue. Even though the current tax season is over for many, lucrative savings can still be uncovered in the form of an amended tax return.

With the help of national tax experts, companies can claim what they should have received during a previous tax season. Many CPA’s will team up with third-party tax companies like National Tax Group to help businesses to reclaim their missed tax credits and minimize their tax liability. Any possible credits or returns are calculated and compared to the actual tax paid by the company, then the difference is awarded to the taxpayer in the form of refunds or payment.

Typically, amendments can be done up to three or four years in the past, depending on the lookback window of each tax provision. Here are some examples of corporate tax credits and deductions that can be amended anytime throughout the calendar year:

• Research & Development Tax Credit
• Cost Segregation Study
• 45L Energy-Saving Tax Credit
• 179D for Commercial Energy Reduction

Amendments are a powerful tool that can add up to thousands in savings for the taxpayer. The cash flow effect can be especially significant if two or more tax years are involved in the calculations.

The Tax Season is Over…But Your Benefits are Still Out There

Tax amendments can uncover significant savings for business owners, builders, designers and property owners. The process is best approached with an experienced team of tax specialists on your side. Call National Tax Group at 561-257-3436 to start your free assessment.

R&D incentivizes businesses to continue efforts improving products, processes or services in The Evergreen State.

Though the federal Research & Development (R&D) tax credit is an invaluable tool for Washington companies of many sizes, it is also one of the most overlooked tax benefits in the current US tax system.

This federal government credit rewards businesses for taking risks and providing jobs. However, not only do Washington businesses often leave money on the table by not claiming the credit at all, but they also frequently fail to claim their entire credit because of lack of knowledge or documentation. This dollar-for-dollar cash reward adds up quickly, but the proper procedure needs to be put in place to maximize one’s rewards.

How Washington companies can apply for the Federal R&D tax credit

From farming to manufacturing to high tech, the Federal credit is available to companies of all sizes and in a variety of industries. If you perform any type of R&D efforts, such as the development of a new product, improvement of a current product, or expanding of a new formula, your best course of action is to work with national tax experts to leverage your activities into a significant credit that makes a difference.

Other activities that qualify for R&D tax credits include:

• Molding plastics
• Developing a new mobile app
• Designing new irrigation systems
• Researching an energy-efficient process for brewing beer

As you can see, qualified activities come from a variety of industries. There are some activities that do not qualify for R&D credits, however.

Examples of excluded R&D Tax Credit activities include:

• Research conducted in other countries;
• Activities that are not rooted in hard sciences, and instead rely mostly on anthropology, arts or humanities;
• Activities that highlight customer preference, such as market research studies;
• Activities that simply repeat an already established business activity, without adding anything new

Additional Business Perks Though the State of Washington

While Washington state does not currently have an active state Research and Development tax credit, it does have an active Business and Occupation (B&O) credit for new employees in manufacturing and research & development in rural counties. This tax incentive can quickly add up for Washington state employers. The B&O state tax perk is open to manufacturers, R&D laboratories, and commercial testing facilities located in rural counties or within a CEZ. It credits the following:

• $2,000 credit/position with annual wages/benefits of $40,000 or less; or
• $4,000 credit/position with wages/benefits of more than $40,000 annually.

How can National Tax Group help you?

If you are a company owner, there is no risk in reaching out to us for your FREE assessment of benefits. You’re already doing the work to further your company in a fast-paced market, and we can help take it one step further.  Call National Tax Group at 561-257-3436 to start your free assessment.

When companies are rewarded for research spending through tax incentives, businesses can expand and grow.

Many companies across a variety of industries perform R&D activities – some without even knowing it. This specialty tax benefit is available on the federal level, as well as on the state level. As of 2006, 32 states now offer their own R&D tax credits. Now more than ever, innovation is a key component of the American business landscape. Research and Development tax credits have become a key strategy for minimizing tax liability and ensuring there are funds for small, medium and large companies to reinvest in future research practices.

According to a recently published a study on the effect of R&D tax credits on businesses from MIT, the R&D tax credit fuels high-quality growth, especially in new and smaller businesses on the state level. MIT economist Scott Stern states, “The R&D tax credit is one of the few innovation policy instruments that at relatively low administrative cost, can make a big difference for spurring innovation and entrepreneurship within a region.”

A Cost Segregation Study is a look back in its own right. Performed by a specialty tax engineer, a property and its building elements are surveyed closely to adjust their depreciation timelines as needed. This process can be greatly beneficial to the property owner, as it has the potential to unlock otherwise unused capital. After a study is performed, building owners can see a substantial increase in their building’s cash flow through these significant tax savings.

Both new and established properties can benefit from CSS. In fact, properties that were in service as far back as January 1, 1987 are qualified. Furthermore, property owners can request a tax amendment past the three-year look back statute, and changes can be made without filing an amended return.

R&D Benefits Companies Now and in the Future

Prioritizing new concepts and processes in the workplace creates an environment that encourages change, flexibility, and adaptation. Innovation draws talent, and an inventive environment can increase the number of company employees with high skill levels. A first-rate staff, along with continuous research, can allow a company to achieve
long-term sustainability and sustainable growth over time. Furthermore, companies can use their R&D tax credits to reinvest in more high-quality specialists, continuing the cycle of innovation.

Research and Development tax credits can also be reinvested into more new products, processes, and services. Better technology and product development benefits not only companies, but also their consumers. When businesses qualify for R&D credits, they can then turn around and reinvest into intellectual property conception, prototype production, formula creation, hiring qualified specialists and more. These tax benefits are especially beneficial to ambitious start-up companies and small businesses.

Businesses Looking Ahead Should Consider Specialty Tax Credits

At the end of the day, receiving Research and Development tax credits will allow business owners to more easily attain the innovative activities and high caliber employees needed to continue to be at the forefront of their respective industries. Contact National Tax Group Research and Development tax credits to start the process of obtaining your lucrative tax incentives. Contact us at 561-257-3436 for your free assessment today.

Corporate tax amendments are a valuable way for business owners to tap into unexpected cash flow.

What if you could go back in time and file for missed money opportunities in previous tax years? The term “look back window” is unfamiliar to many business owners, but those acquainted with the practice can leverage it to their advantage.

Tax amendments allow business owners to adjust their taxes now for federal and/or state returns from the past. Some specialty areas of the corporate tax code have the potential to not only benefit the taxpayer during tax season, but anytime during the year with a submission.

Cost Segregation: A Specialty Look Back Study

A Cost Segregation Study is a look back in its own right. Performed by a specialty tax engineer, a property and its building elements are surveyed closely to adjust their depreciation timelines as needed. This process can be greatly beneficial to the property owner, as it has potential to unlock otherwise unused capital. After a study is performed, building owners can see a substantial increase in their building’s cash flow through these significant tax savings.

Both new and established properties can benefit from CSS. In fact, properties that were in service as far back as January 1, 1987 are qualified. Furthermore, property owners can request a tax amendment past the three-year look back statute, and changes can be made without filing an amended return.

Research & Development Tax Credit: Rewarding Innovation

You can still pursue your lucrative 2019 R&D tax credit, even though it’s past the extended July 15th due date. If your business has been investing in the development of new products or processes, you may be entitled to the R&D tax credit on the federal and any available state levels.

The first step would be to verify that your research activities meet the IRS’s 4-part test. Additionally, a tax team can assist you in maximizing any unclaimed tax credits that can increase your business’s bottom line.

45L Tax Credit: Saving Energy Offsets Tax Liability

Builders, contractors and commercial owners who have implemented significant energy savings in their past projects can receive a one time credit of $2,000 per dwelling. The profit from the sale of a project is included in the tax provision.

Taxpayers can look back three tax years to claim credits from projects that are already in use. Furthermore, a 20-year carry forward means some of the taxpayers can use this benefit to reduce or even eliminate their tax liability for two decades going forward.

179D: Tax Deductions for Commercial Building Energy Savings

Congress extended this tax provision for commercial owners in December of 2019. Builders and property owners can take advantage of the deduction through the end of this year. Qualifying dwellings offer taxpayers up to $1.80/sq. ft. deduction if fully qualified, and a $1.20 or $0.60/sq. ft. deduction for partial qualifications. Congress also announced last year that the 179D benefit retroactively includes projects completed in 2018 and 2019.

If designers or builders worked on a government project such as a Federal, State, or local government office or property, there are additional perks. In these cases, taxpayers are entitled to a look-back up to three years.

Don’t Leave Money on the Table

With the end of the tax season comes additional opportunities. Start your free assessment of tax amendments and benefits today by contacting National Tax Group at 561-257-3436.