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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.

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