Step Into Our Tax Time Machine – Amend Your Return to Claim Overlooked Deductions

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.

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