COST SEGREGATION: Our Cost Segregation service is one of four flagship services making up our Specialized Tax Incentives.
Cost Segregation is an engineering based study that permits commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods.
The Commercial Property benefit is a Federal program designed for business owners who own commercial properties, or have performed significant lease hold improvements. This program traces it’s roots as far back as the Tax Reform of 1986, but went through significant changes in 2004 making it more accessible for small and midsize property owners to take advantage of. The most recent changes appeared as late as February 2009 in the American Recovery and Reinvestment Act. This is an engineered based program that focuses on the components of the building. 90% of all commercial properties qualify for this program. Commercial Property Benefit provides an opportunity to significantly reduce federal taxes and improve case flow.
PROPERTY TAX MITIGATION: Outside of income taxes, the single largest recurring charge for commercial property owners are Property Taxes. In most states, owners are required to pay taxes on both their real estate as well as their personal property. These charges are often an immense expense and a constant hit to their bottom line. To be ensured clients are not being overcharged on Property Taxes, we use an industry specialist with extensive market experience in valuation, tax and law to perform their Property Tax Mitigation.
Most companies consider property taxes to be a fixed cost. However, a review of real and personal property tax assessments often results in the identification of opportunities for lower property tax bills. A property tax review can result in savings up to 10-25% or more of the total real and personal property taxes paid. Savings identified in the current year are typically realized in future years as well.
Most companies consider property taxes to be a fixed cost. However, a review of real and personal property tax assessments often results in the identification of opportunities for lower property tax bills. A property tax review can result in savings up to 10-25% or more of the total real and personal property taxes paid. Savings identified in the current year are typically realized in future years as well.
R & D TAX CREDIT: Also known as Manufacturing Tax Incentive. We utilize a team of highly qualified professionals including IP attorneys with engineering backgrounds and adhere to the Comprehensive Project by Project Approach methodology as required by the IRS. By following this methodology, we qualify every applicable employee, activity, hour spent and corresponding wage paid in order to maximize the incentive for our client. We strictly adhere to the applicable sections of the code and provide first-in-class documentation to substantiate our findings.
The Manufacturing Incentives benefit is a Federal program designed for companies that perform manufacturing in the U.S. This program is listed under Section 41 of the IRC (Internal Revenue Code) and continues to be amended on an annual basis as the U.S. manufacturing landscape continues to evolve. This is an engineered based program that focuses on a company’s operations and processes in order to determine their qualification for incentives. The Manufacturing Incentives benefit provides an avenue to receive ‘tax money’ back from prior years while also reducing current taxable income on a dollar-for-dollar basis.
HIRING TAX INCENTIVE (WOTC): WOTC stands for "Work Opportunity Tax Credit" and is not one but several tax credits given to employers at a Federal level for hiring qualified employees. Annually employers claim over $1 Billion in tax credits under this program. There is no minimum number of hired employees required for an employer to qualify for this tax credit. Historically, this program has been used on a limited basis because of cumbersome paperwork and filing deadlines. However our proprietary software makes filing for these credits relatively easy. It is all done electronically as we have eliminated the dreaded paperwork and filing hassles that keeps most companies from utilizing this tax credit.
The average WOTC tax credit for a qualified hire is $2,400 and can be as much as $9,600 for certain classes of employees.
The average WOTC tax credit for a qualified hire is $2,400 and can be as much as $9,600 for certain classes of employees.
Employee Retention Credit (ERC): As part of the CARES Act passed by Congress, the Employee Retention Credit allows companies that are still paying their employees after March 12, 2020 to obtain a tax credit up to $26,000/ full-time W-2 employee. (Our ERC service averages $21,000/Employee)
Disaster Relief Employee Tax Credits: In the years 2018 and 2019, a total of 19 states had disaster declarations affecting certain counties in each of these states. Companies in the affected areas can claim up to $2,400/employee that received wages during 2018-2019 (even if they are no longer on your payroll).
Various State & Local Tax Credits: There are also a variety of state and local tax credits available including technical job tax credits, business start-up tax credits, small business tax credits and Enterprise Zone tax credits.
Disclaimer: Touchpoint Business Edge LLC does not offer or provide legal or tax advice. We work with our business clients on certain specialized tax incentive programs that have been available to most businesses for several years and do the work in conjunction with our clients' CPAs and/or Tax Attorneys. The Deferred Sales Trust is properly set-up by outside CPAs and Attorneys with many years experience with this tax program.