U.S. Tax, International Tax, and Health Care Consulting and Compliance Experts
Domestic Production Activity Deduction Recent legislative changes, arising out of the American Jobs Creation Act of 2004 enhanced the tax benefits available to U.S. Producers and Manufacturers. Businesses may be able to deduct up to 3% of qualified production activity income for certain business activities. Since this deduction can be determined at a very detailed level, utilizing the principles of 861-8, the tax benefits can be significantly higher then if a high level analysis is performed. We can help you understand these principles and assist in maximizing the tax savings. Please contact us to schedule a free consultation.
Depreciation Cost Segregation The U.S. Government recognizes the value of investing in business growth through acquiring new assets. Depreciation tax deductions are the primary means for encouraging reinvestment in business. However, not all assets are treated the same. Many assets have vastly different useful lives. Often times taxpayers group dissimilar assets together and as a result the annual reoccurring depreciation expense deduction may be understated. This often happens when taxpayers purchase buildings and capitalize the expense over 39 years. Many components of that building may be eligible for much shorter useful lives and therefore depreciation expense would be accelerated by segregating these costs into their proper useful lives. We understand the rules and the process the IRS follows to review these expenses and offer a free consultation to assist you in determining if a cost segregation review may be beneficial for your organization. The review could have long-term reoccurring favorable effects to your U.S. effective tax rate.Please contact us to schedule a free consultation.
Research and Development Tax Credit The U.S. Government encourages taxpayers to invest in research and technology to help maintain global markets and strong economic growth. As a result taxpayers may be eligible for up to a 20% tax credit on qualifying R&D expenditures, provided certain criteria are met. Through our expertise and business alliances we can provide you with valuable insight to assist you in obtaining and maximizing your R&D credit if your company has qualifying R&D expenditures. Please contact us to schedule a free consultation.