It is a sure fact that for all of you who run a business, the greatest aim is to shoot up your profit and bring down the amount that flows out of your business. While you keep figuring out new and innovative ways to keep up your profit levels, one of the things you cannot really avoid is the taxes. This is mandatory compliance that is enforced by government and IRS, and hence there is no way we can cut corners on taxes. What we can do instead is to maintain as low a tax number as possible without going into the grey area of non-conformance with norms and laws.
Unlike the other things which are mostly one time investments, taxes have to be paid year after year without a break so long as your business goes on. In fact each year a great deal of money from every business is sucking up in paying the taxes. Depending upon the size of your business it may even run up to several thousand dollars. It will be a prudent exercise to save taxes and bring down tax liability to the minimum so that your bottom lines swell on the balance sheet.
Can you save your taxes?
The question that arises now is whether there are ways in which you can save on your taxes? Well, the answer is absolutely yes! While most of you may opine that there is no point in wrecking your head over taxes as they are unavoidable, there are actually ways in which you can save your money and considerably bring down your taxes!
Unbelievable is it? Well, it may not seem so after you been through all the know how’s on saving tax.
Who are eligible to save taxes?
Almost every form of business that is liable to pay taxes at regular intervals is eligible to save on their taxes through the right methods. Yet for your ease, here is a list of the most common forms of business that may make use of it:
- Manufacturing facilities
- Retail outlets
- Dental clinics
- Surgical clinics
- Nursing homes
- Apartment complexes
- Automobile dealerships
- Office buildings
- Medical centers
Are you eligible for tax saving?
Even if your business falls under any of the above categories, it may be difficult for some of you to understand if you are eligible to save taxes. By answering these set of questionnaires set by experts, you will surely able to get through to the fact if you are eligible to save taxes.
Simply check if your business applies to one of the conditions below:
- Have you recently acquired a new building?
- Have you been remodeling your existing building in recent times?
- Are you planning to build or have you recently built a new facility for your business?
If you fall under any of the conditions set by these questionnaires then you are eligible to save taxes. Yes, you read it right. Interested to see how you can save taxes upon fulfilling the above conditions? Then read further below
How do you save on taxes?
You may save taxes by following a simple method known as cost segregation. Many businesses, however, cite the complicated terminology behind not wanting to use this technique to save taxes. The best part is that there are competent cost segregation experts that can help you save tax burden and improve your financial position. Thus, it would be advised to go with a tax advisory firm in order to know how this technique can help you bring down your corporate tax outlay and make your bottom-lines better.
How does cost segregation work?
Cost segregation, under US tax laws works by identifying personal property assets that are grouped together with real property assets and separates out all your personal assets before reporting your taxes. Newly constructed buildings, as well as business facilities all, come under cost segregation. To put it simply, this technique identifies and re-categorizes personal property assets to bring down the depreciation time for taxation purposes. This, in turn, brings down current income tax obligation and thus helps a person or corporation to save tax the smart way. However due diligence must be taken to check which elements can be added and which elements cannot be added when utilizing this technique.
Calculating it all by yourself may be difficult. For this, you may depend on reliable consultants who will give you expert advice on cost segregation. They will help you navigate the complex financial web of transactions, assets, and records. With the available data, they will be able to make the best use of the cost segregation to bring down overall taxation liability. The immense ROI they provide will far outweigh the costs incurred for availing such expert financial services from trustworthy financial advisory and taxation professionals.