Non-Profits vs Deductions

If you are a non-profit with many credit card transactions, you should know that many non-profits may be on special pricing tiers due to their non profit status. 

This means that you have the potential to have your Credit Card rates on special pricing, your Waste & Recycling may be on special layout, etc. 

We can only determine this via Discovery Call 

www.BusinessRefundEstimate.com

And if you own commercial property, you can see your saving in seconds: See your savings in seconds at  www.PropertyTaxBenefits.com

We are looking for elite, MOTIVATED commercial real estate, insurance, finance, tax, legal and business consulting professionals! (US based only)

Are you earning what you are worth?? Learn how one of our advisors earned a MULTIPLE SIX-FIGURE COMMISSION on a single deal! Due to our dynamic growth, we are growing a specialized team focused on commercial real estate and business owners. This can be done on a full or part-time basis, so you can do it in addition to your current professional opportunities. Here are the details: • FREE training – We provide all the training you need to approach and work with commercial real estate owners and grow your business. • Work with clients in-person OR remotely over your computer • No license required • Most interested in professionals within 1 hour of US MAJOR METROS! • State of the art technology - Access to our proprietary App on your smartphone, tablet or laptop • Opportunity to build your OWN million dollar agency! If you are interested in discussing the opportunity, please e-mail me directly at

Lgpotter33@gmail.com

“Profit Center”

It's a buzzword being tossed around like a football across corporate America. It sure sounds good, doesn’t it? Of course it does, who doesn’t like profits? Unfortunately saying the words “Profit Center” and actually having one are two different ball games.

To put it simply, a Profit Center is defined as, “The branch or division of a company that creates profits individually and separately from the main organization.”

There are essentially two methods of creating a profit center for your organization. First, you can offer a new service that creates a profitable revenue stream. Second, a cost center can turn into a profit center by selling those administrative “cost of doing business” services to other firms. As Management Professor William E. Halal so eloquently stated to USA Today Magazine, “When a business firm becomes a corporate community of entrepreneurs who buy, sell and launch new products and services internally as well as externally, it gains the same creative interplay that makes market economies so advantageous.”

For the purpose of this article we will focus on creating a new profit center rather than converting a cost center into a profit center. The easiest way to create a new profit center is to add service offerings that align with an existing client base.

For example, CPAs, A/E/C firms, and even most Contractors have an existing base of business clients and referral partners who own commercial property. Are they maximizing on the plethora of accumulated property data, let alone the hard-earned relationships they’ve developed? These are not cold leads or warm contacts but EXISTING CLIENTS who have already paid money for their services. Failing to monetize an existing client base with value-added services is just bad business.

So, how do I create a new service offering and market it to my existing client base? The easiest way to accomplish this is to partner with an organization that already has a profitable service on the market that would be a benefit to your clients. Once a partnership is established, the next step is to effectively spread the word to your existing client base. Communicate how your new opportunities will benefit them and move them through the sales cycle. If you have done it right, your existing clients will thank you for your high level of client service. This truly becomes a “win-win-win” proposition!

Growth Management Group, LLC (GMG) provides custom services to business owners across the nation to increase sales, reduce cost, and procure specialized tax incentives. GMG also offers strategic partnership to firms looking to utilize their existing client relationships to generate new revenue streams.

For additional information tap here now.

I have a question about using this GMG savings tool. www.BusinessRefundEstimate.com

"I have clients purchasing commercial properties (Hotels and Assisted Living facilities) ---would I be able to use this tool to calculate the TAX savings?

Looking for another creative way to benefit new buyer but at the same time negotiating price and terms with sellers.

Please advise ASAP. Thanks."

Answer from GMG: " Cost segregation is for the purchase or renovations of the building. It is possible for the seller and purchaser of a building to both take advantage of cost segregation during the sale of a building. However, it would need to be reviewed on a discovery call to go over the details to determine for sure. If income is generated Cost Segregation may be a good benefit to offset part of that income."

Their next question was: Does this work for single family homes that buyer will be buying to use as Assisted Living Facility (6 adults in 1 house)

Answer: If income is generated Cost Segregation may be a good benefit to offset part of that income.

Final question: What is the best tool my commercial property owners can use before April 15th who are worried about taxes this year and find out how to offset or eliminate their tax liability now? 

Answer: This free handy tool will do that in 30 seconds for them.

The Simplest Way To Lower Your Business Taxes!

The new year is upon us and most of my clients are very concerned with tax liability. They are looking for ways to offset or lower their taxes.

As mentioned previously, a cost segregation study can do just that for qualifying clients and it seems that you would qualify, especially this year because bonus depreciation has been doubled!

All we need to do to confirm your benefit is for you to answer 2 simple questions.

Larry G. Potter

Increase Your Business Profits In Seconds

The new year is upon us and most of my clients are very concerned with tax liability. They are looking for ways to offset or lower their taxes.

A cost segregation study can do just that for qualifying clients and it seems that you would qualify.
Especially this year because bonus depreciation has been doubled!

All we need to do to confirm your benefit is have you visit us at  www.BusinessRefundEstimate.com  and you will see your benefits in seconds.

Do you have a 'Tax Preparer' or a CPA?

Depending on your answer, you could be getting bad advice which puts more money in the IRS’s coffers (and leaves less in your pocket).

Below is the crux of a typical tax preparer’s opinion regarding Engineering Based Cost Segregation Studies which an experienced CPA would say has kept many commercial property owners from implementing this highly beneficial tax strategy which is effectively encouraged by the IRS.

Here is a typical ‘tax preparer’ statement to commercial property owners:
“You are not getting additional depreciation, you are accelerating depreciation by allocating cost to shorter life. I advise against such a strategy as there can be future tax implications and also there is upfront cost involved.”

For frame of reference, here is the IRS’ view (from www.irs.gov) on cost segregation:
“Buildings and structural components have substantially longer depreciable lives than personal property. Therefore, it is desirable for taxpayers to maximize personal property costs in order to accelerate depreciation deductions and, hence, reduce tax liability.” (source)

Here’s how many experienced CPAs would look at this matter:

The above point of view isn’t considering the bigger picture. For instance, only looking at the (potentially) negative capital gains tax implications associated with cost segregation by itself is ‘missing the forest for the trees’:

• It is not necessarily true this would be a ‘negative’ as it would depend on the ultimate sale price versus the depreciable cost basis; if the sale price is equal to or less than the depreciable cost basis then the capital gains issue is, well, a non-issue.
• There is no consideration given to the positive effect on the income tax picture due to cost segregation; this positive effect needs to be weighed against the potentially negative capital gains effect.
• In general, property owners will benefit from cost segregation if they hold the building for at least 18 months. One reason for this dynamic is that the capital gains tax, even at the 25% ‘re-cap’ rate, is much lower than the typical 35% to 39.6% income tax rate.
• There is an assumption that the property owner is absolutely giving up all future depreciation benefits in exchange for taking those benefits now. Well, if the owner never replaces carpeting, wiring, plumbing and other such non-structural components, then, ‘yes’, that would be the case. But the reality is that these components will ultimately be replaced (which is the basis for the relatively shorter/accelerated tax-compliant depreciation time-lines for such items). The associated replacement costs can be depreciated.

So, in fact, the depreciation isn’t lost in reality. Plus, only about 20% of the building can be ‘accelerated’…the remainder stays in 39-year S/L.

• In effect, this is a time-value-of-money/opportunity cost ‘play’. So an owner’s capitalization rate needs to be considered; a critical mass of money in the hands of a good businessperson NOW could feasibly produce a 10% or greater return. An owner’s ability to convert that ‘now cash’ (i.e., cash that becomes available due to cost segregation’s resulting reduction in current income tax) into more cash could easily dwarf the down-the-road bit-by-bit depreciation cost deductions which the owner MAY be passing on.
• The “upfront costs” for conducting an Engineering Based Cost Segregation Study are barely worthy of factoring into the benefits equation; first, the Study is a business expense and effectively comes at a 35% (+/-) ‘discount’, and secondly, the Study cost can often be less than 10% of the tax benefit (even without the ‘discount’). Most business-minded people would find a project with a minimum 10:1 benefit-to-cost ratio to be worthy of pursuit.

So, do you have a ‘Tax Preparer’ or a CPA? The best way to find out is to ask him or her how they perceive the value of an Engineering Based Cost Segregation Study for a commercial property owner and have them (or you) see your estimated savings in seconds at  www.BusinessRefundEstimate.com