Multifamily Properties and Engineered Based Cost Segregation

 

Cost segregation is a tax benefit that is not well known. Cost segregation is a strategy used by property owners to maximize the amount of depreciation taken each year.

This kind of depreciation expense is one of the major tax benefits of multifamily ownership because it helps to reduce the property’s tax liability without impacting the cash available for distribution. Commercial property owners, such as a multifamily property, have a strong incentive to take as much depreciation as they can each year. One of the ways this can be done is through a cost seg study (with no upfront fees).

Without cost segregation, tax rules allow multifamily assets to be depreciated over 27.5 years using a straight-line schedule. Cost segregation involves reviewing every aspect of a property and segregating its components into different buckets for which depreciation can be accelerated. 

By dividing a property into its components and depreciating them over a shorter time period, depreciation expense is maximized, and the resulting tax liability can be significantly reduced. Over a 10-year investment holding period, the tax savings from using cost segregation can be significant.

Depreciation is a noncash expense, meaning that it does not represent money that the property owner paid to another party. It is an accounting concept that does not impact the property’s cash available for distribution.

The benefits include:

*Increased Cash Flow

*Minimizes Taxes

*Catch Up Benefit (no amending returns)

*Free Up Money For Investments

Now you can see your benefits in seconds.

If you have a business, it's time!!!

 

It is time to focus on year-end tax planning to minimize taxes for 2020 and get ready for 2021. 

Numerous tax law changes from recent legislation, including the SECURE Act and the CARES Act, may influence last-minute actions for business owners. 

There are many tax planning opportunities that can be implemented now that will make a favorable impact on income tax returns for this year.

See your specialized tax incentives now and then show this to your CPA while there is still time.

Dentists have adjusted their practices during a pandemic...

While many businesses have been hit hard by the coronavirus pandemic, dentists have faced some of the biggest challenges because numerous procedures routinely use instruments that can create droplets and aerosols, posing potential risks of transmission.

Many were closed for months and were seeing emergency cases only. They were seeing patients who were in pain; no treatment was being done to not have aerosols. It was whatever could be done without a handpiece or ultrasonic devices. There were no fillings, no treatment per se, or crowns — only for symptom relief. 

Patients, of course, were anxious about safety, so it has taken a lot of training of staff and then also reassuring patients of all the steps that were taken so that they feel safe to come in. Pre-COVID versus post-COVID, most practices have lost 20 to 30% business.

Now there is emergency business relief for the dental industry and it is not a loan. More info here.

Not the best way to start Thanksgiving Week!

Restaurants across the Unites States are again bearing the brunt of some of the tightest restrictions as COVID-19 cases keep rising.

Much of Illinois, Michigan, California, Washington and other states have banned indoor dining and New York City's mayor said it's "just a matter of time" before the same happens in New York. Yet, some restaurant workers say that they are "relieved," about the measures, especially following a recent CDC report that found that those who had tested positive for the virus were twice as likely to have reported dining in a restaurant.

As for relief for restaurant owners, it's right there at their door steps via BusinessRefund with no upfront fees

3 Ways A Small Business Can Win the Holidays This Year

 

Note: Under the PATH Act a "Small Business" is:

A corporation the stock of which is NOT publicly traded

A partnership, or

A sole proprietorship, AND if the average annual gross receipts of such corporation, partnership or sole proprietorship for the 3-taxable-year period preceding the taxable year does not exceed $50M

*Drive Urgency by Focusing on a Couple of Key Shopping Days

One great way to make sure your customers take advantage of your holiday offerings is to make them time sensitive. Then surprise your audience by extending your sale last-minute and give yourself another opportunity to mention your offerings. 

*Double Down on Your Small Business Story

Your business has something the superstores don’t: a regional story that has the potential to capture hearts.

*Refresh Your Social Creative

Consider updating your cover photos on social media to reflect the holidays or a new merchandise you’re hoping to move.

Regardless of the size of your business, take advantage of the specialized savings available for you company now. 

Daycare and preschool providers deal with more stress and they, and in-home providers, are a critical workforce link.

These providers have always been a critical workforce link. If the daycare provider isn't able to take care of the kids, parents can't go to work. Now as the pandemic enters a dark new phase and essential workers, such as doctors and nurses, try to cope with a surge of sick patients, daycare has become vital.

Added to their other duties, providers must be ever-vigilant against a rapidly spreading virus. A single infection in a facility has the potential to trigger a domino effect, impacting parents, their ability to work, and other businesses.

The daycare industry was struggling even before the pandemic struck. A shortage of providers was exacerbated as some closed their doors in the wake of the pandemic.

Some states have seen a rate of closure as high as 50 percent. Unfortunately, many did not realize there was immediate help with just a couple of clicks.

 Immediate help for providers.

Your business could save on the average of $240,000. Here's how...

 

In 60 Seconds you can check your eligibility for:

• COVID Employee Retention Credit

• Disaster Retention Credit

• Workers Opportunity Tax Credit

• R&D Employer Tax Credit

• Cost Segregation

• Property Tax

Where?  Business Refund

Then take the results to your CPA, we don't do taxes.