5 Forward-Thinking Tips for Fast-Moving Companies in Cincinnati, Northern Kentucky and Beyond
1) Is It Time to Buy?
For a short time, there are some very powerful incentives in place for businesses that make capital purchases. If you are considering adding a production line, replacing old machinery, or improving your property, 2011 would be a great time to do it. Two late 2010 tax acts provided major tax relief for companies making qualified purchases in 2011. Increases to Section 179 limits and temporary bonus depreciation allow companies to expense significant purchases in 2011--greatly reducing tax liability.
2) General Business Credits are Back
Well, they never really went away. They just lost their effectiveness for a few years. But recent changes to the way these credits can be applied have revitalized these incentives. many different credits are available. Taking advantage of the right ones can lead to big savings. R&D Credits, work opportunity credits, and low-income housing credits are just a few of the many credits available. Recent changes removed significant hurdles to utilization, so credits that didn’t bring value in the past could yield huge rewards going forward.
3) R&D Credits Reward Risk and Innovation
Many taxpayers overlook this valuable credit. The federal R&D tax credit rewards companies and their shareholders for improving their products and processes. Manufacturers, processors, and software developers all frequently benefit from this credit. And don’t forget, a credit is a dollar for dollar reduction in tax liability. Getting qualified now could pay big dividends next April.
4) Going Green Might Pay in 2011
Grants, credits, and renewable energy certificates might make alternative energy projects viable solutions for many companies in 2011. While wind energy projects often need to be quite large, solar opportunities are far more scalable. With the right combination of incentives, your facility could be off the grid and saving you money by this time next year.
5) Could Your Building Reduce Your Tax Bill?
Cost segregation studies can accelerate depreciation deductions and result in substantial cash flow benefits. If you’ve acquired real estate property or made substantial improvements to existing property in the last seven years, a catch-up depreciation adjustment from a cost segregation study could provide immediate tax relief.
To find out how any of these tips apply directly to YOUR bottom-line, contact VonLehman, CPA and Advisory firm in Cincinnati or Northern Kentucky today. And, to stay up-to-date on crucial tax information and business insights, be certain to register your email address today. You will receive additional tips, timely tax news, invitations to VonLehman Seminars and key business trend and strategy updates.
Contact VonLehman today to get our perspective on your business, for now and going forward.
Disclaimer: The technical information on this page is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.