Cost Segregation – Tax Deductions

Cost Segregation – Tax Deductions – The Primary Goal of Cost Segregation
By understanding business tax deductions, business owners may enjoy personal benefits from business expenditures – a nice car to drive, a combination business trip/vacation, retirement savings plan – if they follow the myriad tax rules.The tax code allows deductions from gross income, which reduce income taxes. Increasing tax deductions reduces taxable income and income taxes. Therefore, knowing how to maximize your deductible business expenses enables you to lower taxes.According to the IRS, trade or business expenses must be ordinary and necessary to be considered a tax deduction. Although the tax code does not specifically define “ordinary” and “necessary” tax deductions, these types of expenses are specified in various IRS publications and regulations. Some of the tax deductions business owners can claim fall under categories such as charitable contributions/donation deductions, medical and dental deductions, moving expense deductions, deducting job costs, travel and entertainment expense deductions, casualty and theft losses, depreciation and involuntary conversion deductions.The wisdom of tax planning is to take advantage of all the benefits Uncle Sam has to offer.

An increasingly popular federal tax savings phenomenon is utilizing a cost segregation study (CSS). These studies offer business owners of improved commercial real estate the opportunity to defer taxes, reduce their overall current tax burden, and free up capital by improving cash flow. A CSS study will identify any item that can be depreciated over a shorter period of time. These studies can result in accelerated depreciation deductions for properties including new buildings being constructed, renovations of existing buildings, leasehold improvements, and the purchase of real estate.The primary goal of cost segregation is to identify building components that can be reclassified from real property to personal property. This results in a substantially shorter depreciable tax life and accelerated depreciation methods. Ordinarily, the cost of real, or section 1250, property is recovered over lengthy periods (27.5 and 39 years for residential and nonresidential property, respectively), using the straight-line method of depreciation.

Personal, or section 1245, property is recovered over considerably shorter periods (5, 7 or 15 years), and employs accelerated methods of depreciation, such as 200% or 150% declining balance.Tax reduction services include federal income taxes, state income taxes and property taxes. We do not prepare income tax returns. Instead, our advisors review your circumstances and suggest cost effective options to lawfully reduce your income tax liability.

Escape The Burden Of Taxes With Colorado Interest Mortgage Rate Refinance


Let?s face it. Even if they are for a good cause, taxes are a pain. It doesn?t help when you know it?s not being used the way it should be because of the shameless pilfering of corrupt politicians. Unfortunately, there are only two things certain in life and these are death and taxes, so there?s really no way to get away from them.

Less Is More

Instead of moving to the jungle where the Internal Revenue Service or IRS can?t find you and force you to pay taxes, why not think about relocating to a state where taxes are minimal and not so painful like Colorado? In Colorado, you don?t only get to breathe fresh mountain air all the time, which is already a perk in itself, but income tax is a flat 4.63% and is calculated based on taxable income, basically the income left over from federal exemptions and standard deductions. That is so much better than having your taxes computed from your gross income.

Yes, Colorado is indeed ideal. You get to pay less in taxes and save more of your hard earned money for yourself and your family. With a Colorado interest mortgage rate refinance, you?ll be well on your way to making bigger savings in the famous Centennial State.

Lower Is Definitely Higher

Of course, real estate and personal business properties are taxable in Colorado. But isn?t it taxable everywhere else? The important thing is the fact that the state of Colorado collects considerably less than a third of the nation?s 50 states. You can be sure that your Colorado interest mortgage rate refinance is reasonable and therefore, easy on the finances.

At this point, you?re probably a tad bit disappointed. After all, why can?t you just have your Colorado interest mortgage rate refinance as it is without the added burden of state taxes? Well, as inviting as it may be, you can?t fight the institution and you certainly can?t fight the government. There are simply some things that can?t be helped, one of them the taxes imposed on the property you are buying with a Colorado interest mortgage rate refinance. Look on the bright side. It won?t go away altogether, but it is a lower tax rate than anywhere else, giving you higher savings than when you purchase property in, say, Vermont.

The Price Of Living

Like any financially sound person, you are of course thinking about the cost of living. That is naturally dependent on your lifestyle. Retail sales tax in Colorado amount to only 2.9%. Add that to your daily expenses and to your Colorado interest mortgage rate refinance payments and you get the picture. The math is actually fairly straightforward. Also, if you lived in the state for a full year, you are eligible for sales tax refunds and individual state income tax returns. Employment is not a problem. Colorado plays host to thousands of industries and Denver, the state?s capital, is the home of Wall Street in the West.

Indeed, Colorado is not only economically and financially ideal; it also provides perfect living conditions. After all, who can put a price tag on beautiful mountains and fresh air? In Colorado, you get those, and more, for free.

Aspects of Corporate Taxation in India


Corporate taxes are annual taxes chargeable on the income of a corporate body operating in India. Company, whether Indian or foreign, public or private is liable for taxation. All companies formed and registered in India are considered as domestic companies, whereas, a foreign company is a company whose control and management is situated completely outside India. In case of domestic company, tax is levied on all the global earnings, which include income from all sources, amount of dividend declared, distributed or paid, etc., however foreign companies do not need to make the prescribed arrangements for declaration and payment of dividends within India.Rate of TaxDomestic companies are subject to corporate tax in India. They are charged at the rate of 30 per cent of their total earnings, while international business organisations working in India are normally liable at the tax rate of 40 per cent. Tax rate for foreign companies is 50 per cent for any royalty income received from the Government or any fees received for rendering technical services under an agreement approved by the Central Government.SurchargeCompanies with a turnover of Rs. 1 crore or more are subject to a surcharge levied on the total taxes paid by them. The domestic companies and foreign companies are chargeable at the rate of 5 per cent and 2 per cent respectively.Educational cessAn additional educational cess is levied at the rate of 3 per cent on the amount of tax, inclusive of surcharge, in all cases. It includes “Education Cess on Income Tax” and “Secondary and Higher Education Cess on Income Tax” at the rate of 2 per cent and 1 per cent respectively.Various deductions and rebates allowed in Corporate TaxationThese tax laws, rules, and rates vary from country to country. Indian income tax laws have various rules and regulations, and are amended from time to time. Hence, understanding these laws has become more complex, and one might eventually end up paying more taxes.There are various corporate law firms in India, which provide optimal tax solutions to their clients in a cost-effective manner on the basis of experience gained by them in dealing with a multitude of clients. These law firms provide legal assistance in many cases related to taxation like filing of income tax returns, foreign tax advice, and various provisions related to capital gains, TDS, etc. They are committed to provide innovative legal solutions to its domestic as well as international clients.

Tax Lien Certificates And Subsequent Tax Procedures


Tax lien auctions have gotten more and more competitive in recent years. Some factors that have led to this trend include: more awareness among small investors because of new courses on the market, more Wall Street money entering the market and the new trend of internet tax sales.

If you have been to the tax lien sale lately you may have noticed something interesting. The big dog investors are bidding the properties down to next to nothing. In Florida, it’s very common to see properties bid down to one quarter of one percent. Has your banker gone insane? Or do they know something that you don’t?

It’s probably a little of both, or they are probably playing the sub tax game. What’s the sub tax game? It’s very simple, really. In many states, the regulations allow tax lien investors to pay the taxes for the following years, also called subsequent taxes. In other states, the investor is actually even required to pay the sub taxes. Even more interesting, many states also have minimum penalty statues on the books that make investing there very attractive.

For example, in Florida, it is very common for the tax liens to be bid down all the way to one quarter of one percent. However, Florida also has a 5% penalty clause and an 18% normal interest rate. So, in Florida, the investor will often buy the lien at the quarter percent bid. If the lien redeems in three months, then he has made a 20% return. Worst case, the lien does not get paid for the whole year and the investor still makes 5%, which is a lot better than bank cd’s.

Then, the investor has the sub tax rule to make up the difference. He simply pays the following year’s taxes and is at the full 18% for the sub lien without any competition. Not only that, he is secured by high quality real estate. The two liens together will average well over 10%. So, the investor either gets a nice high rate of return, or he gets a nice Florida house.

Of course, that’s assuming that a hurricane doesn’t blow the house down. Heck, he is even covered there, because the tax lien investor gets first dibs on the insurance money, ahead of the homeowner and even the mortgage company. What a deal!

So, as you can see, subsequent taxes are an area of tax lien investing where you need to know the rules and learn to play the game. If you do it properly, then you can make some huge profits!

Home Business Tax Deductions


Dreading April?

If you are running a home business, it is important to remember that there are tax deductions for you when tax season rolls around. Of course, you do not want to try to fool the IRS (no one wants to run the risk of being audited!), but you do want to take advantage of those deductions that are rightfully yours. Running your own home business takes much of the same expenses, effort, time, space, equipment, and travel as any other business. Below are some home business tax deductions to remember as April is drawing near.

If you have a home office that is dedicated solely to your home business, you can add it to your list of home business deductions. The same goes for telephone charges, office supplies, furniture, software, subscriptions, and other equipment. Do not fear an audit for making these home business tax deductions as long as these items are used exclusively for your home business.

If your business requires you to leave your home office, you can add the cost of travel, mileage, meals, entertainment, and anything else that goes along with the cost of living on the road to your home business tax deductions. During the year, make sure you keep documentation of your mileage, your trips, food, etc.

Now, what about the really big stuff? Well, when making home business tax deductions, you can also take into consideration insurance premiums (if you are self-employed and pay for your own insurance), the money you deduct for retirement, and half of what you pay towards your social security. And if your children are seventeen or younger and are working for you, you can deduct their salaries as business expenses.

This is just a quick scan of the home business tax deductions you can take advantage of. For more information, check out , and talk to a tax professional.