Tax Consulting Services
Services Offered By Custom Biz, Inc
Cost Segregation
What is Cost Allocation/Segregation?
Cost Allocation is a lucrative opportunity for commercial property owners to recoup a big chunk of their purchase or construction cost by apply an accelerated depreciation schedule to property usually classified as “real” (Section 1250) -but under improved IRS rulings – can be reclassified as “personal property” ( Section 1245).
Ideal for commercial property owners:
- that are unable to sell their property and are just sitting on them and it may be a couple of years before they sell them.
- that could lose their property to the bank unless we can make them quickly cash flow positive.
WHO QUALIFIES:
Any commercial building that has been placed in service since 1986
and the property owner is currently paying taxes or has paid taxes in the last 5 years.
TYPES OF PROPERTIES
- Strip mall
- Retail/Restaurant Facility
- Apartment building
- Office building
- Golf Course
- Auto dealerships
- Manufacturing facilities
R and D Tax Credits
Definition of R&D and what qualifies according to IRS (Section 41 of IRC):
If a company has been involved at any stage (from conceptual to commercial production) during the design, development, improvement or testing of any of the following new or improved business components during 2005 thru 2008 tax years, then they qualify for the R&D tax Credits (Cash).
Products
Processes
Engineering,
Manufacturing, or
Automating or streamlining internal processes to improve productivity or reduce cost.
Software
Specialized Technical / Engineering Techniques
Chemical Formulas
Inventions or Patents.
Benefits to Clients:
- Significant credits/cash back from previous 3 open years,
- $1 for $1 reduction on current year’s taxable liability,
- Additional tax savings in the future,
- Unutilized credits are carried back 1 year and then carried forward up to 20 years, and
- Increase company assets and value
Companies need to have at least $2Million in annual payroll to receive substantial credit.
Tax Consulting Services Continued
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Worker's Compensation Insurance Audit
More than 3 out of 4 employers are overcharged on their Workers’ Comp insurance. We help employers to recover those overcharges and reduce their premiums going forward. This is regardless of whether your company has had a lot of claims or none at all.
There are over 42 areas that we look at when auditing your Workers’ Comp Premiums. In addition, our proprietary software is utilized to detect any possible incorrect experience rating or billing miscalculation. We have collectively 70 years of combined experience doing just Work comp audits and we have an “inside knowledge” of the system; there are constant changes in the workers’ compensation industry including rating bureau (state specific and NCCI) rules and regulation changes and policy changes.
We work on a contingency fee basis, receiving a portion of the refunds and credits that we obtain for our clients.
Work comp premiums need to be a minimum of $50,000/year.
Energy Credits – Energy Efficient Building Deduction
The Energy Policy Act of 2005 (EPAct)1 added Code §179D. This provides up to $1.80 per square foot as an immediate tax deduction for building investments that achieve specified energy cost reductions above ASHRAE 2001 building energy code standards. A one time $1.80 per square foot deduction is the maximum tax deduction, but within the $1.80 deduction amount there are three potential subsystem tax deductions: up to 60 cents per square foot for lighting and lighting controls; HVAC (Heating ventilation and air conditioning); and the building envelope.The building envelope is the perimeter of the building including roof, walls, windows, doors and floor/foundation. Under current law, EPAct tax incentives are available for projects placed in service after December 31st, 2005.
Who Benefits…
Tax Advisors
• that understand the long term energy strategy have the opportunity to provide important advise regarding tax deductions.
Building Owners
• can substantially improve the economic payback related to sophisticated energy improvement investments.
Architects & Engineers
• are encouraged to provide expert energy reduction design to government buildings and award a tax incentive.
IC-DISC – The Last Surviving Export Incentive
The Interest Charge – Domestic International Sales Corporation (IC-DISC) is the last surviving export incentive for US businesses. Unlike other export incentives that have been repealed due to economic sanctions by the World Trade Organization (WTO), the IC-DISC remains in tact and is now more attractive than ever due to currently low dividend tax rates. The IC-DISC has been in existence since 1984 and has never been challenged by the WTO.
The IC-DISC provides U.S. exporters and their shareholders permanent tax savings (20% of net export income).
Any corporation that is involved in exports of over a $1million. We set up and manage the IC-DISC corporation for the client.
TELECOMMUNICATIONS EXCISE TAX REFUND PROGRAM
What Is The Telephone Tax Refund?
The telephone tax refund is a one-time payment available (retroactively) on your 2006 federal income tax return, designed to refund previously collected federal excise taxes on long-distance or bundled services. It is available to anyone who paid such taxes on landline, wireless, or voice-over-internet service, etc. The IRS has reserved $6 Billion for these refunds. More than 50% of this reserve has still not been refunded to date.
Obtaining The Refund
We teams with the company’s accounting department to gather all the necessary information in a non-intrusive manner and prepare the appropriate claims supported by an audit ready file. If necessary, we will meet with the IRS and provide support for the claim until a final determination letter is received.
Background
In 2006, the IRS conceded liability (Notice 2006-50) with respect to the federal telecom excise tax, and directed telecommunications carriers to cease the collection of federal excise taxes related to long distance and bundled services as of July 31, 2006. The IRS also agreed to refund these excise taxes that were collected between March 1, 2003 and July 31, 2006. We enable businesses to accurately recover these overpayments, including interest. The telephone tax was originally instituted in 1898 to fund the Spanish American War. In 2006, after multiple lawsuits, the IRS conceded that it was time to put the war behind us and refund all taxes that were collected within the statute of limitations. The items that were taxed in error include:
Long Distance (at fixed per minute rates)
Inbound Toll-Free Services
Cell Phone
Blackberry Service
LANs/WANs
Pagers & Beepers
Internet
Broadband
Voicemail
Conference Calling
Data-only Services
On an average if a company spends $1,000,000/year in Telecom Expense then the approximate refund is $100,000.
We have a limited window of time as this item goes away once the 2006 tax year statute closes.
Our fees for this service are contingent on and paid when our Client receives the related benefit.
ESOP
In addition to selling a business to a third party, another strategy that can be used to create liquidity for the owners of a privately-held business is an Employee Stock Ownership Plan (ESOP). ESOPs are viable options in certain circumstances, depending on what the shareholder(s) are trying to achieve.
We help with the complete set-up and implementation of an ESOP.
These are just a few of the services that are offered by Custom Biz Solutions, Inc.
Please contact Kavita Purohit for additional information at 770-664-9999 (W), 404-433-0037 (Cell), or by email at custombizsol@gmail.com.