Here are 3 top proven income tax strategies available to commercial property owners.
There is no doubt about it, the income tax burden business owners face is often one of the biggest financial challenges and nightmares that one will encounter. Did you know that there are many different proven income tax reduction strategies that could legally save your businesses thousands and thousands of dollars a year? Most of the time, business owners are unaware of these income tax reduction strategies and are missing out on a tremendous amount of savings. Let’s review a few of these income tax strategies and get your business on the road to keeping more of your hard earned money right now.
Be sure to maximize the use of all qualified plans – This is includes IRA’s and 401(k)s as well as all other qualified plans. Part of the tax planning process is to try and defer tax for as long as legally possible. This allows you and your business to get into a situation where you are in the lowest possible tax bracket. Speak with your CPA about the right time to pull the funds out of a plan.
Spread your gains out over the course of a few years – Have you recently sold any real estate? Maybe you sold some recent business assets and made a profit from the sale. Did you know you can spread the gain of the sale out over the next several years? It is called an “installment sale” or “installment contract.” By doing so, you will be able to keep your MAGI (Modified Adjusted Gross Income) below the threshold of the net investment for income tax purposes. Structuring the sale of real estate or a business asset and using it as an installment sale is also a viable option. However, be sure to have at least one payment received and recorded after the tax year of the sale.
3. Have a cost segregation study completed – Perhaps the biggest kept secret of a proven income tax reduction strategy is that of cost segregation. Cost segregation is the process of identifying all assets that will qualify for accelerated depreciation. Many business assets such as tangible personal property will qualify for an accelerated depreciation of 5 or 7 years versus the standard 39 years. Land improvements will also be able to qualify for an accelerated depreciation of 15 years versus the norm of 39 years. A cost segregation study done by Segregation Holding allows business owners to finally keep more of their hard earned money as well lower their income tax burden. In addition, when you lower the income tax burden, additional cash is freed up which is priceless to any business owner.
At Segregation Holding, we work one on one with our clients to help ensure they are receiving the maximum amount of savings by reducing your income tax burden. If you own a profitable business and would like to receive your free quote today, simply fill out the form and we will get your benchmark estimate right back to you. We help you relieve the burden that comes with income taxes.
Contact us at 972-897-8019 or 443-Cost-Seg.