Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

Wednesday, December 18, 2024

Constructing a Solid Financial Foundation: The Benefits of a Tax Advisor for Construction Companies

Tax planning is a crucial aspect of financial management for construction companies. As the industry continues to evolve, staying on top of tax regulations and maximizing deductions and credits can significantly impact the bottom line. This is where a knowledgeable tax advisor can make all the difference.

In the construction industry, maximizing deductions and credits is essential for maintaining profitability. With various expenses such as materials, equipment, labor costs, and overhead, identifying eligible deductions can result in substantial tax savings. A skilled tax advisor can help construction companies navigate these complexities and ensure that every available deduction is utilized.

Navigating complex tax regulations in the construction industry requires expertise and attention to detail. Tax advisors specializing in this field understand the nuances of construction-specific tax laws and regulations, allowing them to provide tailored guidance to their clients. From compliance issues to strategic planning, a tax advisor can help construction companies stay ahead of changing tax laws.

Minimizing tax liability in construction projects involves strategic planning and proactive decision-making. By structuring transactions effectively and leveraging available incentives, construction companies can reduce their overall tax burden. A tax advisor with experience in the construction industry can develop customized strategies to minimize taxes while maximizing profits.

Financial forecasting is an integral part of running a successful construction business. A tax advisor plays a vital role in this process by providing insights into how different financial decisions may impact tax liabilities. By incorporating tax considerations into financial forecasting, construction companies can make informed decisions that align with their long-term goals.

Real-life case studies demonstrate the tangible benefits of working with a tax advisor in the construction industry. For example, a mid-sized construction company was able to save thousands of dollars in taxes by implementing a cost segregation study recommended by their tax advisor. By reclassifying certain assets for accelerated depreciation, the company saw immediate cash flow improvements and increased profitability.

In conclusion, partnering with a knowledgeable tax advisor is essential for constructing a solid financial foundation in the construction industry. From maximizing deductions and credits to navigating complex regulations and minimizing tax liability, a skilled advisor can provide valuable insights and strategies to help construction companies thrive financially. By incorporating tax planning into financial forecasting and learning from real-life case studies, construction businesses can achieve long-term success while staying compliant with ever-changing tax laws.

#ConstructionSavings #TaxStrategies #BuildBigger #SmartInvestments #ConstructionLeaders

Friday, June 14, 2024

Demystifying Ethereum ETFs: Essential Tax Considerations Every Investor Should Understand

With the rise of Ethereum ETFs in the investment landscape, many investors are eager to jump on board and capitalize on the potential growth of this popular cryptocurrency. However, before diving headfirst into the world of Ethereum ETFs, it is crucial for investors to understand the tax implications associated with these investments. In this blog post, we will demystify Ethereum ETFs and delve into essential tax considerations that every investor should be aware of.

## Understanding Ethereum ETFs: A Brief Overview

Ethereum ETFs are exchange-traded funds that allow investors to gain exposure to the price movements of Ethereum without directly owning the digital currency itself. These ETFs track the performance of Ethereum through futures contracts or other derivative instruments, providing a convenient way for investors to invest in Ethereum without dealing with the complexities of owning and storing cryptocurrencies.

## Tax Implications of Investing in ethereum ETFs

When it comes to taxes, investing in Ethereum ETFs is treated similarly to investing in traditional securities. Any capital gains realized from selling Ethereum ETF shares are subject to capital gains tax, which can vary depending on how long the investment is held. Short-term capital gains are taxed at higher rates than long-term capital gains, so it is important for investors to consider their holding period when planning their tax strategy.

Additionally, dividends received from Ethereum ETFs may be subject to income tax at ordinary income tax rates. It is crucial for investors to keep accurate records of their transactions and consult with a tax professional to ensure compliance with tax laws and regulations.

## Strategies to Minimize Tax Liabilities on Ethereum ETFs

There are several strategies that investors can employ to minimize their tax liabilities when investing in Ethereum ETFs. One common strategy is tax-loss harvesting, where investors sell losing positions to offset capital gains and reduce their overall tax burden. By strategically managing their investment portfolio, investors can take advantage of tax-efficient strategies to maximize their after-tax returns.

Another effective strategy is utilizing tax-advantaged accounts such as IRAs or 401(k)s to invest in Ethereum ETFs. By investing through these accounts, investors can defer or potentially avoid paying taxes on their investment gains until they begin withdrawing funds in retirement.

## Important Tips for Investors Considering Ethereum ETFs

Before investing in Ethereum ETFs, it is essential for investors to conduct thorough research and understand the risks involved. Cryptocurrencies are known for their volatility, so it is important for investors to have a long-term investment horizon and be prepared for potential fluctuations in value.

Furthermore, staying informed about regulatory developments surrounding cryptocurrencies and blockchain technology can help investors make informed decisions about their investments. By staying educated and seeking guidance from financial advisors or tax professionals, investors can navigate the complex world of Ethereum ETFs with confidence.

In conclusion, while investing in Ethereum ETFs can offer attractive opportunities for growth and diversification, it is crucial for investors to be aware of the tax implications associated with these investments. By understanding how taxes impact their investment returns and implementing strategic tax planning strategies, investors can maximize their after-tax profits and achieve their financial goals effectively.

Monday, April 29, 2024

ERTC - Employee Retention Tax Credit

Hi, again and to espouse the benefits that are out there for much of thebusinesses that have actually been affected by the pandemic. What we're seeing is that tax professionals are missing these credits for their clients they're not able to determine that the clients are eligible since they believe that if they have not lost cash during the pandemic then they aren't eligible for the credit and that's just simply not the case and the creditis as much as thirty three thousand 000 per employee and that's a refundable credit that's cash in your pocket that's something to try to find.

So we wish to make certain that everyone is looking out for it and if it's possible to help you get the credits.

Exactly how It Functions

The first misconception that experts have is that if you were qualified for a ppp loan and you got forgiveness on that loan you are not eligible for the employee retention credit this is false.

if you got ppp funds you are stillable to get the staff member retention credit for ppp you aren't able to double dip wages with erc but that doesn't indicate that you can't use both programs to maximize both credits. If somebody makes twenty thousand dollars per quarter or eighty thousand dollars a year for that quarter you can use tenthousand dollars of incomes toward the erc creditand ten thousand dollars towards ppp forgiveness this is going to maximize both credits and provide you the most dollars in the bank you can not double dip with ppp and ertc credit funds suggesting that you can not utilize funds thatare utilized to declare the employee retention creditto use towards ppp loan forgiveness thisis why it's essential to discover a specialist tohelp you compute the maximum possible creditwhile is still attaining ppp loan forgiveness. another typical mistaken belief that we discover that people are recognizing about ertc tax credit is that if your income increased or has actually not significantly decreased you are not qualified for the ertc so there is an income part where you can be qualified if your income went down 50in 2020 or 20 per quarter quarter over quarter in 2021 you are qualified for ertc tax credit however that's not the only way.

Another chance for erc is whether or not your organization was significantly impacted by a government shutdown so what does that mean if your business is separated into numerous components for example a restaurant you have indoor dining you have takeout if indoor dining represents more than 10 of your income historically and indoor dining was impacted by a federal government shut down or federal government orders requiring you to socially distance and limiting the capacity of your dining room by 50 you're now qualified for the employee retention credit regardless of the fact that state your takeout sales went through the roofing and you've actually done quite well throughout the pandemic.This is an opportunity that professionals are missing and not looking through thoroughly.

I can you give us another example sure let's use a producer as an example a producer can qualify for the staff member retention credit because of a disturbance in its supply chain, let's state an automobile manufacturer has a provider of carburetors that was closed down completely due to a government order because of that the vehicle manufacturer's supply chain was interrupted, and they could not complete their vehicles for production and sale.

Let's do one more example let's appearance at alaw firm that mostly focuses on lawsuits, well the courts were closed for a good part of2020 and 2021 so how does that effect the lawfirm more than 10 percent of its earnings typically derived from lawsuits expenses straight going tocourt was impacted and therefore they're now eligible for the credit.

If your income went up or didn't substantially reduce that you're eligible for these credits, a lot of professionals are missing out on these types of eligibility criteria because they're not recognizing that.

OBTAIN PROFESSIONAL HELP

{The most effective way is to deal with a no-risk, contingency-based expense financial savings firm. That will work out in support of their clients to get the very best prices possible for their existing clients. They will certainly audit old billings for errors getting their clients refunds as well as tax credits. They can raise the profitability as well as overall appraisal of their customers companies.|That will work out on part of their customers to obtain the finest rates possible for their existing customers. They will investigate old billings for mistakes getting their customers refunds and credits.

Ready To Obtain Begun? Its Simple.

1. Whichever company you pick  to work with will establish whether your service qualifies and gets approvel for the ERTC.

2. They will certainly assess your case as well as compute the optimum quantity you can obtain.

3. Their team guides you through the claiming process, from beginning to finish, including proper documents.



Friday, March 10, 2023

THE EMPLOYEE RETENTION CREDIT

THE EMPLOYEE RETENTION CREDIT or ERC, which is a generous stimulus program designed to bolster those businesses that were able to retain their employees during this challenging time. Due to the extremely complex tax code and qualifications, it is severely underutilized. 

ERC QUALIFICATIONS

While the general qualifications for the ERC program seem simple, the interpretation of each qualification is very complex. Our significant experience allows us to ensure we maximize any qualifications that may be available to your company.

THERE'S STILL TIME!

Your business has up to three years to amend previously filed payroll taxes for 2020 & 2021 and claim your ERC refund from the IRS. We will help you maximize your credit and discover how much you are qualified to receive.

Qualifications:
Must have at least 10 to 500 Full-Time W2 Employees
Been in business since February 15th 2020
Business must be USA based
Available to Profit and Non-Profit Businesses
Qualify with Decreased Revenue or business disrupt during COVID Event


Saturday, November 26, 2022

Apply for employee retention credit ERTC: Easy Online Rebate Calculator

The employee retention credit (ERC) helps employers retain their employees and offset the cost of providing health care benefits during these difficult economic times. The ERC is a refundable tax credit against certain employment taxes equal to 50% of qualified wages paid from March 13, 2020 through December 31, 2020. Qualified wages are limited to $10,000 for each employee for all calendar quarters.

Eligible employers can claim the ERC on Form 941 when filing their quarterly employment tax returns. Employers must have experienced either:

 

• A full or partial suspension of operations due to an order from an appropriate governmental authority limiting commerce, travel or group meetings due to COVID-19; or

• A significant decline in gross receipts compared to the same quarter in the prior year.

To be eligible for the ERC, employers must claim an employer portion of Social Security tax on wages paid after March 12, 2020 and before January 1, 2021. The credit is available for both for-profit organizations and certain non-profit organizations.

To apply for the ERC benefit, employers should consult a qualified tax advisor or CPA. Employers can also visit the ERTC Wizard website for more information on how to qualify and apply for this important tax benefit.  With the ERC providing much needed support to businesses that have been affected by COVID-19, employers should take full advantage of this valuable credit when filing their employment taxes. 

Taking advantage of the employee retention credit is a great way for employers to ensure that workers remain with their company during these difficult times. It can also help employers offset some of the costs associated with providing health care benefits to employees and keep them safe and healthy. Employers should speak to a qualified tax advisor or CPA if they are unsure about how to go about applying for this important tax benefit.

apply for employee retention credit

Tuesday, November 10, 2020

We Can Write-Off Work-From-Home Deductions on Our 2020 Tax Forms, Right? Right??

Early on, working from home was a matter of adjusting on the fly. Your new desk? The kitchen table will do, thank you. No quiet place for conference calls? The front seat of the car is now your Zoom chamber. But as COVID-19 wears on and telecommuting becomes a long-term reality, however, a lot of workers have purchased items to transform their home into a functional office space. Folks have spent money on everything from increased Internet speeds and hi-def Zoom cameras to printers and more comfortable desk chairs. But this begs the question: How will this effect 2020 tax deductions? Can we write off work from home expenses accrued during the COVID pandemic when we file our taxes? What kind of work from home office tax deductions or tax write-offs can we expect? Or, dun dun dunnn, are we on the hook for the items we purchased to do our jobs better? 

Well, here’s the thing: if you’re working remotely because of the pandemic,  you can’t write off those work from home expenses. No, you probably don’t want to hear this. But if you’re planning on buying a fancy new ergonomic desk chair to write off as a work from home deduction, well, it’s good to keep in mind.

Tax Deductions 2020: Why You Can’t Write Off Work-From-Home Expenses

Once upon a time, work from home expenses that weren’t reimbursed by your employer could at least be written off on your tax return. But that ended with the Tax Cuts and Jobs Act of 2017, or TCJA, which ended miscellaneous itemized expenses. Through 2025, you can no longer take a deduction for new computer equipment or furniture for your home office, not to mention other job-oriented outlays like fees to professional associations and union dues. 

Do you plan on sending your kids back to school this fall?

Yes. I trust that our schools are taking precautions.

No. We don't feel that proper precautions are in place.

I'm not sure yet. It depends on how things progress.

Thanks for the feedback!

The exception are self-employed individuals, including independent contractors, who can still deduct work expenditures on Schedule C of their tax return. That includes direct expenses like a new work computer and the painting of a home office that you use exclusively for your job, says Dan Gibson, a partner with the accounting firm EisnerAmper. 

If you’re running your own business, you can also write off the cost of the home office itself, as long as it’s used exclusively for work purposes. Gibson says self-employed folks have two options when it comes to deducting the office. The simplified method allows you to take a $5 per-square-foot deduction, which is capped at $1,500. You also have the option of calculating the actual costs for the office, including mortgage and insurance payments, as a percentage of the overall house.

Now, claiming a home office deduction, Gibson acknowledges, may increase the odds of an IRS audit, so it’s something you want to think through.

“A lot of tax practitioners don’t like to do that because they say it raises a red flag,” he says. “But if you’re using the room exclusively as an office and you’re not using it as the kids’ playroom, there’s a legitimate reason for that deduction.”  

So, as far as writing off that new desk and Wi-Fi range extender you bought to get the job done at home, we’re all out of luck.

There’s Another Option For Remote Work Expenses

Don’t stress too much if you’re not eligible for a deduction, though. Given the demands COVID-19 put on employees, a lot of companies are simply reimbursing them for work-oriented costs like increased data plans and broadband service, says Amy Bess, a Washington, DC-based employment attorney with the law firm Vedder Price. If you can get your employer to help out with those bills, the lack of a tax write-off becomes irrelevant. 

In most cases, Bess says businesses aren’t actually required by law to take care of those expenses for you, but there are exceptions. Non-exempt employees — that is, workers who are eligible for overtime — may be eligible to have things like Internet and phone data costs recouped under the Fair Labor Standards Act, or FLSA. 

There are also a handful of states, including Illinois, California, Montana and New Hampshire, that have their own regulations concerning employment outlays. California law, for example, requires employers to reimburse for “necessary expenditures or losses incurred by the employee in direct consequence or discharge of his or her duties.” 

Most everyone else is subject to the goodwill of their employer. Fortunately, the majority of companies have been proactive when it comes to look at reimbursement issues, according to Bess. 

“They want to support their work-from-home employees so they can continue to be productive and feel connected with the employer,” she says.  

For businesses that are behind the curve, Bess says there are ways to apply pressure short of threatening a big lawsuit if they don’t pony up. She recommends talking to other employees and seeing if they’re experiencing similar issues. When multiple workers are asking for assistance, employers are more likely to take notice, she says. 

Needless to say, sending in receipts for your office’s new wood paneling probably won’t get the job done. But for expenses that you can’t avoid, like a new printer, it’s certainly worth a shot. And organizations are often willing to pitch in for a beefed-up Internet or mobile data plan, especially if you’re only asking for a pro-rated amount based on your business usage. 

“I just think it’s important for employees to start the dialogue,” says Bess. “I don’t think it should be that big of a controversy.”  

expense reports