FEBRUARY TAX TIPS – 2016 Pass-Through Entity Tax Returns
Are you an S Corp or Partnership?
March is quickly approaching and the initial deadline to file pass-through entity tax returns is March 15th, 2017. As your trusted tax advisors, LGA is here to help. Here are some opportunities to minimize your tax burden by taking advantage of deductions and credits that are available to businesses:
Did your company have any significant capital expenditures during the tax year?
If the answer is yes, then your company may likely qualify for the Section 179 deduction. Businesses that are eligible for the Section 179 deduction can expense the purchase price of equipment, office furniture and fixtures, certain software, qualified vehicles and even qualified leasehold improvements, up to an annual limit of $500,000 (http://www.section179.org/section_179_deduction.html)
Does you
r company manufacture, produce or assemble any products here in the United States?
If your company produces goods, then your business may qualify for the Section 199 deduction. Businesses with “qualified production activities” can take a tax deduction of 3% from net income.This tax break is available to businesses who perform domestic manufacturing and other production activities in the United States.
Did your company acquire any new real estate or significantly improve any property during 2016?
If you have, you may benefit from a cost segregation study. This approach evaluates the various components of a building and related improvements and divides the components into categories defined by the IRS. The result of this study is an increase in cash flow by fast-tracking depreciation deductions and deferring federal and state income taxes.
Does your business invest in the development or enhancement of any products, services or procedures?
A research and development tax credit is a great tax break for companies that create new or improved products and procedures. Some of the industries and businesses that qualify are manufacturing, construction firms, food and beverage producers, software developers, and life science companies, to name a few. If you believe that you have made such an investment, an R&D assessment can be performed at no cost to you to determine if there is a valuable tax benefit associated with claiming this tax credit.
Make sure you check out these tips and file your pass-through entity tax returns, or an appropriate extension, by March 15th, 2017. Our expert tax professionals are looking forward to helping you take advantage of the various tax incentives and benefits available to your business, whether large or small. To better understand LGA’s service offerings available to help you and your business, visit our site.